![]() ![]() We’ll increase it to 10 to really emphasize the point. Next, assume you spent four hours of your day rate shopping and ended up squeezing out an extra five basis points through an amalgam of providers. Let’s say you have $25 million from your recent fundraising. Here’s an exercise to illustrate why you are better off spending your time elsewhere. Cash management automation has reached a point where you and your finance team no longer have to spend hours to achieve yields that reflect the current market rate. As a founder with limited time, you are better off managing other parts of the business. The wrong answer is to give in to the urge to spend hours emailing different banks in search of the highest yield payout and agonize over hunting for an extra five to 10 basis points of yield. Sure enough, the interest rate is now 25 basis points higher, raising a question for founders: How should this hike impact the way I manage my company’s cash? As I’ve previously written, the Fed avoids surprises. The recent banking sector developments that sent founders scrambling for places to diversify their cash reserves left markets wondering if the Fed would follow these events with another rate hike. Treasury management should be top of mind for startup founders. ![]()
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