Why do banks require their customers to keep their cash at their specific bank after they have received a loan?
This has become a really critical question since interest rates are going up and cash management is becoming even more important.
Silicon Valley Bank (SVB) had a liquidity/solvency crisis in the middle of March 2023, and was taken over by the Federal Deposit Insurance Corporation (FDIC).
Moving bank accounts has more moving parts that you'd think. Here is a checklist to help.
The current rise in interest rates and decrease in startup fundraising is leading to a deposit squeeze at startup banks. These circumstances haven’t occurred in a while, so let’s take a look at what’s happening and why.
Silicon Valley Bank helps innovative companies and their investors move bold ideas forward, fast.
Today we're talking about fund venture lenders vs. bank venture lenders. Now, banks, they're always really really cheap. They have low interest rates and low warrant coverage and that's partially because they are lending out other companies’ deposits. They take one company's deposits and lend it out to another. That's how banks work in just about everything. So that way their cost of funding is very very low.
Growing companies is what they do. From early stage to IPO and beyond.
Bridge Bank was founded in the highly competitive climate of Silicon Valley in 2001, and still provides a full suite of professional business banking services.
The punch line here is that every single account on the balance sheet needs to be reconciled, not just the bank and the credit cards.
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