In an economic environment marked by market volatility, interest rate fluctuations and political uncertainty, corporate cash management is a key issue. Cash surpluses are a strategic asset that can help improve a company's financial results and balance sheet strength. Common solutions include term accounts, ordinary securities accounts, capitalisation contracts and investment in real estate investment trusts (SCPI). Each has its own specific advantages in terms of return, liquidity and taxation, so how do you choose?

Term accounts

Term accounts are one of the simplest instruments for earning interest on temporary cash surpluses. They are based on a clear principle: capital is locked in for a fixed period in exchange for a rate set in advance in the contract. This mechanism offers complete transparency on future returns and eliminates any volatility linked to the financial markets. It is therefore designed to secure capital, and is particularly suitable for identified one-off surpluses. Funds are unavailable during the commitment period, but can be withdrawn early, subject to a penalty. As the return is linked to money market rates, yields may be relatively low.

Securities account

A securities account gives a company direct access to the financial markets without any specific tax envelope. It offers considerable freedom of allocation and daily liquidity of assets. Through this vehicle, the company can invest in:

• listed shares

• sovereign or corporate bonds

• ETFs and UCITS

• monetary or bond instruments

It can also benefit from a management mandate allowing active management of funds or securities. This flexibility makes it possible to develop an allocation strategy consistent with the investment horizon and the level of risk accepted. The securities account is therefore part of an active management approach, aiming for higher performance than purely monetary investments, but with a certain degree of volatility.

Capitalisation contracts

Capitalisation contracts taken out by legal entities subject to corporation tax are an intermediate solution between financial investments and wealth structuring tools. They allow investment in a wide range of financial instruments, including euro-denominated funds, bond or equity funds, diversified funds and structured products, within a single envelope. Unlike securities accounts, the products are capitalised in the contract according to specific rules applicable to legal entities, which can offer greater clarity over time. Its main advantages are:

• pooling of different asset classes

• managed or dedicated financial management

• tool also suitable for asset holding companies and investment companies

Its implementation requires an in-depth analysis of the accounting and tax implications.

Investing in SCPIs

Investing in SCPIs (Sociétés Civiles de Placement Immobilier, or real estate investment companies) allows a company to benefit from recurring income without having to manage the assets operationally. The company acquires shares in a collective vehicle that owns and operates a diversified real estate portfolio. This type of investment can serve several purposes:

• diversification

• seeking higher returns than monetary investments

• exposure to a tangible asset class

However, investing in SCPIs involves a more long-term approach given the liquidity of the shares.

These solutions are complementary within the framework of an overall cash management strategy. In a context where it represents a strategic lever for stability and development, structuring your investments allows you to reconcile security, performance and financial visibility. Finankap's wealth management advisers can help you develop a strategy tailored to your legal, tax and financial situation. Contact us!

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