Liquid investment for businesses: understanding the options and comparing them

A liquid investment is a financial vehicle in which a company can place part of its cash while retaining the ability to recover the funds easily, quickly and at a controlled cost. In other words: you put your money to work, but you keep control over it.

In 2025, the topic became strategic for businesses for three main reasons:

• rising interest rates have made deposits and short-term investments more attractive;
• businesses more often have surplus cash, even temporarily;
• the question is no longer just where to invest, but how to place funds without locking them up or adding complexity.

And the business context completely changes the investment logic: for a company, the order of priorities is not return → risk → liquidity.

It is the opposite:

Liquidity → safety → simplicity → return

A business is not looking to “beat the market,” but to:

• keep its cash available to finance operations,
• avoid unnecessary fees,
• place part of its surplus cash if it makes sense,
• avoid complex or time-consuming products.

What is a liquid investment for a business?

A liquid investment is an investment whose funds can be recovered quickly and with few constraints. In other words: the company can withdraw its money when needed without long delays or potential losses linked to illiquidity.

It is not necessarily an investment that generates high returns, nor a specific financial product: it is a level of availability.

The key distinction: cash vs. investment

A business does not invest its funds like an individual. Above all, it manages an operating resource.

• Cash: funds immediately available to run the business (expenses, suppliers, salaries, taxes, contingencies).
• Investment: the use of surplus cash that will not be needed in the coming days or weeks.

In business, the general rule is: “Only invest what is not needed for short-term operations.”

The common confusion: liquidity ≠ performance

A liquid investment is not necessarily guaranteed, profitable or risk-free.

It simply means it can be recovered more easily than an illiquid asset (real estate, private equity, SCPI, long-term financing…).

Level	Time horizon	Objective
Short-term liquidity	A few days/weeks	Secure operations
Surplus liquidity	Several months	Put available cash to work

Why is liquidity a central criterion for businesses?

Liquidity is not just a question of return: it is an operational issue. A liquid investment allows a company to recover its funds quickly and without complex procedures. This immediate availability is essential, because cash is not meant to be locked up, but to support business activity.

1. Guarantee the immediate availability of funds

A business may need to mobilize its cash at any time to:

• finance an order or an urgent investment,
• pay suppliers and salaries,
• absorb a temporary drop in revenue,
• react to a market opportunity.

A liquid investment protects the business against cash-flow uncertainty.

2. Reduce the risk of cash-flow strain

Cash locked up in overly rigid products can create problems:

• difficulty recovering funds,
• excessively long delay,
• withdrawal fees or penalties.

For a business, the main risk is not lack of return: it is liquidity risk.

3. Flexibility to finance operations

Liquidity helps maintain permanent room for maneuver:

• invest without delay when an opportunity appears,
• anticipate customer/supplier cycles,
• manage cash needs according to business activity.

The more liquid an instrument is, the more operational flexibility the company retains.

4. Simple management and reduced administrative workload

Unlike long-term or complex investments, liquid solutions meet a key criterion for finance teams:

• no heavy technical monitoring,
• no daily management,
• no difficult-to-control risks or parameters.

The goal is not to optimize an investment portfolio, but to manage cash without adding complexity.

The main traditional liquid investments

When we talk about “liquid investments” for a business, we mean vehicles that allow easy access to funds, without excessive lock-up and with limited capital-loss risk. Here are the solutions most commonly used by businesses today.

1. The business surplus account (or interest-bearing account)

It is the business equivalent of a savings account.

How it works:

Part of the company’s cash is deposited in a separate bank account, often interest-bearing.

Advantages:

• immediate availability of funds
• no withdrawal procedure
• very simple management
• very low level of risk

Limitations:

• limited return
• depends on the bank and its terms

For whom / when:

Ideal for precautionary savings or a cash buffer.

2. Money market funds

These are ultra-cautious investment funds invested in short-term assets (government bonds, T-Bills, cash).

How it works:

The business buys fund units whose objective is to preserve capital and generate a low but positive return.

Advantages:

• simple access
• high liquidity (often T+1)
• moderate risk

Limitations:

• requires a securities account or insurance wrapper (capitalization contract)
• possible fees depending on the vehicle

For whom / when:

Prudent management of surplus cash over a few weeks to a few months.

3. Term deposits (TD)

An interest-bearing bank product with a defined maturity.

How it works:

You lock up funds for a set period (3 months, 12 months, 24 months…). At maturity, the bank repays the capital + interest.

