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Cash Management, Account Transfers, and Sweeps

Cash-management terms for collection accounts, sweep transfers, and automated account movement.

Cash management, account transfers, and sweeps are treasury banking tools that move funds between accounts, collect receipts, and concentrate idle balances for liquidity control. This branch covers collection accounts, lockbox banking, sweep accounts, end-of-day sweeps, sweeping, and zero-balance accounts.

Use these pages when an account structure or automated transfer changes cash availability, borrowing needs, interest income, overdraft exposure, treasury control, or reconciliation evidence.

What This Branch Covers

TermUse it for
Collection AccountAccounts used to receive customer payments or concentrate collections.
Lockbox BankingBank-handled receipt collection and remittance processing.
Sweep AccountAccounts that automatically move excess balances under preset rules.
End-of-Day SweepDaily transfers that move balances after close-of-business processing.
SweepingThe process of moving funds between accounts under sweep rules.
ZBA (Zero-Balance Account)Zero-balance account structures used to centralize cash while funding disbursements.

Decision Lens

Start with the account structure and transfer rule. A sweep, ZBA, lockbox, or collection account changes analysis only when the bank record shows when balances move, where funds settle, who controls the account, and how exceptions are handled.

Evaluation Checklist

  • Identify the operating account, concentration account, collection account, sweep target, transfer timing, cutoff time, balance threshold, bank fees, and authorization controls.
  • Separate receipt collection, lockbox processing, intra-bank transfer, sweep execution, overnight investment or debt paydown, posting, and reconciliation.
  • Check treasury agreements, account statements, bank implementation documents, sweep reports, lockbox reports, cash-position worksheets, and exception logs.
  • Review whether the setup changes liquidity, interest income or expense, overdraft risk, counterparty exposure, operational control, or audit evidence.
  • Treat legal, tax, accounting, regulatory, and investment-suitability conclusions as professional-advice areas.

Common Mistakes

  • Treating an expected sweep as completed cash movement before the bank posts it.
  • Ignoring cutoff times, target balances, blocked funds, and overdraft arrangements.
  • Confusing a collection account with a disbursement account or concentration account.
  • Reviewing liquidity without the sweep agreement and daily cash-position records.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

Collection Account

Bank account used to receive, aggregate, and control customer payments or remittances.

End-of-Day Sweep

An end-of-day sweep moves excess cash after daily closing into a concentration, investment, or debt-reduction account.

Lockbox Banking

Lockbox banking routes customer payments to a bank-controlled address or account to speed collections and cash application.

Sweep Account

A sweep account automatically transfers excess balances between accounts or investments to improve liquidity and yield.

Sweeping

Sweeping refers to the automated transfer of funds from several bank accounts to a target account, typically occurring at the close of business each day.

Revised on Sunday, June 21, 2026
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