Options for business savings

[patrickvinquo]

I'm conducting research into how other UK businesses are trying to generate interest from their cash/ savings, e.g. business savings accounts in the UK, and whether these options are attractive. What options are others considering and why?

 

[japancool]

Business savings accounts pay next to nothing right now. Mine with Barclays pays 0.01%.

 

[patrickvinquo]

@japancool - thanks for the response. Sounds like a dissatisfying savings rate, what other options have you and others considered? Or do you just keep it in your savings account and barely earning any interest?

 

[japancool]

@japancool - thanks for the response. Sounds like a dissatisfying savings rate, what other options have you and others considered? Or do you just keep it in your savings account and barely earning any interest?

I try not to keep money in the account for too long. I put it into revenue generating streams (which, at the moment, mostly means stock).

 

[patrickvinquo]

@japancool - are you not concerned about losing your principal when using your savings? Have you looked into cryptocurrencies at all?

 

[japancool]

@japancool - are you not concerned about losing your principal when using your savings? Have you looked into cryptocurrencies at all?

No, I'm not concerned. If I was concerned about that, I wouldn't be in business.

And no, I have not looked into cryptocurrencies. Is that what this is about? A pitch for some ****** investment "service"?

 

[Mr D]

I'm conducting research into how other UK businesses are trying to generate interest from their cash/ savings, e.g. business savings accounts in the UK, and whether these options are attractive. What options are others considering and why?

I build up funds in the business then buy stock at certain times. For example Spring fair was 2 months ago so spent a lot of money in February buying stock using cash plus ordering Christmas stock for delivery in August - will have money put aside for that by then.

Generally best use of money is in stock. Turn a hundred quid into 300 plus then build on that by buying more stock and repeat. Following month carry on doing that.

****** would not be of interest as a means of having business savings. No more than the stock market, property, wine, metals or other investment methods.

Christmas is coming.

 

[patrickvinquo]

No, I'm not concerned. If I was concerned about that, I wouldn't be in business.

And no, I have not looked into cryptocurrencies. Is that what this is about? A pitch for some ****** investment "service"?

--
Nope, not a pitch - just curious as to how business owners are saving (or not) and whether people have considered ******.

 

[japancool]

Money that's doing something is better than money sitting there doing nothing.

 

[WaveJumper]

A pitch coming for investing in decentralised markets maybe

 

[Mark T Jones]

Clearly the best use for business savings is to re-invest in the business

Personally I'm going to have a bit of fun using tax rules to treat myself to a classic car on the company. If it goes up in value its an investment, if it doesn't its a bit of fun.

I'd strongly advise anyone not to use company money for highly speculative investments. If you want to take racecourse punts you should use your own cash - cash that you can afford to lose

 

[mattk]

I put £85k into a savings account and then move on to the next. The rates are terrible, but better than nothing. I have researched investing in the stock market with company money, but the perceived wisdom is that you need to set up a separate company specifically for investing.

 

[WaveJumper]

I put £85k into a savings account and then move on to the next. The rates are terrible, but better than nothing. I have researched investing in the stock market with company money, but the perceived wisdom is that you need to set up a separate company specifically for investing.

Check with your bank and see if you get a better rate with them putting your money on the overnight money market (banks lending to each other)

 

[JEREMY HAWKE]

I ask myself thid question
Will an investment generate more money than investing it back in ? Probably not unless your running at 1per cent profit

 

[mattk]

Check with your bank and see if you get a better rate with them putting your money on the overnight money market (banks lending to each other)

HSBC are very secretive about their rates, but from what I've read online it is less than 1%, which is what I'm getting with Aldermore, Virgin etc.

 

[Financial-Modeller]

Perhaps I could find an organisation with no banking experience, that could use my business as a source of cheap finance, then use my money to speculate on unregulated ******, with any upside enjoyed by that company instead of me, but with my company effectively underwriting any loss experienced by that company.

 

[WaveJumper]

Perhaps I could find an organisation with no banking experience, that could use my business as a source of cheap finance, then use my money to speculate on unregulated ******, with any upside enjoyed by that company instead of me, but with my company effectively underwriting any loss experienced by that company.

Should be written into all company business plans

 

[DontAsk]

Generally best use of money is in stock. Turn a hundred quid into 300 plus then build on that by buying more stock and repeat. Following month carry on doing that.

