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7 Business CD Insights for Purposeful Investing

Running a small business can sometimes feel like riding a rollercoaster. With all its twists and turns, navigating the wild ride of an ever-changing financial landscape requires owners to make savvy decisions to achieve long-term success. One often-overlooked avenue for growth is investing in a Business Certificate of Deposit (CD). 

While commonly utilized as a personal savings tool, CDs can be powerful assets for small business owners too. Keep reading to learn more about the benefits a Business CD can offer your business and empower your community.

1. Stability and Security

In the crazy world of business, establishing a stable stream of income can feel like a luxury. Business CDs provide an excess of stability as a low-risk investment with a fixed interest rate and a reliable return. Offering small business owners a welcomed sense of security and a certified financial foundation to support their plans for the future.

2. Predictable Returns

Business CDs are reliable and convenient, with a fixed term and interest rate, so you can predict exactly how much you’ll make. This comes in handy for small business owners who want to accurately forecast their earnings and evaluate their budgets with greater certainty. 

3. Diversification of Assets

We all know the expression “Don’t put all your eggs in one basket,” and the same goes for your portfolio. Diversifying investments is a fundamental strategy for risk management and Business CDs offer small business owners a way to protect their income with a low-risk, interest-earning asset. This financial strategy creates more resilience for small business owners and helps them weather future economic uncertainties.

4. Access Cash When You Need It

While Business CDs are designed to be held until maturity for maximum returns, they still offer a level of liquidity. In case of an emergency or unexpected expenses, small business owners can access their funds by paying a penalty for early withdrawal. This flexibility ensures that your business can respond to changing circumstances without breaking the bank.

5. Boosting Your Business Credit Score

Establishing and maintaining a positive credit history is vital for small businesses. By responsibly managing a Business CD, owners can enhance their business credit profile. This can lead to improved terms on future loans, better financing options, and increased credibility with lenders.

6. Tax Advantages To Consider

The interest earned on a Business CD is generally subject to taxation, but small business owners may benefit from potential tax advantages. Talk with a tax expert to see how a Business CD fits into the long-term tax strategy for your business.

7. Community Reinvestment

You can help keep up to 4x more money circulating in the local economy by investing with a Credit Union instead of a big bank. When you invest in a Business CD, your funds contribute to the credit union’s ability to provide affordable loans to other local businesses, support community development initiatives, and bolster the overall economic well-being of the region.

In short, investing in a Business CD with your local credit union is not just a sound financial decision for your business, it’s also a commitment to the growth and prosperity of the entire local economy. The stability, support, and community reinvestment make Business CDs from Vantage West a powerful tool for small business owners looking to make a positive impact beyond their own bottom line. Choose local, invest in your community, and watch as your business becomes a driving force for local economic empowerment.

Call to make an appointment with your Relationship Banker and learn more about Business CDs.

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