Business investment options
Some business owners may have a large amount of surplus cash in a bank account. After exploring remuneration options you could look at investing some of that surplus cash. If you think about it logically, if you made a personal investment you would need to draw down income from your business, you and the business would pay tax on this income and then you would make the investment. An investment via the business doesn’t have those tax implications, however it would be the business that owns that investment, with yourself as a shareholder.
Allowing profits to build up in a business account means the money isn’t actively working hard enough for you or the company. Investing surplus cash could give your business an additional revenue stream, which could be reinvested in to your business. Investing also gives your surplus cash a chance to grow rather than leaving it to get dusty in a incredibly low interest rate bank account that is fighting with rising inflation. As with all investments, there is a chance you could lose money but a financial adviser can work out your appetite for risk and aid you in choosing an investment right for you. Ofcourse, most business owners have a healthy understanding and tolerance of risk. A qualified chartered financial planner will help you understand the best investment vehicle for you depending on appetite to risk, when and how you need to access the money, how long you want to invest for, your approach to ethical investing and your corporate tax obligations.
There are also some tax efficient investment options that your financial adviser could talk through with you, along with purchasing property for you business via alternative structures.