Optimize Your Company's Cash Reserves

By Sam Kendree

January 24, 2019

Optimize Your Company's Cash Reserves

Business owners run into numerous challenges on a daily basis. Challenges that often dictate the success or demise of their company. At Chicago Partners, we try to help our clients control what is controllable and navigate through what is at random.

Corporate cash management is an item that falls into the controllable column. Businesses often have cash on hand but need the cash to be liquid at a moments notice. Most business owners hold this corporate cash in a savings account that yields anywhere from 0.33% to 1.5%.

For comparison, the rate of inflation is around 2.1% annually. At this rate, companies' excess cash is losing value over the long term. That is the bad news. The good news is that proper management of these funds can produce a rate of return greater than inflation without taking too much risk.

Business owners' first and foremost responsibility is keeping this extra cash liquid. The added interest is a bonus that is often an after-thought. However, at Chicago Partners, we help our clients maintain the much-needed liquidity of their cash at hand, while amplifying their working dollars. 

Chicago Partner’s corporate cash management solution is comprised of six funds and yields around 3.5%-4%. Each of these funds is a low-risk investment, and each is highly liquid. This allows business owners to generate returns on their cash while still keeping their company's money safe from market volatility. Part of this solution is a next day settlement, which means that the funds can become liquid in 24 hours. We pride ourselves in providing value to every single aspect of our client’s financial well-being, even if the benefit is minimal.

Many business owners often neglect the cash on hand, and are constantly looking forward to the next purchase. We see this as a missed opportunity for our clients to increase their cash flow with a well allocated money market solution. 

To start a conversation with an advisor about how to protect your company's cash in a more efficient way, reach out to an advisor at Chicago Partners. 

Sam Kendree is an Associate Advisor at Chicago Partners Wealth Advisors who specializes in helping individuals create solid financial plans.


1Zweig, Jason, Value Should Do Better. But When Is Anybody’s Guess, Wall Street Journal, April 27, 2018.

2JPM Guide the Markets, U.S., 2Q 2018, as of March 31, 2018, p 9.

Important Disclosure Information

Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Chicago Partners Investment Group LLC (“CP”), or any non-investment related content, made reference to directly or indirectly in this commentary will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or as a substitute for, personalized investment advice from CP. Please remember to contact CP, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. CP is neither a law firm nor a certified public accounting firm and no portion of the commentary content should be construed as legal or accounting advice. A copy of the CP’s current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request.

January 24, 2019

Optimize Your Company's Cash Reserves

Business owners run into numerous challenges on a daily basis. Challenges that often dictate the success or demise of their company. At Chicago Partners, we try to help our clients control what is controllable and navigate through what is at random.

Corporate cash management is an item that falls into the controllable column. Businesses often have cash on hand but need the cash to be liquid at a moments notice. Most business owners hold this corporate cash in a savings account that yields anywhere from 0.33% to 1.5%.

For comparison, the rate of inflation is around 2.1% annually. At this rate, companies' excess cash is losing value over the long term. That is the bad news. The good news is that proper management of these funds can produce a rate of return greater than inflation without taking too much risk.

Business owners' first and foremost responsibility is keeping this extra cash liquid. The added interest is a bonus that is often an after-thought. However, at Chicago Partners, we help our clients maintain the much-needed liquidity of their cash at hand, while amplifying their working dollars.

Chicago Partner’s corporate cash management solution is comprised of six funds and yields around 3.5%-4%. Each of these funds is a low-risk investment, and each is highly liquid. This allows business owners to generate returns on their cash while still keeping their company's money safe from market volatility. Part of this solution is a next day settlement, which means that the funds can become liquid in 24 hours. We pride ourselves in providing value to every single aspect of our client’s financial well-being, even if the benefit is minimal.

Many business owners often neglect the cash on hand, and are constantly looking forward to the next purchase. We see this as a missed opportunity for our clients to increase their cash flow with a well allocated money market solution.

To start a conversation with an advisor about how to protect your company's cash in a more efficient way, reach out to an advisor at Chicago Partners.

Sam Kendree is an Associate Advisor at Chicago Partners Wealth Advisors who specializes in helping individuals create solid financial plans.


Important Disclosure Information

Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Chicago Partners Investment Group LLC (“CP”), or any non-investment related content, made reference to directly or indirectly in this commentary will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or as a substitute for, personalized investment advice from CP. Please remember to contact CP, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. CP is neither a law firm nor a certified public accounting firm and no portion of the commentary content should be construed as legal or accounting advice. A copy of the CP’s current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request.