Optimize surplus liquidity with financial investments
Financial investments in business assets can offset the adverse consequences of negative interest rates. First, the exact amount of surplus liquidity in the company is defined. This depends on various factors, such as the liquidity requirements for general business performance, the distribution policy, the capital requirements for planned investments, or the necessary strategic and operating reserves.
The investment strategy can then be selected. Here, it is important to take account of the special characteristics of such investments as well as the differences between these and private investments. Investment decisions involving business assets should follow internal investment guidelines that factor in business performance and corporate goals. Of further note are comprehensive bookkeeping obligations for each transaction and the tax differences with private investments. For example, capital gains are not tax free for business assets, but losses carried forward can be balanced out with any profits for up to seven years.