Short term cash flow for Your business

As a business owner you will know the importance of ensuring that there is enough money on deposit to cover the day-to-day costs of the business.

Often, surpluses generated through successful trading and unspent or uninvested profits will be left on deposit.

This ‘rainy day’ money is a source of comfort to the business.

These funds will frequently be held on Treasury Reserve (short, specified terms e.g. one week, one-month deposits with a slightly higher interest rate) but sometimes may be on deposit or Capital Reserve and possibly even in a current account.

It is important to accurately calculate the actual day-to-day financial requirement of the company and the ‘rainy day’ fund required to cover any potential unexpected costs.

Any surplus could then be invested in a tax-efficient manner with a view to longer term financial security.

This could help to achieve:

  • diversification from a pure deposit – subject to your attitude to risk, desire to seek such returns other than pure interest and other relevant factors*
  • a reduction in taxation on your investment.

We can help you to calculate the necessary day-to-day costs of the business and tax-efficiently invest any surplus money, according to your attitude to risk and the taxation of corporate investments.

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount initially invested.

*Equities do not have the security of capital which is characteristic of a deposit with a bank or building society, as the value and income may fall as well as rise

The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.

Got a question?

If you would like to speak to us about a particular issue or wish to find out more about the specialist advice services we offer for business owners, please get in touch.