In this article, the CEO of TKX Motorsports, James shares his experience of managing the business through the pandemic with the support of subscription-based financial service from Equeduct.
Elon Musk once said starting a business is “like eating glass and staring into the abyss.” After eight years of starting, growing, closing, and selling companies, I can wholeheartedly say those starting companies is one of the most (self-inflicted) painful experiences in my life. There are plenty of challenges. They are of various kinds such as growing a business on a shoestring budget (usually with your own money), vendors that almost never pay in the terms negotiated, and inventory pricing always inching up. In addition to that, I had to ensure that every person in the company who supports and empowers our dream is compensated fairly and on time. To top it off, all the challenges too often come at you all at once from every angle, unfortunately not in a linear fashion.
Despite these obstacles, I have been fortunate, as many, if not most, of my businesses, have seen consistent growth year after year, all while expanding into new regions and diversifying across new product lines. I learned early on that a disciplined cash management approach to business allowed room for errors and experiments. Equeduct gave us an opportunity to “fail fast,” while understanding the market we are in. This allowed us to do iterations improving our products and services, which helped us to align our offerings to our customer’s expectations. This all held true until we faced the global pandemic and the resulting economic recession. Nasib Taleb believes this current pandemic is not a “black swan” event. Since we had a clear vision even before it occurred. However, anyone who is trying to run a business would likely respectfully agree to disagree with him on this matter.
Impact of Covid-19 pandemic
Initially, when the pandemic hit, it seemed the impact will not be significant, however, with each passing day, the enormity of what we were dealing with increased. The terrible impact echoed through not only the United States but all throughout the world. Fast forward to six months later, the disciplined cash management approach was replaced by running headfirst into business and personal savings accounts, leveraging high APR credit cards to obtain gaps funds to buy inventory, and making payroll, among other things. With the foregone promise of the PPP loans, the temporary relief ended and we were forced to look elsewhere.
Ultimately, these led to knocking on the doors of small business loan companies, which provided capital in various forms; the line of credit, invoice refactoring, term loans, etc., each type of loan with its own rates, terms, and disclaimers. After taking a deep look, we quickly realized that many of the small business loan companies we were evaluating were not suitable options. That is when we came across Equeduct.
Equeduct as a financial partner
Other small business loan companies offered very high-interest rates and payment structures that were not ideal for my businesses. However, Equeduct offered something unique, a subscription-based finance service. This provided seamless access to capital when I needed it at a lower rate. The payment structure also made sense.
Equeduct offers a digital wallet that is available 365 days a year. The wallet allows me to have a transparent view of my line of credit. It easily transfers funds at any time. Most importantly it allows me to have peace of mind. Additionally, Equeduct has a streamlined online process for me to get the funds I need the same day. I have realized that Equeduct is a performance and relationship-based lender. The team values me as a business partner. Equeudtc rewards my payment performance by continuing to improve capital options for my businesses. Given this incredible model, I truly believe I have found a long-term financial partner. With that said, I would highly recommend Equeduct to anyone and encourage others to also adopt this new model in order to obtain capital.