Liquidity Management - & Investment Solutions
Making the most of your cash flow includes adding services to your account like Zero Balance Account transfers and Repurchase agreements, so that your money works harder for your business.
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Zero Balance Account (ZBA)
A Zero Balance Account (ZBA) links one or more subsidiary checking accounts to a main operating checking account, referred to as the Master Account.
Each subsidiary account is maintained at a zero balance and excess funds are transferred to the Master Account. As items are presented for payment against the subsidiary accounts, the necessary funds are transferred, automatically, from the Master Account.
Repurchase Agreement (Repo)
A Repurchase Agreement (Repo) Sweep is a separate, interest-bearing account that is linked to your operating account. Each night, excess collected balances not required for disbursements or compensating balances are automatically transferred to the Repo Account where they earn interest. Interest is calculated daily and paid monthly.
- Funds maintained in the checking account portion of the Repo Sweep arrangement are insured by FDIC up to $250,000.
- Funds maintained in the interest-earnings portion of the Repo arrangement are secured by securities that are assigned to the account. These securities consist of Government Agencies (GNMA) or Government Sponsored Entities (FNMA, FHLMC or FHLB) MBS or CMOs.
Daily Safekeeping Receipts provide information about the security or securities that are currently assigned to the account. This information includes the CUSIP # and current market value.1
Small and Elite Business Sweep
Our Small and Elite Business Sweep accounts are automated cash management tools that assist businesses to make the best use of their funds. These accounts link your checking account to a Global Credit Union Bank savings account. Transfers from the savings account to the checking account are limited to six per monthly statement period.
Line of Credit Sweep
A line of credit sweep links a commercial line of credit to your primary checking account. As funds are disbursed from the checking account, an automatic advance from the line of credit covers any shortfalls. Additionally, any excess funds in the checking account can be automatically transferred to the line of credit to pay down outstanding balances. There are 2 types of sweep products:
- Overdraft Protection
- Overdraft Protection with Automated Paydowns
Shortfalls in checking account are covered by automatic advances from the line of credit in increments of $100. Conversely, excess balances in the checking account are used to pay down the line of credit’s outstanding balance.
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Connect with our Treasury Management team today to learn more about equipping your business with better cash flow solutions.
1 THE INTEREST-EARNING PORTION OF THIS REPURCHASE SWEEP AGREEMENT IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC). Funds are not a deposit or other obligation of, or guaranteed by Global Credit Union Bank or its affiliates. Funds held under this Repurchase Agreement are not guaranteed by the United States Government or any Agency thereof. Subject to investment risks, including possible loss of principal amount invested.