Banking services providers typically serve as a lifeline for small and medium-sized enterprises (SMEs) and startups, but they can also be a source of frustration for business owners. Many up-and-coming entrepreneurs find that traditional business banking providers no longer match the level of financial agility that modern enterprises need to support their intended trajectory and meet their growth targets. Below is a list of the common frustrations that SMEs and startups face when transacting with financial services providers that refuse to change with the times.
Large Maintaining Balances
Many financial institutions demand hefty maintaining balances from their corporate customers. For budding enterprises, meeting this specific requirement means tying up crucial capital that could otherwise be strategically invested in the business. Such a decision can restrict cash flow, limit financial flexibility, and stand in the way of allocating resources properly. For instance, enterprise owners may find themselves unable to seize timely investment opportunities or navigate unforeseen challenges despite having funds. This is because they need to keep their funds in their account to meet the minimum maintaining balance set by their small business banking provider, which could be detrimental, especially during lean times or when a business is just starting out.
To get around this common issue, entrepreneurs can look into business banking products that don’t require a maintaining balance. One such option is Maya Business Deposit, a banking account that Maya Business specifically designed for Filipino businesses. Using such a flexible solution, entrepreneurs have the option to maximize their financial resources whenever the situation calls for it or when an opportunity to expand their operation arises.
Low Interest Rates
Unfortunately, many banks also offer their customers very low interest rates on savings and business accounts. It makes little sense, then, for some SMEs to park their funds in their business accounts, as this will limit their potential financial return. Taking on the role of a growth partner, Maya Business presents startups and SMEs instead with a 2.5% per annum interest rate, which is 20 to 25 times more than what other financial institutions offer. Such an option enables businesses to optimize the returns on their deposited funds and make their account contribute more to achieving their expected financial goals.
Complex and Lengthy Account Opening Procedures
It can also be quite a challenge to open business accounts with some financial services providers. Even some financial institutions that may have online business banking platforms can have lengthy and complex requirements that business owners should meet before they can open an account. The extensive documentation and bureaucratic processes of opening a business banking account can prevent enterprises from accessing the financial services that they immediately need. Such a situation can be particularly hard for startups that might urgently need financial tools and services to kickstart their operations. It’s not hard to see how this can be a source of frustration for business owners.
Modern business banking online platforms like Maya Business, however, steer clear of this pitfall by using digital onboarding and simplified documentation to streamline the account opening process. This means that small business owners can open an account anytime and anywhere without going to a physical branch.
High Transaction Costs
Traditional banks often impose considerable fees for transactions, wire transfers, and other financial activities. These high costs reduce overall profitability and create a discord between the fees incurred and the perceived value of services provided by financial institutions. This is especially felt by SMEs and businesses that are keen to accept a wide range of payment options from their customers.
This concern is not lost on modern financial services providers. To compete with traditional banks and cater to the needs of SMEs, forward-thinking financial services providers make every effort to bring down transaction costs for their partner entrepreneurs. Maya Business Deposit, in particular, offers free transfers via PESONet and InstaPay to entrepreneurs, helping them save more money for their business
Limited Access to Credit
Securing credit from traditional banks can be challenging for SMEs and startups due to stringent lending criteria or the perception of higher risk associated with newer enterprises. Consequently, the lack of credit impedes the growth and expansion plans of SMEs. This also drives businesses to seek alternative options such as peer-to-peer lending platforms and online lenders that offer accessible credit solutions.
Maya Business makes it easy for its customers to access a flexible credit line that can be used to add to their capital or expand their operations. The provider of business banking Philippines’ startups and enterprise trust offers Maya Flexi Loan, which enables users to access up to 2 million pesos in credit. This amount can be used up in separate loans and comes with borrower-friendly interest rates, making it a practical option for businesses that are seeking to supercharge their growth.
Outdated Account Management Technology
Outdated account management technology, including legacy systems, can lead to delays in processing payments and reconciling accounts. This impacts day-to-day operations and hinders the business from obtaining real-time financial insights. By contrast, modern business banking providers with advanced technology, such as Maya Business, can offer streamlined processes, faster transactions, and a more efficient account management experience. By signing up for Maya Business, entrepreneurs get to have total control over their business payment, banking, loan, and cash flow solutions that they use daily in an all-in-one-dashboard.
Start enjoying all these benefits for your business by signing up for Maya Business today. This unlocks the Maya 1-2-3 Grow bundle, a special offer that lets you enjoy a merchant discount rate (MDR) discount of 1% on all QR Ph payments for 3 months upon onboarding. This translates to PHP 14,600 in savings for every PHP 1 million worth of QR Ph sales. With the bundle, you can also take advantage of opening a Maya Business Deposit account and using it as your settlement account. With an industry-leading 2.5% per annum interest rate, you’ll earn PHP 25,000 in interest per year on a PHP 1 million deposit. Signing up for the bundle also qualifies you for a no-collateral Maya Flexi Loan offer of up to PHP 2 million in just 3 months. Just use Maya as your primary processor for all wallet and card payments. The more you use Maya, the better the loan offer.
Sign up for Maya Business today today and enjoy frustration-free banking experiences with Maya Business.
