A business’ choice of investments will depend a lot on its circumstances. These considerations are:
- How long you plan to invest for
- The level of return you want to chase
- How actively you want to manage the investments
Generally speaking, business owners will favour shorter-term investments because it can be difficult to predict when you might need to use some of the cash. They’ll also want to avoid any unnecessary risk to their hard-earned business income.
So, businesses often favour investments that:
- Allow them to access their cash when they need it
- Don’t come with too much inherent risk
- Offer them the chance to beat their bank rates