{"id":13701,"date":"2023-08-14T14:07:20","date_gmt":"2023-08-14T14:07:20","guid":{"rendered":"https:\/\/presspay.ng\/news\/?p=13701"},"modified":"2023-08-14T14:07:23","modified_gmt":"2023-08-14T14:07:23","slug":"a-small-business-owners-guide-to-managing-funds-and-investments","status":"publish","type":"post","link":"https:\/\/presspay.ng\/news\/a-small-business-owners-guide-to-managing-funds-and-investments\/","title":{"rendered":"A Small Business Owner’s Guide to Managing Funds and Investments"},"content":{"rendered":"\n

As a\u00a0small business owner<\/a>\u00a0grows over the years, one aspect of finance that they often overlook is that of the ability to use investments as a means of growing revenue, increasing net worth and building the overall financial security of their business. The majority of small business owners don’t even think about this course of action because they don’t know about it, because they don’t think that they can qualify for it, or because they are unfamiliar with how it all works.<\/p>\n\n\n\n

As of this writing, Q4 2022, rates are moving upward, which makes a larger purchase more expensive for a small business, and it also increases the cost of carrying balances on things like credit cards or other lines of credit. However, savings accounts and CDs will do better \u2014 but all of this could change and most likely will. So, the question becomes, how do you take advantage of this style of opportunity? And did you know that your bank, just like Key Bank’s liquidity management solutions, is designed to help you efficiently manage your short-term or long-term\u00a0cash balances<\/a>?<\/p>\n\n\n\n

When a small business owner is newer to this type of funds management method, going basic, short-term, is a great way to start. Maybe once there is a comfort level, you can look at more long-term aspects.<\/p>\n\n\n\n

1. Short-term<\/h2>\n\n\n\n

Short-term is just what it sounds like, but what that translates to (for normal people) is a year or less. This can be very beneficial for many small businesses as having funds tied up for a period longer than a year can often cause a negative impact on the annual fiscal operations of a business.<\/p>\n\n\n\n

Short-term<\/strong> cash balances can be managed in three ways:<\/p>\n\n\n\n