Zero Balance Account

A Zero Balance Account (ZBA) is a checking account that is designed to maintain a zero balance, even as checks are written against it. The ZBA is funded by a primary account that generally receives all deposits and disburses funds to the ZBA only when necessary to cover checks that have been presented for payment. More than one ZBA can be linked to a centralized primary account.

How Does a ZBA Work:
Each day, debits accumulate in the ZBA as checks clear against it. At the close of the business day, funds from the primary checking account are swept to the ZBA, bringing its balance back to zero. This sweep function eliminates any possibility of overdrafts as long as the primary account is properly funded.

How your company benefits:
  • Flexibility - separate your different types of
    payments:
    - Payroll
    - Health Care
    - Vendors
    - General Payables
    - Multiple accounts for divisions or locations
       with decentralized authority
  • Increased Control - concentrate your funds
    in a single account to make sure that each
    account only receives the funds needed,
    while making any additional funds ready for investment.  It also eliminates idle balances
    in multiple disbursement accounts.
Consider this service if your company:
  • Has different accounts for different payables i.e. payroll, health care, accounts payable etc.
  • Processes deposits from different locations that need consolidation to one account
  • Streamline process of deposits
  • If you have multiply store locations and want to consolidate receivables
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