Some businesses have deep cash flow cycles that can test the skills of the best cash manager. For enterprises that must invest up front in labor, materials, and inventory before being paid, a line of credit sweep can be the answer.
Some businesses are just the opposite. They can stack up the cash in the bank and pay their expenses later, taking advantage of supplier and manufacturer’s credit. While this is an enviable position, prudent managers never stop worrying about their money, or the money of others in which they are entrusted. Keeping that pile of cash both safe and liquid is the goal. This is where Insured Cash Sweep (ICS) comes in to sweep away worries.
One of our customers, a successful e-commerce retailer, receives most of his revenue during the holiday sales season but doesn’t remit payment for his inventory until after the first of the year. When his bank balance balloons, he is able to maintain FDIC deposit insurance on every penny in his Insured Cash Sweep Account. This is because funds in excess of the normal $250,000 per customer deposit insurance limit are swept into a network of banks. Each bank holds a portion of the balance no greater than the limit, so all funds are secured.
Our membership in the Promontory Interfinancial Network of banks allows us to provide this service seamlessly to any customer. ICS accountholders receive just one statement, and can see where their funds are at any time. Not only is the money kept safe, but it is available for transactions just as readily as any other bank deposit. Our customers never have to feel that they need a big bank to handle their large deposits. With Insured Cash Sweep Accounts, they can continue to receive our responsive service with no worries.