New fintech helps businesses grow idle cash into earnings—without changing their bank.
For decades, small business owners have lived with an uncomfortable trade-off keeping cash in checking accounts that earn next to nothing, or locking it away in savings accounts that complicate their day-to-day operations.
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It’s a dilemma Bruce Hrovat, founder of LiaFi, knows all too well. “Most businesses keep more cash sitting around than they actually need for daily operations,” he says. “That extra money is an opportunity and it should be put to work.”
With that mission in mind, LiaFi, in partnership with Magnolia Bank, has built a simple yet powerful solution. The fintech platform helps small businesses earn a 2.50% annual percentage yield (APY) on surplus cash while still keeping their existing bank accounts and daily payment systems exactly as they are.
No switching banks. No complex setup. No trade-offs.
For years, traditional banking products forced small business owners into an either-or decision. Checking accounts were convenient but paid an average of just 0.07% APY, while higher-yield accounts tied up funds and came with strict limits. Most business owners chose accessibility over returns — a practical decision to keep their operations smooth, even if it meant their money wasn’t working for them.
LiaFi changes that. Its platform allows businesses to separate yield from operations, automatically moving idle cash between cycles—like the days between payroll runs or vendor payments—into the LiaFi Business Account, which is FDIC-insured through Magnolia Bank, Member FDIC. The funds earn a healthy 2.50% APY, and when it’s time to make payments again, the money flows right back into the business’s checking account.
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“It’s not about taking risks or timing the market,” Hrovat explains. “It’s about earning a fair return on money you already have.”
The difference can be significant. For a business that keeps thousands of dollars in its account throughout the month, those extra interest earnings can help cover marketing costs, software subscriptions, or even new equipment. Every bit counts, especially in an economy where small businesses are fighting to stretch every dollar further.
What makes LiaFi’s approach truly different is that it works with banks, not against them. Instead of asking business owners to uproot their finances, LiaFi complements existing banking relationships, removing the hassle of changing institutions or retraining teams. “We’re not asking businesses to choose between their current bank and better yields,” Hrovat says. “With LiaFi, they can have both.”
Since Regulation Q was repealed in 2011, banks have been free to pay interest on business checking accounts — yet, 14 years later, most still offer an average of just 0.07% APY. LiaFi delivers what that change was meant to bring: a way for small businesses to earn more on their money without losing control of it.
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In the end, LiaFi’s message is simple:
Small business owners shouldn’t have to choose between accessibility and earnings. With LiaFi, they finally get both flexibility for today and growth for tomorrow.
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