Advantages:

• simple to set up
• higher return than standard accounts
• the possibility of breaking the term deposit early (with rate penalties)

Limitations:

• partial liquidity: you can exit, but more slowly
• limited return relative to the lock-up

For whom / when:

Predictable cash, short/medium term.

4. Capital-protected structured products

Financial products made up of bonds + options, with capital guaranteed at maturity.

Advantages:

• capital guaranteed at maturity (if the issuer does not default)
• more attractive potential return than simple products
• known time horizon in advance

Limitations:

• liquidity may be possible but is not guaranteed: early exit = market exposure
• more technical vehicle to understand
• requires a financial intermediary

For whom / when:

For businesses that want to improve their return without seeking excessive exposure.

Quick comparison of liquid investments

Investment	Liquidity	Risk level	Complexity	Typical use
Business surplus account	⭐⭐⭐⭐⭐	⭐	Very low	Precautionary cash
Money market funds	⭐⭐⭐⭐	⭐⭐	Low	Regular cash management
Term deposit	⭐⭐⭐	⭐⭐	Low	Scheduled surplus cash
Capital-protected structured products	⭐⭐	⭐⭐–⭐⭐⭐	Medium	Yield optimization over a defined horizon

Riskier alternatives

Some investment solutions exist outside traditional cash products. They are sometimes highlighted for their return potential, but it is important to remember their role: they are not primarily designed for short-term liquidity management in a business context.

Here are the main alternatives:

Stocks and ETFs (equities)

Financial markets are liquid (especially large caps or index ETFs). They allow buying and selling quickly.

However, they involve major constraints:

• potentially high volatility,
• risk of capital loss,
• need to monitor markets.

Common use: long-term strategy or wealth diversification. Not a preferred solution for managing operating cash needs.

Real estate and paper real estate (SCPI, OPCI, SCI)

These solutions are often seen as solid or “reassuring.”

But from a liquidity standpoint, they are generally less suitable:

• entry/management fees,
• sometimes long exit times,
• market risk (price fluctuations).

Real estate is therefore not a liquid investment in the strict sense: it can tie up capital and involves a long-term strategy.

Crowdfunding (renewable energy, real estate, companies…)

Crowdfunding can offer returns and a degree of diversification. But it involves:

• funds being tied up until maturity,
• very low liquidity (no secondary market),
• counterparty risk (depends on the project).

This is not a short-term cash management tool. It is an investment.

Cryptocurrencies

Digital assets are liquid from a technical standpoint (24/7 trading, fast withdrawals).

However, not all cryptocurrencies serve the same purpose. The best-known assets (such as volatile cryptocurrencies) have characteristics that are poorly suited to short-term treasury management:

• high volatility,
• sensitivity to markets and sentiment,
• large short-term price swings.

The alternatives above may have financial or strategic appeal. But they are generally not designed as investments dedicated to short-term cash management, because they combine at least one of these factors:

• partial illiquidity,
• market risk,
• long holding period,
• management complexity.

How should a business choose a liquid investment?

Choosing where to place treasury is not just a question of return. For a business, the logic is operational above all: preserving its ability to finance operations, salaries, suppliers or ongoing projects.

Before even considering a solution, several objective criteria need to be analyzed.

1. Investment horizon

The first question: when will you need this money?

• Immediate need → ultra-liquid investment
• 3 to 12 months of visibility → short-term investments
• Structural cash → more flexibility

An investment only makes sense if its horizon matches the company’s future needs.

2. Exit constraints

Liquidity does not mean the same thing everywhere.

Things to examine:

• withdrawal timeframe
• potential penalties
• redemption conditions
• dependence on the market (equities, real estate…)

A good liquid investment should allow funds to be recovered clearly and predictably.

3. Counterparty risk

This is the risk that the institution behind the investment will not be able to repay.

What to assess:

• financial strength
• supervision or regulation
• reserve transparency

In the professional world, this is a major criterion, often more important than return.

4. Issuer safety

Treasury management is not meant to be speculative.

A business looks for instruments that are:

• simple
• regulated
• reliable
• administratively clear

The more opaque an investment is, the higher the risk.

5. Taxation and costs

Two elements that directly affect real performance:

• corporate tax in most cases
• account maintenance, custody, arbitrage and product fees

Hidden costs are often what erase the performance of an overly complex product.

6. Management, maintenance and administrative workload

A good liquid investment is:

• easy to manage
• not very time-consuming
• does not require daily monitoring
• compatible with business accounting

Key idea: the best solution is never “the one that pays the most,” but the one that matches operational needs.

