Professional surplus account: maximize your cash flow with Hero

What is a professional surplus account?

There are situations when a company's cash position is in surplus, so that there are funds left over after all its expenses have been paid. In other words, the company's income is here than its output .

An analysis carried out in 2023 by Eurostat reveals that almost 45% of SMEs in Europe have unused surplus cash, representing a profitable investment opportunity to optimize their financial management.

A business surplus account is a bank account where unused funds are temporarily deposited, while earning interest and remaining easily accessible. It is therefore an interest-bearing account .

In other words, instead of letting your surplus "sleep" in your current account, depositing it in a professional surplus account allows it to grow.

This means a type of short-term investment which enables the company to make the most of its surplus cash while ensuring that it is readily available.

What are the advantages of a professional surplus account?

Using a business account offers a number of advantages:

High security with capital guarantee

Funds deposited in a business surplus account are not subject to market fluctuations or to the risk of capital loss.

Some accounts come with low-risk investment guarantees. This account is separate from the operating accounts, which is all the more reassuring.

Compensation

That's why it's a good idea to place your available funds in a professional surplus account. This is an account that generates interest calculated and paid at regular intervals.

So it's a way of maximizing your company's profitability by generating money without extra effort.

Flexibility

Unlike term accounts, professional surplus accounts offer great flexibility. You have access to liquidity at any time . You can make withdrawals or transfers as often as you like, without incurring penalties.

This ensures efficient cash management with the flexibility to meet your financial needs at any time.

Professional surplus account vs. term account

Term accounts are an alternative way of investing a company's surplus cash.

These are a savings account in which funds are held for a predefined period in return for fixed or variable remuneration .

Here's how it differs from the professional surplus account:

• Availability of funds . Funds deposited in a term account are blocked for a pre-determined period. It is still possible to make an early withdrawal, but this entails the payment of penalties.

• Compensation . In return for blocking the funds, the term account offers higher interest rates than for a professional surplus account .

• The objectives . The professional surplus account is adapted to invest short-term surpluses . On the other hand, a term account is preferable for invest money that the company does not need in the short term.

What is the return on a professional surplus account?

According to a study by Banque de France The gross annual return on corporate passbook accounts is generally between 0.2% and 1%, which makes the 3% return offered by Hero particularly competitive.

Hero solutions for a professional surplus account

Hero offers a solution dedicated to optimizing the management of a company's surplus cash.

How it works: 3% annual return with Hero

Hero's professional surplus account offers an annual yield of 3%. However, interest is calculated per day and paid monthly .

Let's assume that the amount deposited by the company is 50,000 euros. The remuneration is therefore 50,000 euros x 3%/365.

Daily interest is therefore around 4,10 euros.

No tied-up funds and maximum flexibility

With the Hero account, the amounts deposited are available at any time. You can remove them as required . We offer you maximum flexibility, with no penalties.

What criteria should you take into account when choosing your professional surplus account?

Here are the criteria to consider before choosing your professional surplus account:

The rate

We have seen that the reason why a company may want to open a professional surplus account is to the prospect of growing surplus cash .

As a result, the interest rate offered by the solution plays a key role in the choice of formula.

The higher the interest rate offered, the better your chances of making a profit.

So think about compare the rates offered by the different formulas . You also need to pay attention to calculation frequency . Is interest calculated annually, quarterly, etc.?

As a short-term investment solution, remember to opt for monthly payment plans. Also, regardless of the length of the investment, the funds will have been able to generate interest based on the number of days deposited.

Access conditions

You must also pay attention to access conditions . Is there a minimum amount required to open an account?

Some establishments or solutions require a minimum threshold for opening a cash surplus account. Others apply a deposit limit .

So remember to check these different thresholds to make sure the account is right for you.

Any expenses

Are there any account opening or maintenance fees? Are there any transaction fees?

This is also a criterion you need to ensure in advance. To optimize your yield, you need to anticipate these costs and compare the different formulas available .

Who can open a Professional Surplus Account?

The Professional Surplus Account is designed for companies that meet the following conditions:

• Be a professional customer of the bank

• Hold a business current account.

Some establishments require a minimum cash flow threshold to open a cash surplus account.

In addition, the company must have surplus cash and that liquidity is available in the short term.

How is interest taxed?

Interest generated by a cash surplus account is taxed in the same way as profits, just like any other financial product.

What types of funds are suitable for a Professional Surplus Account?

The funds suitable for a cash surplus account are funds the company doesn't need right away .

The advantage of using this type of account lies in the prospect of being able to generate interest. The sums must therefore be immobilized for a reasonable length of time to make this possible.

On the other hand, if the company is doing well and surplus funds can be tied up for a longer or shorter period, it's better to turn to a term account. In this case, the interest rate is more attractive.

Simplify your cash management with Hero today!

Hero also offers a cash surplus account for small and medium-sized businesses. With an annual yield of 3%, interest is calculated daily but paid monthly.

Other account features include

• No deposit duration requirements . Interest is calculated per day.

• Funds available at any time .

To open an account, you must ;

• Get a free Hero pro account

• Make at least 5 card payments

In short, opening a professional surplus account is a way of optimizing a company's cash management.

It's a secure strategy for generating interest on unused cash instead of letting it languish in a current account. With Hero's Professional Surplus Account, you can generate an annual return of 3%.