Cash Management Solutions for SMEs & Professional Services
Optimise cash reserve returns while maintaining liquidity
Make your business’s cash reserve work harder with our fuss-free cash management solutions.
Is Your Business Sitting on Idle Cash? Here is How to Make It Work for You
Many small and medium-sized enterprises (SMEs) and professional service firms in Singapore maintain large cash reserves for operational expenses, emergency funds, and future investments. However, these funds often sit in low-interest savings accounts, earning little to no return.
Rather than letting business reserves remain idle, SMEs can optimise cash management strategies to earn higher returns while ensuring liquidity for operational needs.
Unused Cash Reserves Are Losing Value
Many SMEs leave significant amounts of money in regular business savings accounts, assuming it is the safest option. While keeping cash accessible is important, traditional bank deposits often provide interest rates that are lower than inflation, which means businesses are effectively losing money over time.
Common Cash Management Challenges for SMEs
- Low-interest business savings accounts – Most SME accounts provide negligible returns, reducing purchasing power over time.
- Fixed deposits limit flexibility – Locking up cash in fixed deposits for slightly higher interest reduces liquidity when funds are needed.
- Lack of cash flow planning – Businesses may not have a structured approach to allocate working capital efficiently.
- Low-interest business savings accounts – Most SME accounts provide negligible returns, reducing purchasing power over time.
- Fixed deposits limit flexibility – Locking up cash in fixed deposits for slightly higher interest reduces liquidity when funds are needed.
- Lack of cash flow planning – Businesses may not have a structured approach to allocate working capital efficiently.
To maintain financial agility, businesses need a cash management strategy that balances growth, security, and accessibility.
How SMEs Can Maximise Idle Cash Reserves
Instead of leaving cash in low-interest accounts, businesses can explore structured cash management solutions to earn higher returns while keeping funds liquid for operations.
|
Factors |
Cash Management Solutions |
Traditional Bank Deposit |
|
Interest Rate |
Approx. 2-3.5% per year |
Approx. 0.5% per year |
|
Liquidity |
High |
High |
|
Risk Level |
Low |
Low |
|
Access to Funds |
Next-day |
Immediate |
By shifting from traditional savings accounts and restrictive fixed deposits, businesses can achieve higher returns without compromising access to capital.
How Cash Management Works for SMEs
To optimise business reserves while maintaining liquidity, SMEs can follow this structured cash management approach.
- Assess cash flow needs. Identify how much cash is required for short-term operations and how much can be allocated for higher-yield options.
- Deposit excess funds. Move idle business reserves into a structured cash management solution designed for capital preservation.
- Earn competitive interest. Gain returns higher than traditional savings accounts while keeping cash flexible.
- Maintain full liquidity. Withdraw funds as needed, with next-day access to ensure financial agility.
- Assess cash flow needs. Identify how much cash is required for short-term operations and how much can be allocated for higher-yield options.
- Deposit excess funds. Move idle business reserves into a structured cash management solution designed for capital preservation.
- Earn competitive interest. Gain returns higher than traditional savings accounts while keeping cash flexible.
- Maintain full liquidity. Withdraw funds as needed, with next-day access to ensure financial agility.
This approach enables SMEs to grow their reserves without taking unnecessary risks.
Who Can Benefit from Optimised Cash Management?
A well-managed cash reserve strategy is essential for various business types.
Small and medium-sized enterprises (SMEs)
Companies managing fluctuating cash flows can optimise their reserves to increase passive income.
Professional service firms
Law firms, consultancies, and accounting firms with client retainers and advance payments can grow reserves while maintaining liquidity.
Businesses with seasonal revenue
Companies in industries with variable income cycles, such as event management, travel agencies, and retail, can manage cash flow efficiently.
For businesses managing high cash reserves, optimised cash management provides a secure and flexible way to earn higher returns.
Steps to Get Started with Cash Optimisation
Schedule a free consultation
Discuss your business’s cash flow needs with a financial expert.
Receive a customised plan
Get a tailored strategy based on liquidity requirements and cash reserve size.
Start earning higher interest/yield
Implement the recommended cash management approach and put your idle cash to work.
This structured approach ensures that businesses maximise returns without affecting daily operations.
Take the First Step Towards Smarter Cash Management for Your Business
A business’s cash reserves should not be sitting idle in low-interest bank accounts. By adopting an optimised cash management strategy, SMEs and professional service firms can earn higher interest while maintaining full liquidity for operations.
To learn more about how your business can improve cash flow management, schedule a free consultation today.