Investing your company's cash: a complete guide

Summary table of the best investments for your company's cash flow

Understanding key criteria such as the liquidity the performance the risk and the investment horizon is essential before choosing an investment for your company's cash flow.

The following table will help you compare the different solutions available.

Why invest your company's cash flow?

Leave your excess cash on a current account unpaid can have negative financial consequences.

Inflation reduces the real value of your funds And the lack of returns prevents you from optimizing your financial situation.

For example, if inflation is 2 % your capital remains at a standstill, when it could be generating additional income in suitable investments.

Investing cash also allows you to valorize your surplus while offering you opportunities to diversification and risk reduction .

Optimizing cash flow can also improve your profitability over the long term, contributing to company growth .

9 investment solutions for businesses

Here are 9 investment solutions to choose from:

Open a Hero pro account

The Hero pro account features up to 3%, calculated daily and paid monthly. This attractive rate is one of the major advantages of this product.

What's more, it offers total liquidity . You have access to your funds at any time with no time limit.

Unlike other low-risk investments with lock-in periods, the pro Hero account allows you to carry out your day-to-day transactions (transfers, payments, direct debits) in the same way as a standard business account.

This product combines attractive performance and maximum flexibility, ideal for companies seeking to optimize cash flow without sacrificing availability of funds.

Term account

Le term account is a fixed-term banking product in which the company invests its capital for a specific period of time These can range from a few months to 5 years.

The interest rate is guaranteed and does not vary during the term of the investment.

It's a secure investment because the capital is guaranteed by the bank. However, funds are frozen for the entire term of the contract .

This makes the term account a solution for companies that don't need immediate access to capital. The term account allows you to secure part of their cash flow while offering a stable return.

However, the major drawback remains limited liquidity. The company will not be able to withdraw its money before the end of the term, under penalty of paying a penalty . It's a perfect product for cash surpluses not required in the short term.

Money market and bond funds

Money market and bond funds short- to medium-term investments in low-risk debt securities such as treasury bills or certificates of deposit.

These investments are considered secure and highly liquid to recover funds in 24 to 48 hours in case of need .

Yields vary between 0.5% and 2% depending on market conditions and underlying assets.

They are therefore an ideal option for companies in need of flexibility while making part of their surplus cash work for them.

The main drawback is often modest returns . However, the safety and rapid liquidity make it a preferred choice for companies with low risk tolerance.

SCPI and OPCI (commercial real estate)

Visit SCPI (Sociétés Civiles de Placement Immobilier) and OPCI (Organismes de Placement Collectif Immobilier) allow you to invest in real estate without having to manage property directly.

SCPIs invest mainly in commercial buildings or residential. OPCIs, on the other hand, take a more diversified approach, including financial assets such as shares or bonds .

This enables them to offer greater liquidity (OPCIs can be redeemed within 90 days, compared with several months for SCPIs).

Visit SCPI generate regular income through rental income, with yields of between 4 % and 5 . However, they do offer liquidity lower because shares have to be resold on the secondary market.

Visit OPCI generally offer slightly lower yields, but a higher quality of life. greater flexibility in terms of redemption. The return is 3 % à 4 %.

These investments are particularly suitable for companies seeking to diversify their portfolio with real estate assets while maintaining a high level of profitability. stable performance but with a certain exposure to real estate risk .

Professional surplus account

Le professional surplus account is a solution offering a short-term interest-bearing investment with competitive rates often between 0.5 % and 1 % . One of the main advantages is the immediate liquidity . The company can withdraw or transfer funds at any time without penalty.

This option is therefore ideal for companies looking to optimize their short-term cash flow without tying up capital.

Ease of use is also a strong point. This is a business current account that works like a classic account, with the difference that the balances are remunerated.

Although it offers perfect liquidity and a certain degree of profitability, the yield remains relatively modest.

The capitalization contract

The capitalization contract is a long-term investment, enabling the company to capitalize on its funds.

It works like a life insurance for individual investors. It allows you to invest in a wide range of financial instruments:

• Euro funds

• Actions

• Obligations

• Etc.

