Your plumbing company has been successful, and you’ve been working at advertising your business through online and traditional advertisements, and client referrals. The additional work comes with an extra flow of income, which now you’re looking at options for how to put that money to work.
Read on as we break down treasury management and how to manage your cash to benefit your plumbing company in the long-term.
What is Treasury Management?
Treasury management is more than just cash flow. The term also entails the management of a company’s daily cash flows and larger-scale investment decisions. Because when looking at your business’s finances, we want to know that the cash sitting in your bank account is being used productively.
Options
Traditional treasury management is about putting excess cash into high yield savings accounts. However, during times of low interest rates, there are limited options for that capital to stay productive.
During periods of high inflation, treasury management becomes ever more important. As a business owner, your job is to make sure that your treasury keeps up with inflation.
In the current environment, banks offer you 1-2% interest to place your money in their savings account. If you are earning 1% on your treasury but inflation is 5%, then you are pretty much losing 4% of your purchasing power every year.
Solutions
One solution is to place it in higher yield investments. One option for this is through a savings account with Ledn.
Ledn offers an 8.00% APY return on USDC with no minimum balance and no locked-in term. This means that you can park your excess capital into USDC (backed 1:1 with USD in a bank account) and be able to withdraw it whenever you want. In the meantime, you are earning 8% APY.
How To Fund
Funding can be done using Bitcoin or USDC. The easiest way to fund your Ledn account is through PayTrie, which provides the most direct way to fund your Ledn account using Interac e-Transfer.
To fund your account, you’ll have to open an account at www.paytrie.com
Once you’ve completed the registration, you can choose the amount that you would like to send to Ledn. In the example we’re using, if you would like to send $2500 CAD, you would end up with 1971.59 USDC. This rate will shift according to the exchange rate of CAD to USD and also according to the gas prices. You can also save a little money by timing your purchase when gas prices are lower.
After clicking Swap, you will need to enter your Ledn wallet address. It’s important you double check the wallet address to make sure it matches with the wallet address Ledn provides. You can also choose to leave the “Add some ETH to this transaction” box unchecked, as this is optional.
Next, PayTrie will send a Request Money Transfer to your email requesting the amount you’ve booked (in this case $2500). You’ll need to log in your bank account and choose “accept”. Once the eTransfer is received by PayTrie, the USDC will be sent directly to your Ledn account. They say that the first transaction can take up to 24 hours, my first transaction took a little longer than an hour. Transactions I’ve made after that have taken under an hour to complete.
Once the USDC is in your Ledn account, you can choose to either start earning interest, or trade for Bitcoin and start earning interest/borrow off the Bitcoin.
