By Michael Farmer, Chief Operating Officer
When profits are up it’s easy to think about what your lender can do for you: finance new equipment, maybe a new building or a land purchase. When times get a bit more stressful however, your lender may not be on your radar as someone to turn to for help. It’s important to know that we are here for you both in good times and bad.
If a time arrives when finances feel challenging it is important to communicate with your lender and work together to create a plan. We understand the ups and downs of agriculture and also how much heart and soul our borrowers invest in their businesses. Below are some options you and your loan officer can discuss:
- You can’t manage what you can’t measure, so having quality financial records to accurately analyze your balance sheet and income statements are crucial. We have several specialists on staff that can assist with the creation and maintenance of financial records.
- Joanna Lidback, our Business Consultant, can offer expertise with budgeting, business planning and analysis, transfers and transitions including an exit strategy if that is where your planning takes you.
- If the current debt load isn’t affordable you may need to consider selling non-essential assets. Often, it’s not an all or nothing scenario, Work with your loan officer to develop a plan. After reducing your debt, we may be able to re-amortize your loans to lower the payment.
- We may be able to re-amortize the loan in order to lengthen the term and reduce the payment.
- If we are not able to lend new money based on your current financial condition we may still be able to defer principal on the current debt.
One of our jobs as your lender is to help you preserve your hard earned net worth. Loan officers monitor this as part of our annual financial review.
As part of the Farm Credit System our mission to support rural communities and agriculture with reliable, consistent credit and financial services, today and tomorrow. Please contact us at email@example.com
to see how our services or options can help.