- Article
- Commercial wealth
- Yield enhancement
Commercial Wealth Series: Making your surplus cash work smarter
Do any of these ring a bell for your business?
- You’ve seen a surge in revenue
- You've built up some capital in reserve
- You’re not sure about leaving your idle funds in a basic business bank account
- You want to put your surplus cash to work, but aren’t sure how to make the best use of it
If you answered yes to one or more of the above, it may be time to take action to ensure your available capital not only holds its value but also fits into a wealth plan that optimises how you manage surplus cash when you have it.
What does your business need?
An inflow of funds, growing retained profits and other factors can all lead to surplus cash reserves. As a business decision maker, you understand the importance of protecting your capital from erosion by inflation, market fluctuations or other risks regardless of your risk appetite.
Your business needs an effective commercial wealth strategy that allows you to:
- Protect capital from inflation
- Navigate market volatility without unnecessary exposure
- Seek steady growth aligned with your company’s risk appetite and long-term goals
- Optimise asset allocation to balance risk and opportunity
How can HSBC Commercial Wealth help?
We offer a sophisticated suite of investment strategies designed to help you make the most of your available capital. Rather than letting your liquidity remain in low-yield deposit accounts, our solutions aim to help you diversify risk and explore multiple avenues for returns.
We work with you to tailor made a resilient portfolio that reflects your business’s sector, unique wealth management needs, financial goals, risk tolerance and investment horizon, supporting both your business growth and long-term stability.
Illustrative caseA steadily growing manufacturing firm that has accumulated significant cash reserves from recent successful bids. While keeping these funds in traditional bank deposits felt safe, they were concerned about inflation steadily eroding their value and the relatively low returns offered by basic accounts. To address this, HSBC’s Commercial Wealth team introduced them to liquidity solutions that provide daily access to funds while offering better yield potential than standard deposits. These solutions invest in a diversified mix of short-term fixed income instruments, balancing the need for liquidity with opportunities for income generation. Through these solutions, the firm achieved enhanced returns on their surplus funds without sacrificing flexibility. Their capital remained accessible for operational needs, while working harder to protect against inflation and generating steady income—supporting the company’s overall growth goals and financial strength. |
Ready for the next step?
It’s time to unlock the full potential of your business’s surplus funds and embrace a more strategic approach to wealth creation. For 160 years, we have supported businesses at every stage of growth. We’re here to assist you towards smarter commercial wealth management, improve your profit and secure a stronger, more resilient future for your business.
We invite you to speak with our Commercial Wealth specialist by clicking on the ‘Contact us’ button below or visit one of our HSBC Commercial Wealth Centres located in Tsim Sha Tsui and Causeway Bay in Hong Kong. To find out more, please visit https://www.business.hsbc.com.hk/en-gb/products-and-solutions/commercial-wealth.
The Bank does not provide investment advice. Investment involves risk.
