Anderson & Catania Senior Surety Bond Producer, Tony Demartino, provides some excellent insights on how to manage bank sweeps associated with commercial LOCs.
Commercial bank lines of credit can be an excellent way to manage your business’s short-term obligations and expenses, like payroll, accounts payable, etc.
The problem can be that most banks require you to set up sweep accounts to automatically pay your LOC down with “excess” cash in your other accounts. That can catch you by surprise! What’s the solution?
Don’t get caught by surprise! Always manage your bank LOC with both eyes wide open, and always make sure you understand all the intricate details.
What else can you do? Check out the latest 90-second episode of “Ask the Surety Pro,” it’s packed with tips and insights.