OpenAI CEO Sam Altman sent startup six-figure loan after SVB collapse

Post by Tarq0n » Mon, Mar 13, 2023, 9:28 AM UTC

inconceivable wrote: post #46

gfsdgsfgfds wrote: post #12

Just one anecdote of many. I'm a founder of a bootstrapped startup. We are/were with SVB. On Thursday I tried to get a Brex cash account setup to move some operational cash there but it didn't happen in time. I thought of wiring money out of SVB to my personal account but decided it felt too dodgy. Payroll for 2 weeks ending March 15th had to be funded through Gusto by tomorrow (March 13th). So I did all I could do w…

i had to do this once during a clerical fuckup with our payroll provider. the accountants just classified it as a reimbursed expense. you just comp yourself the exact same amount as the payroll and it isn't taxed as income. in general accountants have ways of dealing with all sorts of edge cases, but you need to keep REALLY good documentation and notes about what/why/how, etc. "i thought the bank was going to collaps…

Post by moomoo11 » Mon, Mar 13, 2023, 2:40 PM UTC

rdl wrote: post #49

roboy wrote: post #41

Q from outside the US: why is capital needed for payroll mid month? Are there some automatic insolvency processes if it is missed by a day? Why do the companies fall apart if there is just a few days of payment delay? (I mean it is obviously a shit situation, and having to tell the team payment might take a few days more than usual is bad, I am just surprised how 2 days of no-cash seem to wreak havoc…)

Most companies in the US do payroll on either a 2 week cycle (which sucks because some months you do 3 and some times you do 2), or 1st and 15th (or otherwise twice a month). March 15 is a very common payroll date. They're batch processes, done by dedicated payroll firms, since there are lots of tax/other obligations as well. Missing payroll by even one day causes 1) lots of drama with employees 2) starts some legal…