credit sweep

Definition

The authorized collection of excess or idle funds at regular intervals from a company's bank account by a bank for the purpose of applying them against outstanding debt balances. The amount of funds that may be swept is based on a minimum account balance established by the company above which excess funds are available for debt payment.

Use credit sweep in a sentence

You may want to try and perform a credit sweep so that you know everything is going fine for your account.

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The credit sweep was an effective use of the funds that were not being optimally used at this particular moment.

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On the 5th day of every month, the bank performs a credit sweep on our company's checking account and applies the amount swept to payments on our outstanding loans.

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Credit Support Annex (CSA) credit tenant