Lower Your Company's Borrowing Costs
Jun 24, 2023

In today's high-interest rate environment, savvy businesses are finding innovative ways to offset borrowing costs. At Holdings, we're all about helping you maximize your company's financial potential. Let's explore using a high-yield cash account to significantly reduce your effective borrowing rate.
The Power of Strategic Cash Allocation
Imagine this scenario:
Your company borrows $1 million at a 10% interest rate.
Annual interest expense: $100,000
Deposit that $1 million into a Holdings Cash Account, earning 4% APY.
Annual interest earned: $40,000
The Bottom Line: Slashing Your Effective Borrowing Cost
You've reduced your effective annual borrowing cost by leveraging a high-yield cash account from $100,000 to $60,000. That's a 60% reduction!
Why This Strategy Works
Capital Efficiency: Your borrowed funds are no longer idle – they work for you.
Risk Mitigation: With FDIC insurance up to $5 million, your capital remains safe and secure.
Liquidity: Unlike investments in securities, our same-day transfers ensure your funds are always accessible when needed.
Ready to Optimize Your Borrowing Strategy?
Don't let high interest rates eat into your profits. With a Holdings Cash Account, you can turn borrowed funds into a financial opportunity. It's time to put your cash to work and watch your effective borrowing costs plummet.
Open your Holdings Cash Account today and start slashing those borrowing costs!
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© 2023-2024 Holdings Financial Technologies Inc. All rights reserved. Holdings is a financial technology company, not a bank. Banking services provided by Evolve Bank & Trust, Member FDIC
Funds deposited in your Holdings account are held by Evolve Bank & Trust, Member FDIC. The standard deposit amount is $250,000 per depositor, per insured bank, for each account ownership category. Through Evolve's Sweep Program, funds may be eligible for up to $5M in FDIC insurance. Find additional information about the Sweep Program here