Yields generally vary between 3 % and 5 . Le partial or total repurchase is possible provided it is carried out in a 5 to 10 years .

This investment is ideal for companies seeking to increase the value of their cash on hand. long terme while benefiting from contract flexibility and tax advantages .

In fact, the gains made are as long as the capital remains invested.

The share account

Le trading account allows you to invest directly in actions , obligations or investment funds .

This type of investment is highly flexible and enables choose from a wide range of financial instruments.

However, yields can be volatiles depending on market conditions. Gains (dividends or capital gains) are subject to tax. corporate income tax (IS) ( 25 % ).

Companies can use a securities account to diversify their portfolio and potentially higher returns than other low-risk investments. However, this type of investment is riskier, with a higher direct exposure to financial market fluctuations .

Which is the best broker for a stock account?

Recommended brokers include, Interactive Brokers is a popular choice for its intuitive platform and competitive costs .

It enables flexible, diversified investment portfolio management.

Structured products

Structured products are financial instruments whose returns depend on the performance of specific markets or indices . They offer higher earning potential ( approximately 5% to 8% ), but also involve higher risk linked to the underlying asset.

This type of investment is aimed at companies willing to accept moderate to high risk in exchange for higher returns. It is therefore a long-term investment.

Direct investment in internal projects

Investing directly in in-house projects (purchase of equipment, commercial expansion, R&D) can enable the company to increase the value of its capital while supporting its growth. growth .

This type of investment is particularly attractive for companies seeking to strengthen their business .

However, this option presents operational risks associated with the success of the projects undertaken, and funds are often long-term assets .

Criteria for choosing the right investment

When selecting an investment for your cash flow, there are several criteria to consider:

Liquidity

Some investments offer immediate access to funds, while others may require a lock-in period.

Companies with frequent cash needs will prefer investments accessible at any time . On the other hand, those with surplus cash will be able to afford less liquid but higher-yielding investments.

Performance

depending on the investment chosen, the return may vary, with solutions offering fixed rates or variable rates. higher but variable yields .

An SME looking to secure its capital will opt for a euro fund, while a large company with surplus cash can diversify with bonds or structured products.

The level of risk

Each solution has a different risk levels from totally secure to more volatile investments.

A fast-growing startup with a need for rapid cash flow will prefer safe investments . On the other hand, a large group with stable cash flow will be able to afford a large share of the Group's sales. more volatile investments .

The time horizon

Depending on your needs, you'll need to choose investments that are suitable for short-, medium- and long-term horizons .

A company that needs to finance a short-term project will prefer liquid investments .

However, a company with a long-term strategic vision will be able to diversify its portfolio with assets that perform better over the long term. long terme .

How are investments taxed for businesses?

Visit interest generated by investments such as term accounts the money market funds or the structured products are subject to corporation tax (IS) .

The applicable corporate income tax rate is currently 25 % in France.

Are there any exemptions?

Yes, certain exemptions are possible in specific cases:

• Solidarity and SRI funds Tax reductions to encourage responsible investment.

• Innovative SMEs and startups (JEI) partial or total exemption from corporation tax if funds are reinvested in innovation.

• Companies in assisted zones (ZAFR, ZFU, ZRR) Tax benefits to support the local economy.

• Associations and cooperatives Exemption possible if interest is used to finance the company's social mission.

Discover the Hero pro account: profitable, liquid, secure

Le Hero pro account is an ideal solution for companies seeking to optimize their cash flow with rapid access to their funds. With a rates of up to 3%. it offers a competitive performance and a total liquidity .

It's a simple, flexible option for maximizing surplus cash without compromising the availability of funds.

In short, investing your company's cash flow can enable you to maximize your returns of diversify your risks and enhance the value of your funds . The solutions discussed in this guide offer a range of possibilities to meet different financial needs, whether you are looking for liquidity , safety or performance . Le Hero pro account is emerging as a particularly flexible and lucrative solution for modern companies.