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.
Investing your company’s surplus cash
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).
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.
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.
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.
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.
If you want to put your company's cash to work, this guide gives an overview of how you can improve the overall wealth of your business, by investing your company’s surplus cash.
The options covered in this guide include
Commercial property, Buy-to-let, Company pension contributions, Bonds, Lending against property