The term speculative balance refers to funds you have set aside when you know or anticipate a bargain is coming soon for a particular product or service. For example, your firm may want to take advantage of an opportunity to purchase raw materials at a reduced price if paying cash.

As another example, your bank might offer you an incentive to maintain a minimum balance in your bank account(s), which may cause you to wait for account balances to rise above a certain point before purchasing a product or service or making an investment. Use speculative balance information here as a guide and don't be afraid to retain a consultant for speculative balance questions. A few things to be aware of include:

1. Obtain the speculative balance you need today by applying for a fast cash loan online.

2. Get speculative balance advice from a financial adviser.

3. Put your finances on auto-pilot with speculative balance consulting.

Action Steps
The best contacts and resources to help you get it done

Become a speculative balance expert; get financial training for you and your staff

Train yourself or your staff in cash management, which will prepare you to make tough business decisions, like whether to withhold a particular speculative balance. This can also save money in the long run in deference to buying consulting services.

I recommend: Cornell University offers a course in cash management called CSH 100. The Training Registry also offers numerous accounting and financial training programs. These courses will give you the in-depth knowledge and understanding of finance that will make you a speculative balance expert.

Ask a financial adviser if your proposed speculative balance is the best choice

Because there are thousands of places to invest your business' money, it's a good idea to get the advice of a professional financial adviser. When considering holding a substantial speculative balance, he/she may know of other alternatives that would bring you a higher return on investment (ROI) over the same period.

I recommend: The National Association of Insurance Advisors (NAIFA) enables you to search for a financial adviser in your area by zip code, city and state or by name. Robert W. Baird has extensive experience providing financial advice and consulting to institutions and corporations. They will provide the speculative balance expert you're looking for.

Let the experts manage your business cash and make speculative balance decisions

Unless you're trained and experienced in cash management, you might be well advised to secure the services of a professional cash management company. They know how to compare benefit-to-cost rations between competing options and to make the most cost-effective decisions like speculative balance withholdings.

I recommend: TD Banknorth and Bank of the West, offer speculative balance consulting as part of their cash management services. These can be tailored to the requirements of your firm. They provide business checking analysis and zero balance/target balance account services to ensure you have the control you need for any speculative balance requirements that arise.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  There is a cost involved with holding inventory and, for that reason, you may decide not to purchase extra inventory due to the expected time to move it. However, if you foresee an opportunity to purchase extra items at a discount that is greater than the carrying costs of holding what you have in stock, then the best decision is to reserve a speculative balance of cash for the purchase of the extra inventory.
• •  Consider the following to determine whether you need the professional input of a financial adviser when considering holding a speculative balance vs. engaging in competing investments. Are you fairly knowledgeable about investments? Do you enjoy researching information on investing? If you are knowledgeable about investments, do you have the time to monitor them closely?