Our Business Accounts help small businesses put their dormant cash to work. Rather than letting idle company cash dwindle away in current accounts, investing in low-risk stock markets funds can give that capital the chance to grow.
We spoke to two of our Business Account clients and heard about their experiences using InvestEngine.
“Creating the potential for higher returns”
Ian is Compliance and Development Officer at Ask the Boss. Founded in 2003, it has been helping SMEs with best practice back office support ever since, including financial management, accounting, budgeting and much more.
As a former financial adviser and personal investor, Ian knows that long-term investing can bring numerous benefits, including greater financial resilience and making savings go further. With this in mind, he wanted to bring those same benefits to his own company.
“Rather than leaving the company’s surplus cash in a bank account where it’s earning little to no interest, I now invest that money in the stock market via an InvestEngine business account, creating the potential for higher returns than with a traditional savings account.
“The process for this wasn’t as straightforward as it should be, as the company’s bank didn’t offer this service to small businesses, nor did other major players in the investments sector. However, after finding InvestEngine, I was able to start investing in exchange traded funds (ETFs) at low cost and low risk, ensuring the company’s surplus cash was being put to work.“
Ian’s view is that this approach makes sense for smaller businesses, especially in the current climate, and that if larger businesses are able to do this, smaller ones should have the opportunity to do so too.
“A flexible, safe option for my business”
Nigel started his business, Change Business Finance, a few years ago. Having built a career in the finance industry, he set up the business to advise other businesses on their finances and how they can best meet their funding needs.
“As a sole trader, I wanted to get the most out of my business’s spare funds and so decided to invest that money in the market rather than letting it sit dormant in my account. I specifically invested it in exchange-traded funds (ETFs) through InvestEngine. I chose to invest in this way as returns on traditional savings accounts had been low over recent years and this gave me greater potential for a better return on my money.
“Being able to check on the performance daily adds an element of ‘fun’ to investing for me and the ability to access the money at any time if needed makes this a flexible, safe option for my business. I also think that for other businesses which have surplus cash, this is a good way to make it go further, as long as they fully understand what investing entails.“
In terms of long-term goals, Nigel is now working to grow this fund and use it as a personal pension for his retirement.
Find out what InvestEngine could do for your business’ spare cash.
Important information
Capital at risk. The value of your portfolio with InvestEngine can go down as well as up and you may get back less than you invest. ETF costs also apply.
This communication is provided for general information only and should not be construed as advice. If in doubt you may wish to consult a professional adviser for guidance.
Tax treatment depends on personal circumstances and is subject to change, and past performance is not a reliable indicator of future returns.