Automatic money transfers help reduce overdraft risks
Business checking accounts generate a lot of activity. When you're approved for a Line of Credit Sweep, First American Bank will constantly monitor your transactions and automatically transfer money if the account balance is getting too low. First American offers two types of Sweep products:
- Transfers money from your line of credit to your checking account when your balance drops below a set level
- Protects you from overdrafts and ensures your account has the amount of cushion you prefer
- Transfers money into your checking account when it drops below a certain level
- Transfers money out of your checking account when it exceeds a set amount and uses it to pay down any outstanding principal on your line of credit
- Provides the convenience of automatic transfer
- Improves cash flow
- Reduces interest expense
- Has a line of credit or a term loan as well as a checking account with First American
- Requires certainty that funds will always be available to cover incoming debits
- Wants to reduce interest expense