When a banker provides a loan, she is expressing confidence in your business, and your business’ ability to repay the loan. Your job is to convince her that this is the case.
And the time to do this isn’t when you need a loan.
Even if you don’t have any reason to think that you might want a line of credit to manage cash flow, it makes sense to establish a line of credit when you have plenty of cash, and when things look good in your farm accounts.
That may seem counterintuitive, but your lender wants to invest in a successful enterprise – not in an enterprise facing a cash flow crisis. So talk to your lender when you’re flush with cash, not when the noose is tightening.
And the time to do this isn’t when you need a loan.
Even if you don’t have any reason to think that you might want a line of credit to manage cash flow, it makes sense to establish a line of credit when you have plenty of cash, and when things look good in your farm accounts.
That may seem counterintuitive, but your lender wants to invest in a successful enterprise – not in an enterprise facing a cash flow crisis. So talk to your lender when you’re flush with cash, not when the noose is tightening.
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