Liquidity Management

Zero Balance Account

Why let your cash sit idle when you can put it to work? Zero Balance Accounts, or ZBAs, automatically transfer funds to and from a master account from one or more secondary accounts thus, maintaining a zero balance. 

ZBAs are designed to help you eliminate the manual transfer of funds between accounts, reduce idle cash, and prevent overdrafts. Payroll accounts are often ZBAs. Money is automatically moved to fund the items presented for payment that day.

One of the benefits of Zero Balance Accounts is that they allow your business to maximize earnings on idle cash and reduce borrowing costs. Money moves from the operating account to pay items in the secondary accounts and money from the secondary account moves to the operating account at the end of each banking day. Then, excess cash can move to an investment account or be used to pay down a loan.

Investment Sweep

Earn interest by automatically moving excess funds to an interest- bearing account.

• Funds are readily available in your operating account when needed.

Loan Sweep

Transfer funds automatically between your operating account and loan accounts. 

• Advance funds as needed to meet liquidity needs.
• Use excess cash in operating account to pay down loan balance and minimize interest expense.