New Ramp Treasury Cash Management
A press release titled, "Ramp Launches Ramp Treasury: Cash Management that Maximizes Every Dollar with Minimal Effort" tells us, "Leading financial operations platform Ramp ... introduced Ramp Treasury, a new solution that radically improves how most businesses store and manage their operating cash. With Ramp Treasury, businesses can store cash in a business account that earns 2.5%1 or in an investment account with the potential for higher yields -- all within the same platform they already use to pay their bills. This allows businesses to: Earn 35x more on operating cash in a Ramp Business Account than the national average. Get ~3 extra days of working capital and incremental earnings by paying bills the day they're due. Let AI handle the rest with automated balance alerts and liquidity forecasting. Ramp Business Corporation is a financial technology company and is not a bank. Bank deposit services provided by First Internet Bank of Indiana, Member FDIC. API Services for the Business Account provided by Increase Technologies, Inc." The release explains, "The Investment Account is not a deposit account, not insured by FDIC, and may lose value. The launch is part of Ramp's ambitions to automate more areas of the financial tech stack beyond payments, help companies achieve more with every dollar and hour, and create a world of self-driving finance." Eric Glyman, CEO of Ramp, comments, "The old treasury playbook meant either constant micromanaging of cash positions and payment dates ... or just accepting you'll lose out on interest. The new playbook is refreshingly simple: let technology do the heavy lifting, so you don't have to. This is why we created Ramp in the first place. We find every cent you deserve so you can focus on moving your business forward. It's all about the timeless principle of making every dollar and hour work harder, and go farther." The release adds, "Businesses face a tough choice when it comes to managing cash: they can either maximize earnings or have quick access – but not both. This often requires finance teams to keep money in accounts that earn low or no interest for easy use, or lock it away in higher-yield investments that are cumbersome to access. This trade-off is why over 80% of businesses' operating cash is stored in a bank account that doesn't earn anything. On top of this, ~3 days of working capital and incremental earning potential is lost waiting for transferred funds to settle with their vendors. Companies shouldn't have to choose between growing cash and having access to it. Now, they no longer need to. Ramp Treasury is uniquely structured to pass maximum value back to businesses, so they earn more on operating cash without sacrificing liquidity. Businesses with $1 million in operating cash in a Ramp Business Account could earn more than $25,000 by the end of the year – compared to just $7004 at a traditional bank – all while maintaining instant liquidity for bill payments. That same business can also place excess cash in a Ramp Investment Account currently earning 4.38%, with no account opening or management fees, no deposit minimums, and no withdrawal restrictions."
