France’s SME cash trap: why idle corporate deposits cost more than you think

French small and medium-sized enterprises (SMEs) are sitting on record levels of cash. According to Banque de France data, corporate deposits exceed 600 billion euros, much of it earning almost nothing. In an environment of slowing growth and moderate inflation, keeping idle cash on low-yield or non-remunerated accounts is a silent drag on profitability.

For treasurers and business owners, this “cash trap” is not a sign of prudence anymore — it’s an opportunity cost.

Why so much idle cash?

• Uncertainty: political instability, inflation, and uneven demand push companies to keep liquidity on hand.
• Bank habits: many SMEs rely on traditional accounts where yields rarely follow central bank rates.
• Administrative friction: setting up an investment or securities account is perceived as complex or reserved for large corporates.

As a result, cash stays idle, even while central bank policy offers higher money-market yields.

The hidden cost of inaction

With the Livret A capped at 1.7 % and most current accounts yielding 0 %, the real value of idle deposits declines month after month.

• Inflation (~2.8 %) erodes purchasing power.
• Companies lose the equivalent of several days of payroll or supplier payments every year simply by doing nothing.
• The spread between ECB deposit rates (2 %) and corporate account returns creates a systematic value leak.

Idle cash is not just unproductive — it’s actively losing value.

Smarter treasury management for SMEs

Corporate treasury doesn’t have to be complicated. The key is to combine liquidity, accessibility, and real return.

Smart Overnight: flexible liquidity

• Tracks euro money-market rates linked to the ECB deposit rate.
• Offers daily interest accrual and no lock-up.
• Ideal for short-term cash that must remain available but earn something.

Amundi High Yield ESG: strategic allocation

• Diversified exposure to European corporate bonds.
• Benefits when interest rates decline.
• Adds medium-term yield potential with ESG integration.

Together, they form a two-pillar approach: liquidity today, performance tomorrow.

How Velesios bridges the gap

Through Velesios, SMEs and entrepreneurs can finally access professional-grade treasury tools in just a few clicks:

• Account opening (corporate or individual) directly on the Velesios platform.
• Execution and custody managed seamlessly via Interactive Brokers.
• Lower costs through order aggregation.
• A clear, intuitive dashboard for tracking treasury performance.

No paperwork, no hidden conditions — just efficient access to market-rate returns.

Conclusion

In today’s environment, holding idle cash is the new risk. For SMEs, switching from non-yielding accounts to flexible, market-linked solutions like Smart Overnight and Amundi High Yield ESG can turn dormant liquidity into a source of income — without sacrificing accessibility.

FAQ: SME cash and treasury optimization

Why don’t banks pay more on deposits?
Retail and SME accounts are not automatically linked to ECB rates — banks keep most of the margin.

Isn’t investing risky for a business?
Money-market ETFs like Smart Overnight carry minimal risk and daily liquidity. High Yield ESG adds yield with diversification.

How quickly can funds be accessed?
Smart Overnight offers daily redemption. Funds remain available when needed.

Is it complex to open an account?
No — everything happens through the Velesios platform; execution is handled by Interactive Brokers in the background.

Sources & references

• Banque de France – Statistiques des dépôts des sociétés non financières
• Service-Public – Livret A: taux fixé à 1,7 % depuis août 2025
• European Central Bank – Deposit facility rate: 2 % (June 2025)
• Amundi – EUR High Yield Corporate Bond ESG UCITS ETF Factsheet