Digital treasury management solutions & regulatory framework

Treasury management has changed a lot in recent years. In addition to traditional investments, there are now technology solutions that make it possible to manage and optimize liquidity without relying solely on traditional banking products.

These solutions are not investment products: they make cash management easier and provide access to certain vehicles while preserving control over liquidity.

What digital solutions bring

They mainly address operational needs that businesses often face:

• cash-flow automation
• access to several vehicles at the same time (multi-asset, multi-bank)
• centralization and reporting
• reduction of administrative tasks
• simplified management of surplus cash

Today, technology solutions exist that allow liquid treasury to be managed more flexibly than through a traditional bank investment.

These solutions do not eliminate risk: they improve access, ergonomics and treasury steering.

A topic governed by regulation

Corporate treasury and liquidity-related solutions are fully within the scope of regulation. That is what ensures transparency and protection.

Main frameworks, simply put:

• MiCA in Europe: requirements on digital assets, custody, risk transparency, service provider status.
• National regulators (AMF, ACPR): supervision of intermediaries and certain financial services.
• ECB / Central Bank: rules on bank liquidity and deposits.
• US legislation (Genius Act): compliance requirements and enhanced audits for certain assets and infrastructures.

These frameworks aim to protect businesses on key points:

• quality of counterparties
• risk transparency
• asset security
• governance and supervision

Regulatory criteria are not there to limit liquidity, but to secure the environment in which it circulates.

Why does this matter for a business?

Because the security of liquid treasury depends on several elements:

• the service provider used,
• custody of the funds,
• the nature of the vehicle,
• institutional safeguards,
• the regulatory environment.

Good liquid treasury management today combines banking solutions, digital tools and strict regulatory standards.

Where does Regular fit in this ecosystem of liquid solutions?

Businesses no longer rely only on traditional banking products to manage available cash. A new category of solutions has emerged: digital liquidity investment platforms, of which Regular is one.

These solutions are not presented as traditional financial investments, but as tools that allow euro treasury to be invested and provide access to digital assets, with intuitive operation and simplified processes.

What Regular enables from an operational standpoint

Regular provides businesses with a simple way to benefit from the advantages of stablecoins and decentralized finance, enabling companies to:

• invest simply by euro bank transfer;
• make withdrawals at any time (<72h) and without fees;
• view invested balances through a digital interface;
• access a product framed by French regulation (PSAN status).

This is a different approach from a banking product: the logic is that of a liquid investment, designed to facilitate usability, operational flexibility and the availability of funds.

An operating model based on existing regulation

Regular is not an “outside-the-system” solution. The service operates within a clearly defined French regulatory framework:

• PSAN status registered with the AMF;
• compliance requirements;
• verification and governance procedures.

Frequently asked questions about liquid investments for businesses

What is a liquid investment for a business?

A liquid investment refers to a solution where the company can recover its funds quickly, without long notice periods and without capital being locked up. This type of solution meets a key need for finance teams: being able to mobilize treasury when the business requires it (payroll, investments, contingencies, orders).

In business, liquidity is often more important than performance: what matters is the availability of cash.

Can you lose capital?

It all depends on the vehicle used. Liquid investments are not synonymous with absolute capital protection. Risk can come from:

• the issuer (bank counterparty or platform),
• a temporary lock-up,
• regulatory constraints.

That is why an analysis of how the solution works, its reserves, regulatory status and governance remains essential.

A good rule of thumb: never focus only on profitability, but on liquidity level + safety level.

Who can invest treasury?

Depending on the structure:

• CEO,
• CFO,
• Treasurer,
• accounting firm,
• family office,
• external advisor,
• or anyone mandated to manage finances.

The only constraint: having the mandate or signing authority. There is no sector limit: SMEs, scale-ups, associations, holding companies or startups can manage their liquidity.

Which investment remains immediately available?

The solutions generally considered the most liquid are:

• bank accounts dedicated to treasury,
• certain digital solutions with unrestricted withdrawals,
• money market funds or interest-bearing accounts.

By contrast, real estate investments, structured products or certain funds may require exit delays.

Best practice: check the withdrawal timeframe, transfer timeframe and exit conditions.

Which investment is the easiest to manage?

Traditionally: current accounts and interest-bearing accounts.

Increasingly: digital treasury management solutions, because they avoid multiplying accounts, reduce administrative workload and simplify operations.

What a business generally looks for:

• ease of onboarding,
• minimal documentation,
• automated management,
• real-time visibility over movements.