Investown opened up investing for companies — Investown Business
About 92% of companies do not value their free capital in any way. Thus, corporate money often lies in bank accounts, where inflation constantly feeds into it. We want to change that, which is why we recently opened the possibility of investing for legal entities as well.
What can a firm do to value its capital outside the business area while keeping corporate investments in check? If it plans further development, such as expanding its production portfolio, production capacity and facilities, its priority will be cash flow.
Cash flow management is part of the financial management of successful companies. This also applies to the investment activity of the firm. The investment decision answers the question of whether it is profitable to implement the investment in question or not. Within the framework of looking at financial flows, it is then necessary to determine how the company wants to finance the investment project in order to be financially stable and optimal in terms of time and requirements for funding sources.
The key input is the current state of available funds usable for a given investment, the length of the investment horizon and the expected cash flows in this period.
Why are companies not valuing their capital?
The reason why many companies do not value their free money is probably not very attractive offer of domestic banks. Compared to individuals, corporate investors are disadvantaged in many ways. In what specifically?
To start investing through a bank is usually arduous process, coupled with lengthy paperwork. Most banks do not have standardized offers in the field of corporate investing, and it takes several days to get an individualized plan from them.
Interest rates offered by banks on low-risk investments fluctuate in the range of 3-7%. In particular, these are term deposits and savings accounts, which, incidentally, are not protected by the Deposit Insurance Fund, as is the case with individuals. This appreciation at current inflation is nothing for an investor to jump for joy over.
For some companies, too much can be a hindrance. high minimum investment or uncertainty about the future needs of financial resources that are thus fixed with banks.
Despite these facts, it is still true that leaving corporate money in current accounts is prohibitively expensive at current inflation. However, the offer of banks is not attractive enough for many companies.
Fortunately, there is a smart solution to value corporate capital profitably, simply and safely.
“Nowadays, it is quite appropriate to consider how to effectively work with free corporate funds that have not found application within the current needs of the company. Leaving these funds in a corporate account at a time of high inflation is a fairly wasteful way of thinking.
Although in today's environment of high interest rates, corporate clients can also receive interesting interest on deposit and term accounts, unfortunately it is far from approaching inflation, which is also predicted to be around 10% for 2023. In this case, it certainly makes sense to consider products that offer a high level of collateral due to real estate collateral and other covenants, but at the same time carry a higher interest rate compared to traditional instruments.
We are pleased that, parametrically, Investown comes with exactly this type of product and thus expands the range of possibilities where companies can invest their free funds. “
Jan Bartušek, CEO of Chytrý Honza
Investown — higher returns, less risk and red tape
Investown offers to corporate investors Equally favorable conditions como personas privados. The first companies have already started investing on Investown. What exactly intrigued them?
Simplicity and speed
With Investown, companies can start investing literally in a few clicks. Account creation takes place online, without waiting and complicated approval. Investing through the platform itself is easy, fast and intuitive.
Attractive and predictable returns
Corporate investors can gain with Investown annual yield up to 10%. This is significantly more than for certificates of deposit — at the level of bonds, but with significantly higher risk. Interest is fixed, not subject to the market situation. In addition, it is possible to take advantage of “time windows”, in which the interest offered is even higher.
Low risk
Loans secured by real estate are among the safest investment opportunities. In addition, companies can also invest smaller amounts, and by investing in several projects, they can diversify their portfolio.
Possible divestment of the investment
In the event that companies need to recover funds from an investment for operational needs, they have the opportunity to offer their investment or part of it for sale on the secondary market at any time.
The benefits of Investown in a nutshell
Higher appreciation compared to the offer of banks
Fixed interest up to 10% p.a. — the same throughout the project
Risk diversification (can be invested in multiple projects)
Simplicity, speed and investing from anywhere
Possibility of divestment of investment in the secondary market
“Without the appreciation of capital outside its own line of business, the company is currently depriving itself of potential profits. At a time of money-eating inflation, it is not smart to let money lie in a company account and not take advantage of the options that are in the market, such as investing. “
Vyacheslav Bondarchuk, Sales Director, BOKI Industries
Want to know more?
Read about how it works Investown Business, on our website. You will find out what projects we currently offer and how your investments will be secured.