Thrive Corporate Management Service: A Business Solution
Helping to maximise the earning potential of excess cash and to mitigate tax liabilities, the CMS helps businesses to not only survive but to thrive
With our strong focus on customers and commitment to providing solutions that meet their requirements, we serve a wide range of customers, from advisers and investors to businesses. The Thrive Corporate Management Service (CMS) is designed for our business customers, enabling them to put excess cash to work.
We know that all of our customers rely on us to mitigate risk. The Thrive CMS is a solution providing assurances for our business customers through its focus, its design, and its execution. And, drawing on our tax-efficient expertise, the service also brings tax benefits.
We recognise that holding cash on account is standard practice for businesses, providing a way to navigate unexpected events, whether in a company’s own fortunes or arising from economic and political change. However, as all business owners know, if too much capital is held on deposit during periods of low interest rates this, coupled with high inflation, can become an expensive luxury.
The Thrive CMS provides a way forward, through using the cash for direct lending activity to other small and medium-sized UK companies. Loans take the form of asset-backed lending and property development lending. The service is able to target a competitive return of 4%–7% per year (net of all fees) with no upper limit.
Blackfinch is appointed under a management agreement, ensuring that activity sits within the management team’s risk profiles and return expectations. The team also retains control as the cash remains within the business. We also regularly review all agreements with clients, ensuring that as each business progresses and evolves, so does the service.
Our clients have further assurance through how each loan’s underlying assets provide strong security to underpin the company’s capital. Assets are transparently valued and their value is continually monitored. There is further flexibility in that clients can also exit loans or invest further amounts from just £10,000.
Beyond cash optimization and potential returns, the Thrive CMS helps to maintain attractive tax reliefs. While holding surplus cash can lead to HMRC restricting the amount of Business Relief (BR) available to shareholders on death, BR-qualifying assets can ensure Inheritance Tax exemption. And if management aims to exit the business, they can utilize Entrepreneurs’ Relief through the service, helping them to reduce their Capital Gains Tax bill.
The Thrive CMS is a service for businesses. But it reflects the extent of support we offer to all of our customers. We work to help everyone – from advisers to investors to businesses – adapt to changing circumstances and take an evolved approach to financial plans. Ultimately we are working to enable people, from businesses owners to individuals and their families, to thrive.
Whether you have an initial query, a question on an investment, or would like to arrange a call or meeting, please feel free to get in touch.
Contact us with a question or query: