Northway offers various strategies to ensure that the funds in your business checking account are available when you need them, yet work hard to support your cash position when you don’t.
Zero Balance Accounts Simplify management of your company’s finances by having us automatically move cash from various business checking accounts into one primary operating account. Bank statements continue to be provided on each subsidiary account.
Sweep to Line By sweeping excess funds over a predetermined target from your business checking account into your credit line each night, you keep interest expense to a minimum by reducing your principal. Funds are returned to your checking account as needed to protect against overdrafts.
Sweep to Repurchase Agreement Excess funds over a predetermined target are automatically transferred into interest-earning repurchase agreements* at the end of each day to maximize earnings. When your checking account falls below the target balance, the invested funds are automatically swept back.
Sweep to Line/Repo Combining the benefits of the two options above, a Sweep to Line/Repo allows you to both pay down your credit line and earn interest on excess balances. Once your credit line balance reaches zero, any remaining funds are automatically swept into overnight repurchase agreements*.
Call Kristy Comarcho at (603) 326-1040 or any one of our Bankers to arrange a confidential discussion about the many options available to you and your business.
*Please note that repurchase agreements are secured by U.S. government securities and are not bank deposits. Consequently, they are not FDIC insured and may lose value. Not insured by any federal government agency. Not guaranteed by the bank.