Simmons First's Loan Sweep service provides an attractive way for cash managers to relieve the daily burden of determining a cash position and transferring funds to a line of credit. When using the Loan Sweep service, funds in excess of those needed to support daily activity are automatically transferred to your company's line of credit. When daily checking account activity requires funding, the funds are automatically swept from the line of credit.
The Way It Works
Your cash manager and Simmons First agree on a target balance to be maintained in your checking account on a daily basis.
At the end of each business day, after all debits and credits have posted to your account, collected balances in excess of the predefined target are swept to your company's line of credit to reduce the outstanding balance.
If necessary to maintain the target balance, the next day the funds are swept back into your demand deposit account from your line of credit.
- Excess operating account balances are always fully utilized to reduce interest accruals on your line of credit.
- The "sweep" feature eliminates the need for daily cash manager involvement to determine cash position and transfer decisions.
- The status of your Loan Sweep is available on a daily basis to your cash manager via Simmons First Bank Anywhere.
to request more information on Simmons First Cash Management services.