Long-term corporate cash investments: where to invest in 2025?

Why invest your company's cash over the long term?

Investing a company's cash over the long term maximizes returns while securing financial surpluses.

Here are the main reasons why companies opt for long-term investments:

• Making the most of surpluses. Leaving money to "sleep" on a low-interest current account or passbook is tantamount to losing money to inflation. Placing this cash in higher-yielding products helps to combat this erosion.

• Benefit from superior performance . On average, long-term investments offer higher returns than short-term options (current accounts, savings books).

• Tax optimization. Certain long-term investments, such as capitalization contracts or SCPIs, offer tax advantages (tax allowances, depreciation, capital gains exemption under certain conditions).

• Prepare for future investments. Opting for long-term investments allows you to anticipate your company's future financing needs, such as business development, innovation or the acquisition of new premises.

Comparative table of long-term investments for companies

Here's a comparative table of the main long-term investment solutions for a company:

Long-term investments for corporate cash management

Long-term investments not only ensure superior returns, but also diversify risk. Here are some possible options:

The corporate capitalization contract

Le endowment contract is an investment aimed at companies, often assimilated to a life insurance . It enables companies to make their cash flow grow, while benefiting from flexible management and tax advantages.

• Benefits This contract allows you to partial surrenders without immediate taxation. This makes it particularly suited to companies that want to maintain liquidity while optimizing returns . The average yield is higher than that of term accounts or bank passbooks.

• Limits The main drawback is blocking funds for several years . You need to have a clear view of your short- and medium-term liquidity requirements before making any commitments.

SCPIs dedicated to businesses

Visit SCPI (Sociétés Civiles de Placement Immobilier) are commercial real estate investments that offer a stable return, generally within the following ranges between 4% and 6% gross.

• Benefits They enable une diversification via real estate without the need for direct property management. Returns are often more attractive than traditional bank investments . It's also a way to securing funds Real estate is traditionally seen as a stable investment.

• Disadvantages SCPIs have reduced liquidity, which means that the funds invested are not easily recoverable in times of need. What's more, there are entry fees (management fees, subscription fees) This can reduce net profitability.

The corporate securities account

Le corporate securities account allows you to invest in equities, bonds, ETFs or capitalization funds. This type of account is subject to the Corporate income tax (IS) and enables extensive diversification of investments.

• Benefits The securities account allows for active cash management, with high potential returns, especially in the following areas if the company chooses to diversify into dynamic sectors (technology, health, etc.).

• Disadvantages This type of investment involves a risk of capital loss. Stocks and other securities can fluctuate. In addition, active management often requires skills or the intervention of a professional to minimize risks.

Which is the best broker for a corporate securities account?

Choosing the right broker is essential for optimize costs and access the best investment products .

Here is a comparison of brokers for businesses:

• Interactive Brokers International platform offering low fees and a wide choice of assets, ideal for companies wishing to diversify their investments on a global scale.

• Boursorama Pro : Offers a simple, affordable solution for French companies, with easier access to European markets.

• Saxo Bank Good compromise between cost and diversity of available products, suitable for companies looking for a solid intermediary.

• Binck (by Saxo) An alternative with an intuitive interface, well suited to SMEs and investors new to the stock market.

The choice of broker will depend on company needs of the frequency of operations and associated costs . A detailed comparison can help determine the most cost-effective platform for your financial goals.

Corporate bonds and convertible bonds

Corporate bonds are debt instruments issued by companies to finance their projects . They generally offer a higher yield than government bonds and are less volatile than equities .

• Benefits They are more stable than equities, and offer regular returns thanks to interest payments. The average return is between 2% and 5%, depending on risk.

• Disadvantages The main drawback is the risk of issuer default, which may result in partial or total loss of capital.

Private equity and private equity via a holding company

Le private equity enables companies to invest in growing SMEs via specialized funds.

The a high-risk investment but with significant yield potential, including between 7% and 15% a year.

• Benefits This type of investment can generate very high yields especially if the company invests in startups or fast-growing businesses.

• Disadvantages Capital is often locked in for 7 to 10 years This means that the company will not have easy access to its funds before maturity.

Direct investment in commercial real estate

Buying business premises, warehouses or offices can be an excellent solution for companies wishing to invest in tangible assets.

• Benefits : Commercial real estate can offer attractive yields of between 5% and 7%, with the advantage of specific tax benefits (depreciation, tax deductions).

• Disadvantages The management of these properties is more complex and may require expertise. What's more, the capital invested is not easily recoverable.

3 criteria for choosing a long-term investment

A long-term investment must be based on several essential criteria:

The investment horizon

Setting a minimum investment term helps maximize returns. Long-term investments often require a period of several years to be profitable.

You must therefore determine whether the company can afford to tie up its cash during this period .

Expected profitability

The profitability of long-term investments can vary according to the type of product chosen . Investments such as SCPI or the capitalization contracts generally offer higher returns than traditional term accounts.

However, they may also entail a liquidity risk.

The level of risk

Assessing the level of risk the company is prepared to accept is essential. For example, investing in private equity or in actions presents a higher risk, but a higher potential return. On the other hand, investments such as SCPI or the obligations offer greater safety with a more moderate return.

How are long-term corporate investments taxed?

The tax treatment of long-term investments depends on the type of instrument chosen and the duration of the investment.

All gains generated by these investments are subject to tax. corporate income tax. However, some products, such as SCPI or the capitalization contracts They offer tax optimization possibilities, such as deduction of expenses or depreciation.

On the other hand, capital gains realized on the sale of certain assets (real estate, shares) are subject to tax. However, some exemptions are possible depending on the length of time the assets have been held.

In addition, certain investments, such as the commercial real estate or the SCPI are ideal for deduction of expenses and depreciation . These schemes reduce the tax base.

Discover the Hero pro account for optimized long-term cash management

Le Hero pro account stands out as a practical, cost-effective solution for long-term cash management.

With competitive rates (up to 3%) and a large flexibility It enables companies to secure their financial surpluses while enjoying higher returns than traditional accounts.

Here are the details of its features:

• Simplified cash management

• Deposits at any time

• Flexible withdrawals .

What's more, this account is ideal for for companies seeking to maximize returns while maintaining rapid access to funds.

Compared with other traditional banking solutions, the Hero pro account offers significant advantages, including

• Low management costs

• Attractive returns

• Penalty-free availability of funds.

Invest long-term cash flow maximizes returns while securing surplus funds. The solutions available, such as SCPI, private equity and capitalization contracts, are all opportunities for companies seeking to optimize their cash flow while anticipating future needs.

The Hero pro account is a competitive and flexible alternative for managing surplus cash over the long term.