The signs of financial stability aren’t always obvious, even to experienced business owners. As many have learned the hard way, generating profits is great, but in a lot of cases, it won’t always be enough, especially if you have very ambitious goals. In reality, achieving stability is usually less about raw profits and more about liquidity and resilience against wider market challenges.
To achieve these, it’s essential to do business banking online to support smoother 24/7 financial management. The Maya Business Deposit savings product from fintech pioneer Maya is designed to help Filipino entrepreneurs grow their savings with online business banking tailored to the needs of modern startups and SMEs. With free transfers via InstaPay and PESONet and a 2.5% p.a. interest rate, your deposited funds will earn between 20 to 25 times higher interest than if they were held in a typical business bank account.
However, relying on better business banking products and services is only the first step to achieving stable finances. Take the following ideals in mind as you build up your SME’s financial capabilities:
1. Consistent Positive Cash Flow
Investors and lenders tend to pay far less attention to profits than they do to cash flow. This is because financially strong SMEs are most often typified by cash inflows that consistently exceed their outflows, even during seasonal slumps.
As a rule, you’ll want to focus on positive cash inflows rather than profits, especially at the beginning, when profit figures are often misleading. Tracking cash flow instead of profits should also help you identify patterns like seasonality and trends to further optimize your business’s earning potential.
2. A Low Debt-to-Equity Ratio
Financially stable businesses maintain a healthy balance between borrowed funds and owner investments. They aren’t necessarily debt-free, but they do not need debt to finance operations.
If you need a safe source of instant funding, consider leveraging Maya Flexi Loan. This easy-to-use loan product lets qualified Maya Business users unlock up to PHP 2 million in funds with simple terms, making it perfect for all kinds of scenarios that demand instant liquidity.
3. Diversified Revenue Streams
Relying on a single income source or product can expose businesses to high market risks. While there are exceptions, financially strong enterprises generally diversify their revenue streams by exploring new products, services, or markets.
If you’re struggling to diversify revenue sources, consider adding a new e-commerce component to your operations. With Maya Checkout, you can easily integrate a secure online gateway to your website, allowing you to expand your market reach. This simple move can ensure that your business is able to tap into new customer segments, boosting its overall resilience.
4. Efficient and Credible Expense Management
Stable businesses are always in touch with their spending. You must make it a priority to regularly review operating costs and find new areas for optimization. Consider doing a periodic review of supplier contracts or streamlining processes through technology to keep your baseline costs down and free up more cash for important growth initiatives.
5. Immediate Access to Sufficient Emergency Funds
Though the figures will be different for every business, a cash reserve equal to three to six months of operating expenses is usually a good sign, as this means that the business can explore new market opportunities with minimal risk.
Having enough funds in your Maya Business Deposit will let you handle most economic downturns as well as operational hiccups like equipment breakdowns without scrambling for external financing. With Maya Deposit’s high interest rates, the burden of setting up an emergency fund is also less than it would be with traditional banks.
6. Clear and Properly Audited Financial Records
Investing in proper bookkeeping and consistent auditing will help you keep track of your business’s finances and allow you to make a strong case if you need help from investors or lenders. With Maya Business, you’ll have a clear view of all the transactions that go through Maya’s tools. The Maya Terminal can even link up with your electronic cash register to provide sales data in real time.
Achieve Total Financial Stability with Maya Business Solutions
Maya gives you the means to turn your SME into a financially stable operation. With Maya Business Deposit, you’ll enjoy one of the best interest rates available to Philippine SMEs, accelerating your business’s journey to true stability. Sign up for Maya Business to access a Maya Business Deposit account and other Maya payment solutions.
Signing up for Maya Business automatically qualifies you for a Maya Business Deposit account. At a 2.5% per annum interest rate, funds in your Business Deposit can grow by PHP 25,000 per annum on each PHP 1 million deposit. A Maya Business Deposit account also enables you to make free PESONet and InstaPay transfers to partners and suppliers, saving your business cash on its regular expenses.
Approved Maya Business users also qualify for a Maya Flexi Loan offer valued at up to PHP 2 million in just 3 months. Use your Maya Flexi Loan to address immediate emergencies or purchase income-generating assets that improve your business’s stability. Enjoy better Maya Flexi Loan offers simply by using Maya as your primary processor for all wallet and card payments.
Complete your Maya Business application today to enjoy your own high-performance Maya Business Deposit account. Explore Maya’s selection of business solutions to find out how they can contribute to your business’s financial stability.
