Amy Gales, executive vice president of CoBank’s regional agribusiness banking group, explains: “The last thing a borrower wants to do in this new world of volatility is borrow more than it can handle. You still need some cushion for the unexpected. If you run into a period of continued volatility, your operating loans will need to be increased and the cushion can be eaten in a short amount of time.”
To summarize: Do not borrow every dollar made available to your company.
Proper paperwork is pivotal
Potential borrowers should have a firm financial package prepared. The key items include: