For many small businesses in the Philippines, navigating a competitive market comes with unique opportunities and challenges. Limited resources, cash flow management difficulties, and the need to adapt to rapidly changing customer expectations are just a few of the hurdles they face. These challenges can further be compounded by traditional or inefficient methods of managing finances, such as manual bookkeeping or relying solely on physical transactions, which often lack the efficiency needed to thrive in today’s fast-paced business environment.
Fortunately, digitalization has emerged as a practical solution to these challenges with tools that streamline financial processes now widely available to small business owners and their people. These technologies help small businesses save time and empower them to make data-driven decisions and scale more effectively. In a way, digitalization has become a game-changer for the financial management of small businesses in the Philippines.
In this article, we’ll explore the specific ways digitalization is helping small businesses overcome common challenges and thrive in the competitive landscape of modern commerce.
1. Digital Banks Offer an Attractive Alternative Where Business Banking Is Concerned
It’s a well-known fact that traditional business banking solutions typically come with minimum balance requirements and lower interest rates. This isn’t always ideal for small businesses, especially those operating on tight budgets. This is where digitalizing business banking can offer a significant advantage.
Particularly, digital banks in the Philippines like Maya have transformed the financial landscape by offering high-interest business deposit accounts with no maintaining balance. As a result, business owners no longer need to worry about keeping a certain amount of money in their accounts to avoid monthly fees. Instead, they can redirect this money toward efforts to grow their business further.
2. Accounting Software Helps Streamline Financial Operations
Managing finances manually or through spreadsheets can quickly become overwhelming, especially as businesses grow. Thankfully, cloud-based accounting software has made it possible for small businesses to automate and streamline their financial operations with ease.
For example, automated invoicing and expense tracking systems allow businesses to generate invoices with just a few clicks and to automatically match incoming payments with outstanding invoices. These systems also generate financial reports, saving small business owners countless hours that would otherwise be spent on manual calculations and data entry.
Moreover, cloud-based software ensures that all business data is stored securely and can be accessed from anywhere, at any time. Whether a business owner is at home, on the go, or at a remote location, they can stay updated on their financial health and make decisions with up-to-date data. This reduces the risk of errors and discrepancies, which allows owners to make more informed financial decisions.
3. Digitalization Improves Cash Flow Management
Cash flow is the lifeblood of any business. Delayed payments and inefficient tracking of income and expenses can disrupt operations. With digitalization, modern tools can improve monitoring and control of cash flow.
Digital banking platforms, for example, offer real-time tracking of transactions, which helps business owners stay updated on their finances. This level of transparency ensures that incoming and outgoing funds are accounted for, reducing the risk of overspending or missed payments.
The convenience of online business banking also plays a significant role in improving cash flow management. Business owners can easily access their accounts anytime and anywhere, enabling them to transfer funds, pay bills, or check balances without needing to visit a bank branch. Also, owners who prefer to do their business banking online simplify the process of paying suppliers and vendors. This ensures smoother operations and strengthens business relationships.
4. Modern Payment Platforms Provide Customers with Multiple Payment Options
Another crucial component of financial management for any business is the ability to receive payments efficiently. In the Philippines, where cashless transactions are increasingly becoming more popular, offering a variety of payment methods is now a necessity.
Many businesses have come to rely on digital payment solutions providers like Maya, which allows them to cater to their customers’ specific preferences. This is very important in a country where the payment landscape is becoming more and more diverse.
Maya Business tools allow businesses to process their customers' preferred online payments seamlessly, whether they’re paying by credit cards, debit cards, QR Ph, or e-wallets. Maya Checkout, our flagship payment gateway, enables the acceptance of a comprehensive range of digital payments directly on the businesses’ e-commerce websites. For customers who prefer to transact via email or instant messaging, Payment Links and Maya Invoice Payments are convenient solutions. In-person transactions, on the other hand, can also be effortlessly handled through the reliable Maya Terminal device.
5. Digitalization Enhances Financial Security and Fraud Protection
As small businesses handle more online transactions, cybersecurity becomes an increasingly important concern. Fortunately, most modern digital tools offer robust security features that help protect business data and customer information.
Many digital platforms employ two-factor authentication, which requires users to verify their identity through two forms of identification—such as a password and a code sent to a mobile device. This added layer of security makes it harder for unauthorized individuals to gain access to sensitive business data or funds.
6. Digital Banks Make it Easier to Access Loans
For small businesses, access to credit is critical for growth and sustainability. The problem with this is that traditional banks often impose stringent requirements, extensive paperwork, and collateral. This makes it difficult for small business owners to secure funding.
With digital banks, loan products specifically designed for the needs of small businesses are more accessible. Digital banks in the Philippines provide a range of loan options that cater to the financial challenges faced by small businesses. These loans often have lower interest rates, simpler application processes, and flexible repayment terms compared to loan products from traditional banks. Digital banks also streamline the loan application process by leveraging technology to evaluate creditworthiness and to conduct know-your-customer (KYC) procedures. This means small business owners can apply for loans online and receive approval in no time, all without visiting a physical branch.
Financial Management Digitalization Made Easy with Maya Business Solutions
Start digitalizing your small business’s finances by signing up for Maya Business.
When you set up a Maya Business account, it lets you open a Maya Business Deposit account and use 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. Furthermore, you’ll be able to send money to your partners and suppliers for free via InstaPay and PESONet, letting you save more.
Additionally, signing up qualifies you for a no-collateral Maya Flexi Loan offer of up to PHP 2 million in just 3 months, allowing you to have another funding source to further develop your business. Moreover, you can improve future loan offers simply by using Maya as your primary processor for all your wallet and card payments.
Sign up for Maya Business today to enjoy the benefits of Maya Business solutions.
