Investing your company’s surplus cash

If you want to put your idle cash to work, BondMason can help.

If you’re a business owner of a small limited company, or self-employed, the chances are you don’t have time or resources to employ a Financial Director.  Here's how we can help you get your surplus cash to work harder.

Inflation-beating returns

We make it easy for investors to target attractive returns from secured lending. Since 2015, our clients have achieved average gross returns of 8% p.a1, investing over £40M across 6,000 curated loan investments, with 85% secured against UK property.

Managing risk

Achieving attractive returns from lending is about minimising the downside risks. We conduct rigorous due diligence to select our lending partners and assess every loan opportunity to make it easy for clients to build a well-diversified portfolio.

Accessing your funds

With no tie-in, you can withdraw your funds when you choose and we pride ourselves on enabling you to access your money when you want it. We aim to fully liquidate funds within 24 to 48 hours*, which we have been able to do in 100% of cases to date. 

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Improving the financial health of your business.
Investing surplus cash can significantly increase the overall wealth of your business.

When your business cash is sitting on the sidelines, you are not making the most of your investment opportunities. 
 

Imagine if you could generate a modest return that could buy you an extra 1-2 months runway. Or like several of our clients, reduce your tax bill. 

Depending on how much you have to invest, the return you make over 12 months could enable you to take some time off. 

£100k invested with returns of 6% p.a could equate to £6,000 in 12 months.  That equates to 12 days extra holiday a year (at £500/day).

INVESTMENT OPTIONS
Putting your company’s cash to work

Holding on to cash, without earning interest on it, is like throwing it away. Here are a few options for investing your extra cash. You'll need to consider your current business needs and goals for the future to determine which option(s) are suitable for your company.

Commercial Property

Of the 4,000 people surveyed by YouGov, 27% said they believed property was the best way to outpace inflation. Investing in commercial property, such as offices, supermarkets and warehouses, can grow your money through rental income and growth in the value of the property you own, but can be illiquid - meaning it can be hard to sell if you need to access your money.

Buy-to-let

A company can purchase flats and houses for investment purposes and rent them out.

Interest rates are usually higher for limited companies compared to personal mortgages and lending criteria are tighter. But if you can find good opportunities then it’s worth looking into property investment.

Lending against property

With the advent of new tax and mortgage regulations, accessing returns from buy-to-let and direct property investing is harder than it once was.  Lending provides an opportunity to earn a passive income from property, with attractive risk-adjusted returns.  BondMason has achieved a stable and steady investment track record from a conservative loan portfolio - with an average LTV of 56% - secured against UK property. 

Company Pension Contributions

Your company can make pension contributions directly into your pension fund whether it be a stakeholder SSAS scheme or a SIPP. A SSAS is a small occupational pension scheme, normally set up by the directors of a business that want more control over the investment decisions relating to their pensions. Either way, the money going into the pension is not taxed by corporation tax.

 

Bonds

If you have no immediate plans to use the company’s cash you could invest it into fixed term bonds.  Remember that once deposited the money is tied up for the whole period and there are normally penalties for wanting to withdraw the funds before the settlement date. The ISA eligible Absolute Return Bonds enable investors to target inflation-beating returns, tax free.

Don't lose out

The decision of what to invest in, requires time in research.  The danger is that if you remain indecisive and hold onto too much cash, you could lose out on missed opportunities. Property lending is seen by many investors as the middle ground between the volatility of stock markets and the security of cash.

INVESTING SURPLUS BUSINESS CASH
Property lending with BondMason

BondMason has achieved a stable and steady investment track record from a conservative loan portfolio - with an average LTV of 56% - secured against UK property. 

Investing in property lending
All of our loans are secured - with the significant majority secured against UK residential and commercial property.

We focus on refurbishment finance with loans used to fund small-scale property refurbishment, or developments.  Projects fall within the scope of permitted development, or have planning permission.

Conservative loan-to-value.  The average loan-to-value of our property loans is 56%.  Valuations are independent, typically conducted by professional surveyors adhering to red-book processes.

The BondMason Investment team reviews every loan, with only 1-in-4 loans being approved by us.

We conduct additional due diligence and verify valuations with our own research and assessments.

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tim daw
BondMason client Tim Daw invested and reduced his tax bill

Wiltshire farmer Tim Daw had extra cash after selling some land.  The sale generated a large tax bill that and Tim wanted somewhere to could keep his money for 18 months before the bill became payable.

Having researched his options, he split the cash from the land sale across several firms to diversify his risk.  He chose BondMason due the fact funds are diversified across many loans, adding an extra layer of security, as well as having the peace of mind of investing in asset-backed lending.

 

 

“Ultimately, I invested much of it through the BondMason platform and during the first 18 months that my funds were there, the returns I earned effectively reduced my tax bill by over 10%. I am now all settled up with HMRC and have continued to keep the business’s money with BondMason.  The BondMason approach is very suitable for a small business such as mine, particularly as the returns on bank deposit accounts, the main alternative, have been unexciting for such a long while.” Read Tim's story.