Short term cash flow for Your business

As a business owner, you will know the importance of having enough money on deposit to cover day-to-day costs.

Often, surplus made from successful trading and unspent or uninvested profits will be left on deposit.

This rainy-day money is a source of comfort to your business.

You might keep these funds on Treasury Reserve (short, specified terms such as one week or one-month deposits with a slightly higher interest rate). Equally, you might keep them on deposit or Capital Reserve and possibly even in a current account.

It’s important to calculate day-to-day financial activity accurately. And your rainy-day fund must be able to cover any unexpected costs.

You can then invest anything left over tax-efficiently, and with one eye on longer term financial security.

This could help achieve:

  • Diversification from a pure deposit – depending on your attitude to risk, other forms of revenue and other relevant factors.
  • Less tax on your investment.

We can help you think about this and reconsider your rainy-day fund.

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.