TheRodinhoods

Is money lying idle in your company’s current account ?

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Are you an Entrepreneur / Business Owner who has money lying idle in your company’s current account ? Just wanted to check how many of you invest that money ? Or do you just leave it lying in the current account.

Current accounts pay zero interest so essentially your money in the bank is not earning any money.

However, there are options by which you can invest them while earning returns between 9 to 15% while maintaining liquidity and at varying levels of risk. (Yes, you could do an FD but it could lock up your capital for a longer time and the interest rates would also hover around 5 to 6% )

Here is some additional context: I am involved with two companies, Experia Media and Finqa, one of which is in Digital Advertising and the other in Financial Advisory.

Experia Media had some free capital and I was wondering how to invest them for better returns as I wasn’t very happy with the money just lying idle in the company’s current account.

During a Finqa brainstorming session, I discovered that we could apply our advisory expertise to get better returns from idle funds in corporate / company current accounts.

E.g. If you have 50 lakhs and invest them with an average return of 10% per annum (after factoring in capital preservation and maintaining liquidity), that’s approximately 40k per month in extra ‘revenue’ which the bank would have earned if it was just lying in your current account.

If you had instead done a month-to-month FD to maintain liquidity, you would have earned an interest of only 20k.

Of course this scenario is applicable only if you don’t have an immediate need of the funds for your business growth.

At Finqa, we are now considering offering this service to entrepreneurs / business owners who may have idle capital in their company accounts so that it can be better utilized – Think of it as a virtual CFO for Treasury Operations at your company.

So yes, if you are an entrepreneur, could you share some feedback on the need for such a service at your company and if you would be interested, either via email at info@finqa.in or in the comments below.

Thank You