Passing on your business to a third party or within your family is a crucial stage in the life of your company, just as taking over a business marks the start of a new life for a business owner. At Spuerkeess, these two important steps are taken with the advice and support of dedicated experts. Whether you are the assigner or assignee, our experts Johny Basher and Franck Alter, both business transfer advisers at Spuerkeess, reveal the keys to a successful transfer in this article. Happy reading!
3 interesting alternatives to traditional savings for your business
Given that interest rates remain high and investing your funds in savings accounts doesn’t bring you enough interest, what can you do, as a business, with your excess liquid funds? In this article, Jean-Luc Bermes, Corporate Banking at Spuerkeess, gives you three alternatives to savings that are highly appealing to businesses. Happy reading!
Why is it important to invest your liquid funds?
The interest rate of a current account is 0%; therefore, by placing all your liquid funds in such an account, you miss an opportunity to benefit from additional interest.
Indeed, once you have created a plan for your liquid funds, it is largely to your advantage to place the excess in your savings account, which is more remunerative than your current account. However, several other alternatives exist with even more appealing remuneration in terms of interest, and with little risk appetite.
Business savings account
The business savings account is an open-ended product from which it is possible to debit and credit funds at any time. This sight savings account for businesses is suitable both for excess liquid funds in euros over a short term, and over a medium term, with immediate availability.
Deposit account
The deposit is an alternative to the savings account which offers you the same guarantees in terms of recuperation of the initial capital, and therefore does not entail any additional risk. Moreover, the interest rates generated are positive, attractive and vary depending on the deposit duration that you choose. For example, a deposit account is flexible due to the fact that the deposit is made over a short period, ranging from one to two weeks and from one to 12 months, while the fixed rate deposit can extend up to 10 years. During the period that you select for the deposit, you will not have access to your funds.
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You will need to access your money in the next 12 months…
If you have projects in the very near future, such as the purchase of equipment or new fixtures for your business, but in the meantime you wish to benefit from attractive interest rates on your liquid funds (minimum EUR 10.000), opt for a term deposit account. You can therefore deposit your money over a short term, ranging from one month to 12 months.
This flexible solution allows you to access your money at any time while benefiting from interest.
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You won’t need to access your money in the next 18 months or longer…
Instead of leaving your liquid funds dormant in your current account or savings account for the next 18 months or longer, opt for a fixed rate deposit. You thus select the term most adapted to your needs, ranging from 18 months to 10 years, and benefit from an appealing fixed rate.
This solution allows you to benefit from a more appealing interest rate than the one offered by a traditional savings account.