John Ellsworth at Success Strategies helps us focus each month on where we are in our business and where we need to go next.
Given the difficult state of the dairy industry, lenders might, in some situations, be taking longer to make their credit decisions. Is this truly a tough year? YES!!! Is it the end of the world? Hardly. Is your loan renewal taking longer than usual this year? Perhaps, but so are the renewals of many other dairy farms.
Do you feel like your lender is being tough on you?
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It’s time for a reality check. Maybe I’ve missed something. I’ve been in the dairy industry for almost 40 years. I got my first job in it when I was in my early teens. Now, I think I’ve seen it all. A program for banks called TARP (Troubled Asset Relief Program) now being in need of a new name: TRAP! Let me tell you why I’m so ticked off.
To view the rest of the information on this page you need to get a free membership to my site, or simply login with your existing account. If you have any questions or problems, please contact me. Thanks!
This is a question many people are asking. I believe it’s something we need to be looking at regularly. As far as when you should fix them, that depends on many factors.
* Are you planning to stay with your current lender?
Are there any Prepayment Penalties? They have committed to investors to pay a fixed rate on their funds. Thus, you will likewise be committed to the bank.
* Will you be increasing your loan amounts soon?
Be certain that this doesn’t impact your rates. Often, they’ll set up fixed rates on portions of your loan at various maturities.
Wow! Wasn’t 2009 a real tragedy in terms of overall cash flow and bottom line results? It was absolutely pathetic for most producers. Since then dairymen have been enjoying the fruits of higher milk prices. How can we avoid revealing the same calamities again? What could you have done differently as a manager? These are critical items to spend some time on.
The world of finance continues to amaze me. Recently, I had two clients whose banks decided that, in their opinions, they can no longer survive.
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One of the most common problems faced by many businesses today revolves around their ability to obtain financing they need. This challenge becomes even more pronounced when we are faced with a tight lending environment. This has been compounded by the Sub Prime Mortgage mess and its related financial issues! This certainly magnifies the importance of maintaining a solid banking relationship.
Whenever one of my clients or a prospective client I am working with gets turned down on a loan proposal, it is imperative that we review the facts and explore “why?”
