Most often, it is used when a company is in a good financial position, such that it will have more cash than required for its operations or for any exigent circumstances. As much as it may be tempting to invest or keep this extra sum in a passbook account or even under-utilized, this is a loss of growth and security. With the emergence of new economic conditions, fluctuations and various unexpected obstacles that can occur in the management of a company, it means that to have a well-prepared plan on how to use surplus funds is not just a wise policy – it is a necessary policy. It is universally recognized that the efficient investing of excess cash can ultimately result in huge profits and therefore help the business to achieve liquidity in the short term together with profitability in the long term. 
 
 Efficient investment of these funds is important for a number of reasons. Not only financial position of the company can be improved by strategic investments, but also Joe’s company’s balance could be reinforced by investments in organizing economic security and in implementing new projects. When it comes to the management of excess funds by businesses, there are several possible approaches which include the following; This article outlines five smart approaches; each has its advantages, and each suits your risk tolerance and investment horizon, so that you can make wise choices that fit your business objectives. 
 

 
 A high-interest savings account however, are a low risk and easy to implement solution for the business that aims at making a meager return on the excess of cash for the firm’s operations. In contrast to standard business accounts, where the interest rate is very low, it is possible to organize high-interest accounts, where funds can be securely stored and provide quite lesionable returns which, if compounded over time, can significantly increase the company’s income. This strategy makes it possible for the business to access the money in case of an emergency and therefore it is ideal for clients who wish to combine security of their funds and ease of access. 
 
 High-interest savings account however, involves consideration of certain factors like the interest rate, minimum deposit and withdrawal excepts. Some accounts may pay higher rates but they may have several conditions that might limit your operational cash flow. So, a high importance should be paid to the reliability of the financial company, and extra services that can be provided – consulting, or products, that may be helpful in effective management of the selected investment plan. 
 

 
 Other market reform investments include short-term bonds and treasury bills as a part of efficient excess cash balances, and for companies that cannot afford to lose any money in investments. These securities refer to the financial instruments floated by the government, and due to the credit of the government that stands behind them, they pose very low risk and anyone buying these securities can expect to get quite a good return on his money. The relative stability of bonds and treasury bills has by far made it the best investment tool for the orthodox investor because they guarantee steady little returns, but which is enough to provide both income and capital base. 
 
 However, the advantages of these investments are not only the stability of the products and services that are being delivered to the consumers. They are also to a certain extent, quite easily marketable on the secondary markets in the event that the business needs funds before the bonds or bills will mature. When using this strategy the attitudes of interest rates have to be taken into consideration since they impact the price of the bonds on the secondary market. Also, concerning the specifics of this investment approach, it is necessary to consider the general and main types of bonds, including municipal or corporate ones, the level of risk which is relevant for them, and yields. 
 

 
 In many cases, the use of surplus cash in the business is the most straightforward means of increasing the size and increasing the business’s revenue. This strategy can be carried out in a number of different manners including; increasing the number and size of outlets, increasing technological capabilities, improving on advertising and promotions and practicing increased levels of staff training and development. They also help in growth and development for expansion and innovation; cost-cutting and enhancement of productivity, and positive morale boost among the employees are other major plus points that can be transformed into lengths of organisational competitive edge and augmented market share. 
 
 In order to make a sound decision on where to reinvest the company must first assess where the most impact can be made with the additional revenues. The elaborate approach to the reinvestment may include the creation of relatively new product portfolios, venturing into new markets or improving the organogram on the customer services options. Policies for reinvestment should be made with a consideration on the ROI, the risk and time horizon of the reinvestment consistent with the business strategy. When used effectively for reinvestment purposes, which often targets the sectors that can yield the greatest returns, then such free cash flow guarantees companies success in the long run. 
 

 Indeed, purchasing of investments diversifies the risk since the surplus corporate funds over various types of securities as equities, mutual funds, as well as exchange traded funds (ETFs). This not only has the possibilities of yielding better returns as compared to more conventional forms of investment but also as a way of diversification to manage risk, so that the investor is not locked into any one kind of asset. The interest arising from being able to hold a well diversified investment portfolio is in the sense that if one investment is lose, the other may be gain thereby reducing fluctuations in investments. 
 
 In forming a well balanced diversified portfolio there are some factors that need to be taken into consideration these include the tolerance to risk, the time horizon for investments and the organization’s financial objectives. However, relying on high returns from ‘stocks’ or ‘specialised funds’ is possible but can prove dangerous and businesses must avoid over-investment in these risky instruments. Working with an experienced financial advisor can help in creating or developing a sound investment strategy that is right of the business and manage the portfolio with changes in the business environment or needs. 
 

 
 It is common knowledge that putting money into fixed assets like say commercial property presents business with a real and quite profitable opportunity at times in which they have excess capital. Real estate investment can give investors steady income in the form of rental income besides the possibility of earning capital gains in future and therefore forms a good choice of investment avenue for income as well as growth. And whether it is office premises, retail outlets, industrial and commercial space, the diversification is such that businesses are able to select facilities that meet their investment aims and their risk profile. 
 
 However, real estate investment does not only entail buying properties and waited to be rented out but it involves market analysis and economical factors. Site selection should also not be overlooked and should involve identifying trends within the location, vacancy rates, and; future developmental plans of the location. Engaging appropriate professionals may become useful when it comes to issues connected with property management, relations with tenants or other legal questions. Indeed, applied properly in an investment plan, real estate can indeed be a fundamental investment class that is secure and appreciating. 

 Both P2P lending and crowdfunding investments are rich ways through which business can invest excess capital through direct funding of projects or direct loan financing to individuals and other organizations. Thus, they allow a company to act as a lender who gives the money and receives interest or buy shares of promising startups, creative industries and etc. , which have high rate of return. It’s important to note here that P2P lending and crowdfunding are also primarily conducted online and creates a pool of opportunities in a far more diversified way than conventional investments reaching different sectors and industries. This is not only likely to yield profits but also gives satisfaction of being able to invest on young and budding business people so as to foster the growth of enterprises. 
 
 But as they say, the bigger the gain, the bigger the risk, so investing in P2P lending and crowdfunding is not exempted from this rule. These assets contain a much lower level of protection than such classical varieties of securities, meaning that default risks and foreseeable losses might be higher among investors if borrowings could not be repaid or if start-ups existed, for instance. Perhaps, it makes sense to begin by noting that in order to Minimize the risk exposure, companies need to carry out a vast amount of research, always critically assess the potential platforms and, respectively, borrowers, and, possibly, as much as possible, actively distribute the funds between different projects. Also, companies need to be ready for lower liquidity since funds invested in those platforms could be locked up for rather a long time depending on the investment agreements. Applying the theory of strategic management, P2P and crowdfunding may offer exceptional offers investment opportunities for operating businesses as well as generate high returns to the investors while stimulating advancement and improved operations in different sectors.
 

 
 The management of surplus funds is not just about increasing gains; it is equally about developing the business for the future. Through safe and higher risk investments including high interest savings, short term bond, reinvestment into the business, portfolio diversification and real estate investments, business
 has an upward effect on the financial position and the development of a strong base for sustainable success. Every of them has its advantages and disadvantages and, therefore, proper planning and consultation with financial experts is required. 
 
 However, investment of the surplus amount should be done based on the business objectives and a Times interest earned policy statement on the other hand, the level of risk that the business is willing and able to take together with the prevailing condition in market. Using these strategies, firms are capable of preserving their cash flows and at the same time identifying emerging prospects for expansion. It is high time to define further more how the spare funds are going to be managed and used in a way that will contribute to the continuous growth and development of the company.