Small and medium enterprises (SMEs) continue to be the driving force of the Philippine economy in terms of economic growth and providing employment. This is why many sectors continue to call for support to SMEs so that they continue to exist in the middle of this pandemic.
Based on the results of the 2020 Asia Pacific Small and Medium Business (SMB) Digital Maturity Study, it revealed that small businesses are “pivotal” to the post-Covid-19 economic recovery. SMEs account for 99.6 percent of all businesses, 62 percent of total employment, and contribute 36 percent to the country’s GDP.
Thus, support for these enterprises is essential to keep the economy going.
One of these businesses is Transorient Container Terminal Services (TCTS), a customs bonded warehouse and trucking service owned by Alex Ong. Essentially, TCTS acts as an extension of port storage services outside of the ports themselves.
Alex knows how valuable it is to ensure smooth and speedy operations, especially in this pandemic times. Thus, he applied for BDO Unibank’s Cash Management Services’ (CMS) suite of offerings, including SME Business Online Banking. The service enabled TCTS to run smoothly and continue its operations despite the disruptions caused by movement restrictions and social distancing regulations resulting from the pandemic.
Essential business partners
Ong points out that during a crisis like this pandemic and the declaration of an enhanced community quarantine (ECQ), it is vital for essential businesses to work together. In the case of TCTS, the help it got from BDO allowed the company to continue its operations.
One of Ong’s major concerns was about their messengers who still had to go to banks and other premises to personally collect or deliver checks. Realizing the dangers this practice brings, he instructed his staff to shift to online transactions.
Next in his dilemma was how he can to continue to operate as close to normal as possible despite a pandemic. According to Ong, BDO’s cash management services allowed him to resolve both the issue of safety and business continuity. Using BDO’s e-payment facility, his company was able to make payments to shipping lines, port management companies, suppliers, and other billers.
“ICTSI made it mandatory for clients to pay online. So it’s good that we already have the SME Business Online Banking facility of BDO,” Ong explained. Soon, he hopes to activate the online collection facility so that TCTS would be able to collect payments from their consignees via online as well.
Relying on CMS
Cash Management Services involves managing the flow of funds in an organization or business. Every business has collection and payment needs which if not managed, may cause funds to be misplaced, lost, or untracked.
A CMS provider becomes a key partner in terms of assistance in the management, tracking, and reporting of funds so that a business owner can focus on running the business.
In the case of Alex Ong, it was easier for them to adapt to BDO’s cash management services because they were already transacting online with the port management companies. TCTS is a good example of how openness to change, new technologies, and new processes can benefit a business. It also shows that having the right bank partner helped them thrive during a crisis.
For more information on BDO’s Cash Management System, call (632) 88407500; email [email protected]; or visit www.bdo.com.ph.