Running a business means constantly juggling expenses, revenues, and unexpected costs. Effective cash flow management is vital for the survival of your business, and therefore demands the correct tools. That’s where Money Market Funds (MMFs) come in. These funds offer a safe and practical way to handle business cash flow while earning a little extra on idle funds.
Think of an MMF as a safe parking spot for your business cash. They make investments in short-term, quality financial instruments such as corporate bonds, government securities, and treasury bills. The beauty is that they keep your money accessible while earning better returns than a regular savings account.
For businesses, MMFs can serve two main purposes:
- Liquidity – You can pull your money out quickly when you need it.
- Growth – Your idle cash earns interest, helping you make the most of every shilling.
A good cash flow keeps your business running efficiently by paying suppliers, covering payroll, and addressing unforeseen expenses.
Money Market Funds provide the best of both worlds: access to cash when you need it and a consistent return when you do not. Unlike fixed deposits that lock in your money, these funds allow you to withdraw money without penalties.
Your money wastes away when it sits in a regular savings account. MMFs typically provide better yields than regular savings accounts, allowing your company to make the most of its working capital.
Every business has to deal with slow seasons or unforeseen expenses. MMFs provide a financial cushion, ensuring you have cash at hand when you need it most.
Before diving in, take a look at your cash flow:
- How much cash do you need at hand for daily operations?
- How much can you safely set aside in a Money Market Fund without affecting liquidity?
Set up a system to invest:
- Manually invest surplus cash at the end of each month.
- Use an automated sweep account to move excess funds into an MMF daily.
- Review your investments regularly to adjust based on market trends.
MMFs provide a simple, low-risk way to keep cash liquid while earning returns, making them a smart choice for businesses of all sizes. Choosing the right MMF for your business (that is easily accessible, CMA regulated, earns stable returns, and tax-exempt) like the Jubilee Money Market Fund, will transform your business cash flow operations. Even when your business operates in multiple currencies, the Jubilee Money Market Fund (USD) ensures that your business’ capital stays productive.
To get started with investing in a Money Market Fund, start with the Jubilee Money Market Fund which is available in Kenya Shillings and US Dollars. SMS the MMF to 24245 or dial *706*3# to talk to a Financial Advisor.
