Idle business cash can quietly cost real money
An early SaaS company raised $4 million six months ago, and most of that money is still sitting in a Chase bank account without earning much. About $3 million is effectively idle cash.
At the company’s current spending pace, it has about 18 months of runway left. The gap between earning 0% and more than 4% on $3 million is about $120,000 a year.
That is a meaningful amount of money compared with smaller operating choices, such as picking a sales tool. The main question is whether operating cash should stay in a basic bank account or move to a better place that still works for daily needs.
Key points
- The company raised $4 million and left much of it in a low-earning bank account.
- Around $3 million at more than 4% interest could produce about $120,000 a year.
- The company has about 18 months of runway at its current .
- Cash management can matter as much as smaller or tool decisions.
- Safety and easy access matter more than chasing the highest return.