Many business owners do not realise it, but surplus cash can be put to work.
It is better to invest your cash over the short, medium or long term.
Constellation Patrimoine has access to the full range of vehicles needed to invest company cash properly.
We offer capitalisation contracts and securities accounts allowing investment across different profiles:
Short term, in money-market funds and government bonds, very low risk with a reasonable return, close to 4% a year depending on central-bank rates.
Medium term, over two to five years, in corporate bonds, structured products and SCPI property funds, with stronger returns in the region of 5% to 10% a year.
Long term, beyond ten years, mainly in structured products, equities, private equity and commercial property.
A corporate capitalisation contract offers several advantages:
Cash sitting in a current account does not stand still: it loses purchasing power mechanically every year, at the rate of inflation. On €500,000 left idle, several years of inflation represent a considerable loss of real value, without any accounting line ever showing it. It is an invisible erosion, and it is the first reason to act.
The second reason is strategic. Cash that is structured and earning a return strengthens the balance sheet, improves the value of the company on a sale, and can fund growth without recourse to borrowing.
Before choosing any product, the cash must be segmented. Constellation Patrimoine always divides it into three distinct pockets, each with its own horizon and therefore its own solutions.
| Purpose | Horizon | Key requirement | |
|---|---|---|---|
| Working cash | Funding day-to-day operations | Immediate | Complete availability |
| Safety buffer | Absorbing a shock or a late payment | 3 to 12 months | Security and quick access |
| Durable surplus | Growing what the business does not need | 2 years and beyond | Return and diversification |
Only the third pocket is genuinely suited to medium or long-term investment. This segmentation avoids the most common mistake: tying up money the business actually needs.
Funds are locked for an agreed period in exchange for a return known in advance. It is the simplest and most transparent solution for the safety buffer. Early exit remains possible, generally at the cost of reduced interest.
Money-market funds offer near-immediate liquidity; bond funds offer a higher return in exchange for sensitivity to interest rates. Together they form the core of cash invested over the short and medium term.
This is the reference wrapper for a durable surplus. It gives access to diversified management, euro funds, equities, bonds, property, within a single framework, with tax rules specific to companies and considerable flexibility to switch between assets. It suits asset-holding companies particularly well.
Holding SCPI units inside the company generates regular income and diversifies the balance sheet, with a modest entry ticket and no management burden. The trade-off is lower liquidity: this suits a genuinely durable surplus.
These define a return scenario in advance, together with a mechanism offering partial protection of capital. Their value depends entirely on the quality of the structuring and the underlying asset chosen: they should only be used with advice, and for a limited share of the surplus.
| Solution | Liquidity | Horizon | Risk level |
|---|---|---|---|
| Term deposit | Limited during the term | 3 months to 5 years | Very low |
| Money-market fund | Near immediate | Under 12 months | Very low |
| Bond fund | Good | 2 to 5 years | Moderate |
| Capitalisation contract | Good | 2 years and beyond | Depends on the allocation |
| SCPI held by the company | Low | 8 years and beyond | Moderate |
We carry out an audit of your cash position: analysing flows, identifying the genuine operating requirement and establishing the surplus that is truly available. We then present a costed allocation pocket by pocket, factoring in the corporation-tax impact and your availability constraints, in a written report. We handle implementation and quarterly monitoring, with the ability to reallocate quickly if market conditions change.
The firm deals directly with the major asset-management houses, Pictet, Goldman Sachs, Fidelity, Franklin Templeton, Arkéa, with no additional intermediary and therefore no extra layer of fees.
Written by Mevlana Yildirim, founder of Constellation Patrimoine, a French Financial Investment Adviser (Conseiller en Investissements Financiers), registered with ORIAS under no. 26006339. Offices at 11 Avenue de Friedland, 75008 Paris, and through Mevlana Investments LLC in Dubai, first discovery meeting free of charge. General information for guidance only; this does not constitute personalised advice.
There is no regulatory threshold, but the exercise becomes genuinely worthwhile as soon as a durable surplus emerges, generally from a few tens of thousands of euros left untouched for more than a year. The decisive criterion is not the amount but how long the money has been sitting still: funds unused for twelve months belong in the surplus pocket.
Investment income received by a company subject to corporation tax is added to its taxable profit. Certain wrappers, such as the corporate capitalisation contract, follow specific rules that can smooth the tax charge over time. We quantify the tax impact before any decision is taken.
It depends on the vehicle. Money-market funds offer near-immediate liquidity; a term deposit allows early exit at the cost of reduced interest; SCPI holdings are markedly less liquid. That is precisely why we divide cash into three pockets before choosing any product.
Over a short horizon the absolute priority is security and availability, not yield. Money-market funds and short-dated term deposits are the appropriate solutions. Placing short-term cash in volatile assets risks having to sell at the worst moment, exactly when the money is needed.
Structured, income-producing cash strengthens the balance sheet and can count in your favour on a sale. Conversely, a large unused cash pile often raises questions from a buyer. This subject should be prepared several years before any transaction, alongside the succession strategy.
An exploratory meeting to assess your financial situation and see how we can help, at no cost and with no obligation.
01Together we set out the terms of our partnership and put forward tailored solutions suited to your circumstances.
02Access carefully selected investment opportunities and grow your wealth towards your objectives, with support at every step.
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