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Money Management

Where do I keep my money?

Cash is king and after the collapse of SVB, it makes startups reconsider where they are keeping their money. The key: diversification. Best practice is to have different accounts at separate banks for different cash flow needs (e.g. one bank account to process primary receivables and payables, another bank account to handle periodic transactions like rent and payroll).

What banks should I use?

A mix of both small and large banks.

  • Smaller Banks - Tend to be faster to understand a startup’s needs and can tailor products to work best for your business.
  • Bigger Banks - Slower (can take 2+ months to create accounts), but mitigate counterparty risk and can be leveraged when you grow to a larger scale.
  • Securities - Treasury and Max Checking Accounts
    • Meow
      • Earn ~4.7% with U.S. Treasury Bills
      • Meow max checking account has up to $50 million in FDIC insurance and 4.31% interest.
    • Arc
      • Earn up to 5.03% APY through government-backed investments
      • FDIC insurance eligible up to $2.75M.

What credit card should I use?

We believe that when a founder knows their numbers, they know their company, and then can make informed decisions. It’s important to look for a business credit card that not only gives you access to capital, but also provides tools and API integrations that help you manage cash burn.

Our favorite business credit cards for startups:

  • Ramp - Benefits here
    • No personal guarantee required
    • High credit limit - based on your company’s cash balance
    • Earn 1.5% cash back on every purchase
    • You don’t pay interest because you can’t carry a balance
  • Brex - Benefits here
    • No personal guarantee required
    • High credit limit - based on your company’s cash balance
    • Favorable rewards marketplace to use points on
    • You don’t pay interest because you can’t carry a balance

Other business credit card options: