6 Ways for Your Business to Spend Surplus Cash


If you are in the fortunate position to have surplus cash for your business, you may be wondering where to spend it.

Should you plow it all back into the business? Make a donation to charity? Or maybe just spend it all on an epic work party? (Maybe not that last one!)

Here are six ways for your business to spend surplus cash, with options for those who like to save and those who prefer to splurge.

  1. Put it in a high-interest savings account

If you want to make sure your surplus cash works hard for you, your best bet is to put it in a high-interest savings account. You will be pleased to hear that savings rates are at the highest they have been for years, meaning you are guaranteed to see a good return on your investment.

  1. Invest it back into the business

If you want to grow your business, then you may want to invest some of the surplus cash that you have back into your business.

For example, you could spend it on new technologies that can streamline operations and make your business more productive. Or, if you are in need of new equipment or machinery that could make your employees more efficient, then spend the money there.

  1. Make a charitable donation

Another good option is to use some of the money to make a charitable donation. Not only does this enable you to give something back, but it can also help to reduce your business taxes, as charitable donations are tax deductible.

Just make sure that you itemize your donations, as this will ensure they are deducted from your total tax to pay.

  1. Pay more into your pension

When it comes to pension contributions, you can never pay enough into your savings pot, so if you have any surplus cash, why not redirect it this way?

Not only can you benefit from tax relief, which is dependent on how much income tax you pay, but you can also enjoy peace of mind that you have enough saved for a comfortable retirement.

  1. Withdraw it as income

In the beginning, many new business owners cannot afford to pay themselves much of a salary. If this was the case for you, then you are well overdue a bit of a reward for all your hard work.

If you have surplus cash and you don’t need it to improve your business, there is nothing wrong with withdrawing some as additional income for yourself.

  1. Make a company-to-company loan

Do you work closely with another business or multiple businesses? If yes, and they are in need of an injection of cash, then you may want to consider getting into company-to-company loans.

Providing you with the unique opportunity to help other local businesses and to generate more money from your surplus cash, this is a good option for business owners who are willing to take a risk.

Leave a Reply