Applying for Sweep Business Loans Online

Anyone looking for a business loan will find there are several different options. One of the many options available is a sweep loan. Sweep loans involve moving money from one place to another, and may just be what your business is looking for because it will help you manage the business finances when they are not consistently even.


Types of Sweep Loans


Clean Sweep Loans: These loans consolidate debt by combining all debt into one loan. This kind of loan is a good mechanism for debt management.


Automated Margin Call Sweep Loans: These loans are used on brokerage accounts. If investments value ever drops below their selling price, the broker who sold the investments on credit may need a margin call. This and other other fees may be “swept” from the account. These are good for investment management.


Automatic Payment: These sweep loans automatically make payments toward lines of credit. If you have a line of credit with a certain banking institution, find out if they offer a sweep loan.


How Sweep Loans Work

Sweep loans use automatic drafts setup with the bank to automatically transfer money back and forth between accounts. This works for checking accounts, home loans, business loans, car loans, and more. The bank will allow you to setup all the loans and other accounts you want to transfer money to and from. Essentially, the sweep loan will pull money form you line of credit to cover a check and prevent an overdraft charge. When there is extra money in the checking account, it will pull back over to the line of credit to make a payment.


Benefits of Sweep Loans

  • It helps manage cash flow, preventing overdraft and other bank fees.
  • Saves time and money. It's an automatic process. Often times the interest rate is lower on the loan than it is on the credit card, and it can ensure you're paying less in interest that way.
  • Protects the business reputation because it prevents checks from bouncing. 


Applying for Sweep Loans Online

Depending on the institution issuing the loan, there may or may not be an online application. There also may be varying requirements, as it is up to each individual lender to determine their requirements. If an online application is not available, you can ask to have one sent via mail, or arrange to meet with a bank employee to complete the application.


If you've decided a sweep loan is right for you, contact your banking facility to arrange for an application.