6 Sensible Reasons You Should Boost Your Small Business Savings

April 23, 2024
Reading Time
3 minute read

There are several schools of thought when it comes to business savings. Some argue that putting too much cash in savings can curtail a business’s growth potential. Others, take the opposite perspective, viewing large business savings as essential for achieving financial stability and exercising entrepreneurial freedom. 

Regardless of what you believe, it’s hard to argue against having a business banking account. Whether you’re a new business owner or a longtime veteran of the entrepreneurial scene, you understand that your business’s finances can only reach their full potential when they’re in a savings account that’s specifically designed for small to medium-sized enterprises (SMEs). That being said, in case you’re the type who believes in reinvesting every single peso they earn into the business, there are some solid arguments for having a healthier-sized savings fund for your business:

1. Prevents Cash Flow Mishaps

The availability of business-focused products like Maya Business Deposit has made it easier to track finances and do critical business banking online through associated business finance solutions or financial management platforms. In the case of Maya Business, it’s the Maya Business Manager, an all-in-one dashboard that gives business owners total control over their payment, banking, loan, and cash flow solutions.

Nevertheless, it’s still possible to make suboptimal business decisions that mess up your cash flow and your day-to-day operations. Having ample savings should help you easily overcome these minor hurdles and keep your operations going.

2. Provides You with Instant Emergency Funds

Though there are many good arguments to be made about reinvesting everything you earn, the lack of a sufficient savings fund can expose your business to serious financial risks during emergencies. If your business is doing well, borrowing funds during these times probably wouldn’t be an issue. However, if your business isn’t doing all that well, your enterprise may be forced to tap into unsafe funding sources. That said, if you actually have a large savings fund, you can completely avoid the costs and complications of borrowing from unreliable sources.

3. Avoids Debt-Driven Expansion Issues

Using external financing to enable business expansion is the norm among many SMEs. However, external funding often comes with caveats that may not align with your mission and vision. Self-funded expansion through your own business savings affords you much more freedom to follow your goals without compromise.

4. Improves Your Credit Position

A big savings fund can also be of benefit if you do find yourself needing to take on debt. Creditors will often use your savings history to assess your risk profile, so consistently putting cash into your business savings can help peg your business as a good debtor. Having a decently sized savings fund can, therefore, be part of a long-term strategy to earn good credit.

5. Instills Good Financial Management Habits

Consistently putting away money for savings encourages personal discipline and responsible financial management, both of which are always important when running a business. Once saving becomes a habit, it can translate into better, less emotionally driven decision-making regarding expenditures. Over time, these small decisions can help shore up the stability of the business and make it ready to handle any crisis.

6. Bigger Savings Means More Interest Earnings

A larger savings account balance potentially means higher earnings from interest. If you’re able to maintain a substantial savings fund at an industry-leading business banking institution, you can maximize the return on idle funds. This gives you extra income with which to reinvest into the business and manage inflation.

7. Improves Your Business’s Reputation

Taking all the other benefits into account, it’s easy to see how a sizable savings account can enhance your business's reputation among its stakeholders. Having a large savings fund demonstrates both reliability and a commitment to long-term success. The positive reputation that you build alongside your savings fund can open doors to better opportunities that could take your business to the next level.

Save, Earn, and Do More with a Maya Business Deposit Account

A Maya Business Deposit account will take your business savings further than you thought possible. With its high interest rates, superior convenience, and free fund transfers, you’ll find it to be the best online business banking product for your growing business. To enjoy the savings benefits of Maya Business Deposit, simply create your Maya Business account today.

Setting up a Maya Business account immediately gives you access to a high-performance Maya Deposit account for settlements and for receiving funds from Maya Flexi Loans. Maya Business Deposit has an industry-leading 2.5% per annum interest rate, which means you’ll earn PHP 25,000 in interest per year on just a PHP 1 million deposit. Even better, you’ll enjoy free cash transfers to your partners and suppliers via InstaPay and PESONet, saving you cash on your daily business banking transactions.

Once you’ve successfully created your Maya Business account, you’ll immediately be put in line for a no-collateral Maya Flexi Loan offer valued up to PHP 2 million within just 3 months, just what you need to cover bigger expenses outside of your savings account. For better subsequent loan offers, simply keep using Maya Business as your primary processor for all wallet and card payments.

Sign up for Maya Business to access Maya Business solutions and unlock new saving and earning opportunities with your Maya Business Deposit account.