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A Line of Credit Sweep:
- Provides for better cash management.
- Saves money by reducing the amount of interest accrued on the line of credit.
- Alleviates the need to manually transfer funds to/from the line of credit.
Here's how it works:
Excess funds over a pre-established target balance are transferred to your commercial line of credit from your business's operating account. The money is used to pay down the principal balance on the line, reducing your interest expense. Money is transferred back to the operating account as needed to maintain the target balance.
Who can benefit from a Line of Credit Sweep?
- Businesses that request frequent draws/pay downs from/to their line of credit.
- Businesses that want to maximize their cash flow.
For additional information, contact an AnchorBank business banker at 1-800-252-6246 ext. 4104 or 608-259-4104.
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