Businesses are often tied to money. However, if you are one of the few wealthy businesses, you need to think about growing your money beyond the small interest rate your bank offers. You need to think about ways in which you can spend more money to grow your money. Here are 9 things you can do with the extra money you have in your Business.
P2P borrowing
If you want higher returns than traditional bank interest rates, websites like Zopa, Funding Circle, and Ratesetter can allow you to earn up to 7%. However, you need to be aware of the risks that come with P2P borrowing before separating methods and your money. Especially with Brexit on the corner. Having a good charted professional accountant to monitor your risk and report on ROI can be one of the ways you can reduce your risks.
Separation
If you have always wanted to grow your business by separating it from other businesses, why not lend money to one of your businesses on good payment terms? Or you could invest in a hobby that you can improve and take to the next level; Loan payments can also mean setting attractive interest rates between businesses, which may mean more money to the borrower. Ask your accountant to help you build a financial model with profitable payment terms so you can decide between the various options.
Make a profit and invest in EIS / SEIS programs
You can also make extra money from your business and invest it within an authorized SEIS / EIS business. A few good places where you can find businesses to invest under these programs are Seedrs, Crowdfunding, etc. You get most of your investment in the form of tax relief. The profits made by selling stocks are also tax-deductible and you are relieved if your investment fails. Ask a competitive accountant how they can help your business qualify for SEIS / EIS.
Invest in Crypto Currencies or ICOs
If you know little about ICO or Blockchain investments you can create an investment portfolio to make a return on this investment, ICOs can be deceptive and very risky. It would be a good idea to do your research before making any investment and then hire a good tax accountant to make sure you are covered by any tax results from your cryptocurrencies. Learn more cryptocurrencies.
Invest in Build
As a lucrative business, you may consider paying for your commercial or residential property. You can get out of a vicious rental cycle and buy your own office, or lend in a place that is not allowed to make money.
The balance of the business
Invest in growth
Why not use this extra money to grow your business? One way you can make more money within the business is to invest in your company’s marketing strategy by focusing on the existence of a digital business using things like SEO Company in Calgary. Search Engine Performance can help by improving the online business presence, which has led to long-term growth. You can also look for additional clients by doing some paid advertising. Hiring a business development can also mean growing the business faster by having an expert on the board.
Pension Pot
Investing in a pension fund can be very profitable and can make your savings grow faster, as pension contributions also provide tax relief. Pensions will basically be your long-term savings plan for tax. Generally, you can get money from your pension fund at the age of 55. You need a competent accountant to help you reduce your pension, make sure you talk to someone to arrange effective tax deductions.
Invest in Bonds
A bond similar to the IOU is a fixed instrument representing a loan granted to an issuer of bonds for the purpose of investor commitment. Bonds are usually less risky than investments. There are two ways to invest in bonds, the first is to invest in the bond until you mature while collecting interest rates on it, and the second is when you profit by selling the bond at a higher price than you bought it.
Buy Businesses
What better way to beat your competitors than to buy their business? Finding your competitors is a quick strategy used by many businesses to beat their competitors and get their intellectual property. The process itself can be complicated and expensive, but once you are done you can add instant growth to your customers, revenue, and your intellectual property. You will need an accountant, attorney and real estate agent to assist you in finding, informing and purchasing a business.
