Surplus corporate funds? Concerned about potential negative interest rates? Traditionally, companies with cash surplus to normal working capital requirements placed those funds on deposit. However, with record low interest rates, company directors could be increasingly concerned at the very poor returns available on deposit accounts. And with some banks threatening to charge a negative interest rate to hold money, potentially this is not good news for companies with surplus cash sitting in these types of accounts.
Company investments – is there a solution?
Are you looking for growth potential, with some protection against market volatility? Access to money when you need it? In a tax-efficient manner?
If so, there may be a a range of investment solutions that may help,
Obviously the value of investments can go down as well as up and investors may not get back the full amount of their original investment. However, that should not preclude the idea of looking into the options.
Why a bond for a company investment?
This has become a topical area of interest to consider for company investments.
If you would like to know more about:
• Why it might be a good idea to consider a bond for surplus cash
• Tax treatments of a company owned bond
• Different accounting methods
Contact Optimum. Your local specialist Independent Financial Adviser.