Hi, Lindsey, I’m Peter. A bit about me:
-California, widowed father of a disabled son
-I employ 1 person part time
-Used to drive a used Honda Odyssey, now have an even older Chevy Suburban
-The financial future of my company is OK because I use two different banks.
Since I’m a CPA/MBA, I have a couple of suggestions for you. Just guessing that you need about 150k a month to pay your team. They are the most important assets in your business. Be sure to take care of them.
On Monday, you will have $250k of cash available in your SVB accounts. Immediately take most of that cash and open an account at another bank. Doesn’t really matter which one - pick a bank convenient to you. Keep that cash available for payroll.
Call every other vendor you have, let them know of your situation, and negotiate for some additional time to pay any amounts you owe them. Whatever it takes to conserve your cash on hand. If you thought cash flow was tight before, you will need to make it even tighter than that for a while.
Whatever invoices you collect in the next couple of weeks, get that money into the new bank. You need your cash to be fully accessible again. Don’t put any more into the SVB accounts until everything is settled and you again have free access to your cash there.
If you need to make payments to SVB for any loans from them, make those payments from your SVB acccounts, even if it is in excess of the available balance. Pay them with their own funny money for the time being.
Plan on losing 3% of whatever the balance was on the bank’s books as of last Thursday evening. That’s gone. Don’t fret over it, don’t think you can change it, don’t waste any emotional capital on it at all. That is your tuition in this practical course on banking.
Then get on with whatever your business is about. Frankly, after reading the home page on your web site, I have no idea what you do. I think you might help handle the personal lives of rich people. Maybe. Or maybe you just have photos of people relaxing in various and sundry places. I’m not really sure. But I’m an accountant, not a marketer, so perhaps my observations on that particular subject aren’t that useful.
At any rate, deal with this bump in the road and get on with the business of your business. And always have a deposit relationship with two different banks. Never promise an exclusive relationship with any bank. Because you are always going to be the small fry and they are the big fish. They will stomp on you without hesitation if it makes them a buck or improves the odds of their survival. You need two different banks to help improve the odds of your own survival.