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Is it feasible to keep active cash flow spread across multiple financial institutions? (Honest question) Being insured for $250k is payroll for about 10 people

Is it feasible to keep active cash flow spread across multiple financial institutions? (Honest question) Being insured for $250k is payroll for about 10 people for a month. If your other funds were in a line of credit that abruptly closed or in equities that may not be worth as much when everyone shows up on Monday, what options are there?

bruce343434 4y ago
25k a month for salary? I'd love to work at your place!
- jonhohle 4y ago
  These are SV companies plus payroll costs 1.25-1.5x employee salary (benefits, taxes, and insurance don’t appear out of thin air).
  - bruce343434 4y ago
    "Worst case" that's still 16.66K per month. Sign me up!
    - jonhohle 4y ago
      I’d say, go look for a job in the Bat Area, except, that might not be such a good idea right now ;-) that’s not out of line for an engineering salary there. (The trick is, get one of those companies to pay you Bay Area rates while you live in a much lower cost of living area working remotely!)
- thallium205 4y ago
  That would average around 225K/yr salary after payroll tax. With retirement, health, etc benefits it’s closer to reality for an engineering salary than you think.
  - logifail 4y ago
    > closer to reality for an engineering salary Never mind engineering, how much are SV startups paying their corporate finance and corporate treasury officers? Not enough, perhaps.
    - thallium205 4y ago
      A 10 person company shouldn’t need a “treasury management” strategy in a functional banking environment.
      - logifail 4y ago
        > A 10 person company [..] Newsflash: there are plenty of places, and plenty of sectors, where a 10-person company hasn't got anywhere near enough cash on deposit to reach the local deposit guarantee limit.
    - thallium205 4y ago
      The entire banking system was about to be revealed as a total clown show scam (that it is) if they weren’t going to step in here. How do you expect an SVB company to run payroll for more than 10 or so employees in a risk free way? How about 100 employees? If you can’t even ensure a tiny company can do that without losing everything and folding then you have problems with your banking system that are wayyyy more serious. This epiphany was going to happen in an extraordinary way today if they didn’t restore confidence in the (very broken) system.
      - logifail 4y ago
        > The entire banking system was about to be revealed as a total clown show scam (that it is) if they weren’t going to step in here. It's fairly simple: When things are going well, entrepreneurs want the state and its oh-so-tiresome regulation to get out of their way. Then, when things don't go well, it's those very same entrepreneurs who claim it's necessary for the state to step in and save everyone. https://twitter.com/BillAckman/ https://twitter.com/BillAckman/ is quite the read at the moment.

bruce343434 4y ago

25k a month for salary? I'd love to work at your place!

jonhohle 4y ago
These are SV companies plus payroll costs 1.25-1.5x employee salary (benefits, taxes, and insurance don’t appear out of thin air).
- bruce343434 4y ago
  "Worst case" that's still 16.66K per month. Sign me up!
  - jonhohle 4y ago
    I’d say, go look for a job in the Bat Area, except, that might not be such a good idea right now ;-) that’s not out of line for an engineering salary there. (The trick is, get one of those companies to pay you Bay Area rates while you live in a much lower cost of living area working remotely!)
thallium205 4y ago
That would average around 225K/yr salary after payroll tax. With retirement, health, etc benefits it’s closer to reality for an engineering salary than you think.
- logifail 4y ago
  > closer to reality for an engineering salary Never mind engineering, how much are SV startups paying their corporate finance and corporate treasury officers? Not enough, perhaps.
  - thallium205 4y ago
    A 10 person company shouldn’t need a “treasury management” strategy in a functional banking environment.
    - logifail 4y ago
      > A 10 person company [..] Newsflash: there are plenty of places, and plenty of sectors, where a 10-person company hasn't got anywhere near enough cash on deposit to reach the local deposit guarantee limit.
  - thallium205 4y ago
    The entire banking system was about to be revealed as a total clown show scam (that it is) if they weren’t going to step in here. How do you expect an SVB company to run payroll for more than 10 or so employees in a risk free way? How about 100 employees? If you can’t even ensure a tiny company can do that without losing everything and folding then you have problems with your banking system that are wayyyy more serious. This epiphany was going to happen in an extraordinary way today if they didn’t restore confidence in the (very broken) system.
    - logifail 4y ago
      > The entire banking system was about to be revealed as a total clown show scam (that it is) if they weren’t going to step in here. It's fairly simple: When things are going well, entrepreneurs want the state and its oh-so-tiresome regulation to get out of their way. Then, when things don't go well, it's those very same entrepreneurs who claim it's necessary for the state to step in and save everyone. https://twitter.com/BillAckman/ https://twitter.com/BillAckman/ is quite the read at the moment.