Managing your business operations is not always about making money and sales. A big part of the equation involves making wise decisions about expenses to prevent money drains in your business operations.
When you view individual unnecessary expenditures, it may not seem like a big deal—monthly subscriptions to a few apps, some small bank transfer fees, and a few thousand pesos’ worth of equipment you have yet to use. However, it's crucial for merchants to be mindful of these expenses. By scrutinizing each cost, businesses can identify opportunities to optimize spending and improve their financial health.
With the knowledge that money drains can greatly affect your cash flow management, it's crucial to conduct a thorough review of your finances. Identify and eliminate these small leaks to ensure a healthier financial outlook for your business. Taking proactive steps now can prevent the accumulation of unnecessary costs that might jeopardize your long-term financial stability.
In this article, we’ll uncover a few hidden money drains and provide practical strategies to plug these leaks, helping you optimize your financial performance and enhance the overall sustainability of your business.
1.Multiple Bank Fees
Business banking serves as a cornerstone for managing financial transactions, yet it's important to recognize its potential impact on your bottom line. With each transaction, there are associated costs such as monthly maintenance fees, ATM charges, and transfer fees, which can accumulate over time
Fortunately, there are digital solutions to your traditional banking problems. For one, you can open a digital bank account, such as a Maya Business Deposit account, that allows you to send money to your suppliers, partners, and other stakeholders through PESONet and InstaPay for free. This eliminates much of your bank transfer fees while also providing you with an astounding per annum interest rate of 2.5 percent, which is up to 20 to 25 times more than what the average commercial bank in the Philippines offers.
When it comes to small business banking, Philippines is still lagging behind some of its Asian neighbors with 76 percent of all loans going to large corporations. Millions of small and informal entrepreneurs could also benefit from having access to additional financing. The good this is that the tides are turning. Spurred on by digital banking solutions provided by financial technology or fintech companies, such as Maya, Filipino consumers and entrepreneurs are beginning to adopt fintech banking solutions for their daily financial transactions. In fact, FICO’s 2021 report found that more than half of Filipinos prefer to interact with financial institutions through digital channels rather than in person. This is an encouraging trend that would hopefully promote the use of small business banking online tools to reduce the cost of banking services.
2. Penalties for Payment Delays
Late payments might seem like minor hiccups, but their financial repercussions can be substantial. They can affect both your business banking and relationships with vendors. Indeed, accumulated late fees and penalties not only put a dent in your cash flow but also impact your financial standing.
To stop these expensive penalties, you can open a Maya Disbursement fund where you can schedule and issue payments to suppliers and vendors. Through Maya Business’s online SME business banking ecosystem, you can conveniently make payments, accomplish payrolls, and issue incentives. Utilizing the convenience of online business banking and disbursement tools, you can implement a robust and efficient payment system to avoid unnecessary financial setbacks.
3. Neglected Cash Flow Monitoring
Cash flow is the lifeblood of any business. That’s why leaving it unchecked and neglected can lead to serious financial ailments.
According to Score.org, 82 percent of businesses that fail are due to cash flow problems. That’s why it’s important to be on top of your business’s financial health through small business banking platforms like the Maya Business Manager, our proprietary online dashboard where you can monitor and take control of all your Maya Business solutions for banking, payments, and disbursements. By utilizing fintech tools like these, you can have real-time insights into the financial health of your business.
4. Irrelevant Software and Unnecessary Equipment Upgrades
In the digital age, software subscriptions have become commonplace, providing businesses with a plethora of tools and services. However, it's essential to ensure that every subscription aligns with your current business needs and goals. Rather than continuing to invest in tools that no longer provide value, take proactive steps to optimize your software arsenal. For example, do you really need another fintech app when you already have a reliable business banking online app like your Maya app? Are you still using that accounting app, grammar correction software, or project tracking tool that you thought you needed months ago but never really used? To avoid paying for unnecessary subscription fees, ensure that every digital tool serves a purpose in your current business ecosystem.
Aside from software, you should also consider selling or returning equipment upgrades that add nothing to your business. To start with, evaluate each piece of equipment and assess its worth to your company. For instance, do you really require an expensive satellite-based internet service? If a more affordable cable internet service is sufficient, perhaps you should cut your expensive subscription and put the hardware up for sale.
Position Your Business for Better Financial Health with Maya Business Banking Solutions
Unmasking hidden money drains is not a one-time task but an ongoing commitment to financial vigilance. As you navigate the intricate waters of business operations, regularly assess your financial needs and be prepared to make adjustments. Your ability to identify and address these stealthy leaks is pivotal to ensuring the long-term financial health and sustainability of your business.
Register with Maya Business to take advantage of business banking solutions that can help you streamline your financial transactions, optimize your cash flow, and prevent unnecessary money drains. Setting up a Maya Business account enables you to open a Maya Business Deposit account and designate it as your settlement account. Unlike typical bank accounts, this digital business account provides you with a remarkable 2.5% annual interest rate. To put this into perspective, you stand to earn PHP 25,000 in annual interest on a PHP 1 million deposit. As if that’s not enough, you can use this account to conveniently transfer funds to your partners and suppliers at no cost through InstaPay and PESONet.
Another benefit for entrepreneurs and SME business owners is the automatic qualification for a no-collateral Maya Flexi Loan offer, which can give you access to up to PHP 2 million worth of financing in just 3 months. You can use the loan amount to boost your online or offline business. And by using Maya for all your payment processing needs, you can enhance the load offer you can receive.
So, what are you waiting for? Complete your Maya Business application today and take advantage of Maya Business solutions!
