Businesses and companies tend to hold different cash positions for various reasons. Some businesses prefer to hold cash, treasury bills, certificates of deposit, short-term bonds or other liquid assets to mitigate liquidity risks, and give them quick access to cash when necessary. Other businesses prefer to deposit their cash in banks that invariably offer seemingly low interest rates and returns, whilst others choose to invest them in low-risk financial instruments through traditional fund managers, with little or no autonomy or control over the nature of these investments in question or the risks associated with them.
What is clear is that there are downsides to holding these cash positions. On one hand, holding too much cash gives businesses easy liquidity at the expense of the opportunity to invest and earn returns, since holding cash generates relatively low value. On the other hand, other businesses that invest their funds with traditional fund managers do so at the expense of their autonomy, transparency regarding available market rates and the capacity to invest on their own terms.
Regardless, such businesses have something to lose.
So, is it strategic for businesses to hold too much cash? Should businesses reconsider their positions on investing their business cash? More importantly, should your business consider investing idle business funds in a transparent, central platform that leverages the power of technology and asset management to help you unlock an additional income stream? Is such a tool available?
Cowrywise is a digital-first wealth management platform founded on the belief that “investing should be as a simple as sending a tweet”, with the singular vision to simplify and enable access to savings and investment products to the growing population of underserved Africans and millenials. Since Cowrywise began operations in 2017, Cowrywise has helped hundreds of thousands of Nigerians to build wealth and healthy budgetary and saving habits and is at the frontier of digitizing wealth management for retail investors and businesses.
And now, Cowrywise has expanded its vision to tackle a common problem facing businesses today, by developing Sprout to help businesses invest easily and build wealth while preserving their capital.
What is Sprout by Cowrywise?
Sprout by Cowrywise is a technology-first approach to investing for businesses, that offers one central platform to identify, make and manage investments from top fund managers in the country. As a corporate treasury management tool, it is positioned as the best alternative to the antiquated, traditional treasury management process available today, which is manual, opaque, prone to arbitrage and exposes businesses to liquidity and operational risks.
With a key focus on security, liquidity and yield (SLY), Sprout by Cowrywise gives businesses access to invest in safe, liquid, better-yielding investment products (money market funds and indexes), purposely and carefully-curated to avoid putting your business cash at risk.
Businesses that use Sprout have access to one central dashboard (right on their desktops), giving them the autonomy they need to manage and monitor their investments. Through Sprout, businesses can identify aggregated investments from top asset managers in the country and have the freedom to ascertain the best interest rates that work for them.
What Sprout offers businesses that others don’t
Sprout gives businesses key benefits that are unparalleled in the industry: Capital preservation: Leverage low-risk investment products for your business, such as money market mutual funds from top asset managers.
Transparency: Sprout gives an eagle’s eye view into all your investment transactions with a single, easy-to-understand dashboard, and access to real-time reports and data. No hidden fees. No jargons.
Flexible investment terms: Choose an investment tenure that works for your business and investment goal.
Easy set-up: With the necessary documentation on hand, businesses can set-up an account on Sprout in 5 mins or less.
Liquidate anytime: Convert your investment to cash within 48 hours whenever there’s a need – no hassle of long queues, calls or paperwork.
Better yield: Supercharge your revenue and switch from leaving idle cash in the bank. Start generating safe, additional income while preserving your capital, in a robust investment portfolio of money market securities from top asset managers. Security: Sprout also offers round the clock, bank grade security and protection, on account of being PCI-DSS compliant and securing an SEC License.
Key Takeaways
- Businesses hold cash positions for different reasons, majorly to have quick access to cash as the need arises
- Other business tend to keep their funds in banks or invest in low-risk financial instruments through traditional fund managers
- Sprout by Cowrywise offers businesses access to carefully curated portfolio of funds that yield better returns, with the additional benefits of easy liquidation, round-the-clock security and one easy-to-use platform to make and manage investments
How can you set up your business to enjoy better yielding returns?
Since Sprout launched in the last week of May, several businesses have pivoted to adopt Sprout to achieve their investment objectives. Your business can take advantage of Sprout to unlock an additional income stream.
Activating your account requires a few corporate documents such as Incorporation/Registration documents, proof of address etc. It only requires a few clicks and a few minutes.
Visit https://cowrywise.com/sprout to get started.