This ^^^

Any spare I use to draw down the DL, which owes me. Lend it back if needed and I can make 100s % rather than 1% on personal savings.

 

[Gettingthereslowly]

It is a nice problem to have.

This is what I have done so far:
Bulk buy stock/packaging etc to get better prices
Paid off higher interest bearing loans/loans with personal guarantees
Refinanced mortgaged properties with bigger deposits/equity to lower interest rates
Doubled working capital/cash in current account
Opened 1 savings account with £85k earning less than 1%
Worked hard
Maximum pension contribution £40k
Opened another savings account with £85k earning less than 1%
Worked hard
Opened a third savings account with £85k earning less than 1%
Spent some money on new machines
Paid Corporation Tax early
Called Accountant about my new found ‘problem’.......who could suggest not much more than to open a trading/investment account and drip feed money into funds (within existing ltd co - no need to set up new company)
Other than that, I could repay mortgages earlier.......but to be honest I like having the freedom that having excess cash floating about......just in case some opportunity pops up.....like another business or land or industrial unit.
Now thinking of trying to shrink my problem by taking 1 day off a week from current 7 day working.........wife will be happy.......or will she?

 

[pentel]

Called Accountant about my new found ‘problem’.......who could suggest not much more than to open a trading/investment account and drip feed money into funds (within existing ltd co - no need to set up new company)

If your company currently qualifies for Business Asset Disposal Relief (formally Entrepreneurs’ Relief) then going down this route may remove this very valuable tax break

 

[Gettingthereslowly]

I asked this very question, but he was adamant that this would not be the case, they had just sold a co with £2m in cash/funds, and £1m actual business value = £3m total sale, and HMRC had no problem signing it off (I've forgotten what the terminology is; but you can write to HMRC to get certainty of a ER prior to agreeing a sale).

His view was why set up extra co's/extra costs unnecessarily. (My accountants are part of a big firm/multi branch organisation and I'd say are very 'conservative' in there usual advice to me)

 

[DavidR123]

hi guys
looking for some advice please.
I am the sole director of a company which I used to purchase the shares of another limited company, so in effect one company (the holding company) owns the other company (subsidiary if you like).
I want to sell the Subsidiary company now but I believe if i sell it under the current structure then the holding company would pay corporation tax on the gain, then if i want to take the money from the sale out the holding company I need to then pay income tax.
Where as if i owned the subsidiary personally i would qualify for what was called Entrepreneurs relief at 10%!
any ideas if i can transfer ownership of the subsidiary to me?

 

[Nico Albrecht]

****** all the way with some touch of Ether. Return on risk is excellent.

 

[japancool]

hi guys
looking for some advice please.
I am the sole director of a company which I used to purchase the shares of another limited company, so in effect one company (the holding company) owns the other company (subsidiary if you like).
I want to sell the Subsidiary company now but I believe if i sell it under the current structure then the holding company would pay corporation tax on the gain, then if i want to take the money from the sale out the holding company I need to then pay income tax.
Where as if i owned the subsidiary personally i would qualify for what was called Entrepreneurs relief at 10%!
any ideas if i can transfer ownership of the subsidiary to me?

That's the third thread in which you've asked the same question.

 

[Paul Norman]

If I have surplus cash, the best thing I can do to get a decent return is the thing I did to make it in the first place.

I use that cash to fund the business.

Or I take a bonus.

 

[John Hemming]

--
Nope, not a pitch - just curious as to how business owners are saving (or not) and whether people have considered ******.

I do investments in various listed securities. I have not, however, considered ****** in the same sense as I have not considered poking my eye with a sharp stick.

 

[japancool]

3:15 at Aintree.

 

[Cloud Accounting]

Magic beans.

 

[Paul Norman]

3:15 at Aintree.

Best suggestion on the thread. Entrepreneurs love a bit of risk. Don't they?

 

[MarkOnline]

If your business has more cash than it needs take it out and do something with it. What you do will depend on your appetite for risk. I dont think there is any "savings" type account that will not see your principal erroded to nothing through inflation over time.

 

[MarkOnline]

If your business has more cash than it needs take it out and do something with it. What you do will depend on your appetite for risk. I dont think there is any "savings" type account that will not see your principal erroded to nothing through inflation over time.

If you put it in an interest bearing account it will probably cost more in the extra accounting fees to fill out all the additional boxes on your tax returns than the actual returns themselves.