Protecting the extra cash in your company

This blog is written for business owners of small or medium sized entities (SME’s) in the UK.

Why would you need to?

After a bumper year of growth or many years of successful trading, owner managed companies can end up with a high value of assets on their balance sheets …..(for example cash at bank, a property, investments).

Did you know the trading activity of the company could be putting these valuable assets at risk. The risks associated with trading mean that if there was any kind of claim resulting in a financial loss against your business, those assets could be called upon to supplement a loss or satisfy a financial claim.

All too often this area of advice is often ignored or overlooked by professional advisers.


So how do you create a more “protective” structure?

Each situation is different and bespoke advice is advised, but a holding company (or parent company) can be created for this purpose.


What does a holding company look like?

Other options?

Of course there are other options rather than a restructure, for example: Distributing in a tax efficient way, use of a pension vehicle, utilise the cash for trading purposes or advantage. We enjoy bouncing all of your ideas around!

What to do next?

If this is something that you wish to explore further for your business then please do not hesitate to contact us.

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