This is a note that Charlie Davis, President at Moxey, sent to Moxey ambassadors and Moxey community leaders to better prepare them for potential impacts from the coronavirus and accompanying economic shocks. Davis says the company is hoping to extend several million dollars of credit through the network to help small businesses during the next few weeks.
On Thursday Sequoia Capital called the coronavirus a black swan event.
They noted, that while some businesses would benefit, most are at risk for a drop in business activity, supply chain disruptions, and curtailment of travel and canceled meetings. In many parts of the world, we are already seeing the impact of this in the news.
The Moxey network is uniquely positioned to help businesses survive during an economic downturn and the more prepared we are, the more people we can help.
Perhaps one of the most impactful things that we can do is to help our members improve their cash flow before it becomes an emergency. We can directly improve their cash flow by 1) increasing their credit line and 2) helping them to switch existing cash expenses to Moxey expenses.
The more Moxey dollars that they spend, the more cash they can save for other critical needs as the country and the economy work through any effects from the coronavirus.
It’s not very well known, but Irving Fisher, the most famous American economist of the last century, proposed a nationwide network of community exchanges (much like the Moxey network today) during the height of the Great Depression to help small businesses sustain themselves. We have the infrastructure to do just that.
Industries such as hospitality and tourism could be impacted first, but any large and lasting economic recession is likely to spread.
While large businesses will benefit from Fed rate cuts, most small business won’t. SMEs are the companies that will need capital the most and the ones who will find it the hardest to get.
Members who own hotels, restaurants or transportation companies, as well as those that service them, might benefit by starting now to conserve cash by switching more expenses to their Moxey accounts.
We must be prepared to help our existing members as well as to approve new membership applications as quickly as possible.
Many companies are already relying on Moxey to pay for everyday business needs from accounting and janitorial services to healthcare and construction.
Moxey’s purpose is to help people thrive in business and in life. We can help our members thrive in this environment and raise the tide for our entire community.