TL;DR: An InvestEngine Business Account invests in exchange-traded funds (ETFs). Lower-risk options include Overnight Rate ETFs and bond ETFs, commonly used to park VAT, Corporation Tax money and short-term operating cash. For longer time horizons (5–10+ years), the typical range opens up to global, regional, sector and thematic equity ETFs, as well as alternatives like gold.
According to the Bank of England, £280 billion is sitting in Business bank accounts earning no interest. Small business owners should be asking the question: are you doing enough with your company cash?
InvestEngine’s Business Accounts offer a solution, they allow you to invest in the stock market, allowing you to target the kind of returns you won’t find in a traditional savings account.
One of the first questions business owners ask is a simple one: what can I actually put my company cash into? The answer is broader than most people expect, and you don’t need to be an expert to get started.
Here’s the menu, from short-term places to park cash through to long-term growth portfolios.
The building block: ETFs
An InvestEngine Business Account invests in exchange-traded funds (ETFs). These are baskets of investments that trade on the stock exchange.
Each ETF can give you exposure to hundreds (or thousands) of underlying investments, so a portfolio of just three or four funds can provide significant diversification right off the bat.
Why ETFs work well for business investing:
- Diversification by default. You’re not picking individual companies, you’re buying the basket.
- Low underlying costs. ETFs are typically cheaper than actively managed funds, so more of your company’s money stays invested.
- Liquidity. ETFs trade on the London Stock Exchange, so you can sell when you need the cash (settlement typically takes a few business days).
- Transparency. You can see exactly what’s inside any ETF before you invest.
With InvestEngine, you can choose from a wide range of ETFs covering different asset types, regions, sectors and themes, all in one Business Account.
Lower-risk options: a potential solution for the short-term
If you’re thinking about cash you might need in the next year or two – operating buffers, tax money, near-term project funds – there are options that are typically steadier than the equity market.
Overnight Rate ETFs
Overnight Rate ETFs invest in very short-dated, high-quality debt and aim to deliver yields close to the Bank of England base rate. They’re low-volatility by design and reflect interest rate changes quickly.
They’re popular for:
- Parking VAT between quarterly returns
- Setting aside Corporation Tax ahead of the annual payment
- Holding general operating cash buffers that would otherwise sit at near-zero interest in a business bank account
It’s important to be clear: these are investments, not savings accounts. The aim is steadier, more “cash-like” behaviour, but there’s no guaranteed rate and the value can still move.
Bond ETFs
Bond ETFs hold baskets of fixed-income investments. These are usually a mix of:
- Government bonds (gilts and overseas equivalents), backed by national governments and generally lower risk
- Investment-grade corporate bonds, issued by large, financially stable companies
Typically, they pay income (interest) and tend to be less volatile than equities. Their prices do move with interest rates, however. Shorter-duration bond ETFs are usually more cash-like; longer-duration ones can swing more.
Higher-risk, longer-term options: growing company cash
For money you don’t need to touch for 5–10 years or more, the equity side of the menu opens up. This is where businesses can target meaningful long-term growth on retained profits.
- Global equity ETFs. Single-fund exposure to thousands of companies across developed and emerging markets. A common core holding for long-term portfolios.
- Regional and country ETFs. UK, US, Europe, Japan, emerging markets. Useful for tilting your portfolio towards specific economies.
- Sector and thematic ETFs. Areas like technology, healthcare, clean energy, financials or AI. Higher concentration, often higher volatility.
- Alternatives. ETFs that track commodities such as gold, sometimes used as a diversifier alongside stocks and bonds.
Higher potential returns come with bigger short-term ups and downs. The longer your time horizon, the more comfortably your portfolio can ride them out.
Putting it together: how businesses use these in practice
Many business customers don’t pick one option, they blend several. For example:
- Tax money pot in an Overnight Rate ETF, set aside for the next VAT or Corporation Tax bill
- Operating buffer in short-duration bonds, providing a bit more yield than cash for money that’s likely to stay invested for 6–18 months
- Long-term growth portfolio in global equity ETFs (and a bit of gold or bonds), built from retained profits the business won’t need for years
You can also use Savings Plans to automate regular contributions – weekly, fortnightly or monthly – so investing becomes part of normal business cash flow rather than a one-off decision.
How much do you need?
The minimum investment is £100. There’s no upper limit, and the same range of ETFs is available whether you’re investing a few hundred pounds or several hundred thousand.
Getting started is easy
From Overnight Rate ETFs for short-term cash to global equity portfolios for long-term growth, a Business Account gives you the flexibility to do as much (or as little) with your company cash as you want.
The underlying tools are simple: a curated range of ETFs, two ways to build a portfolio, and no need to become an investment expert to use them well.
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.