The first step to successful borrowing is understanding its use, Lance Fulton of Kennedy & Coe told attendees at the Top Producer Young Farmer Seminar. "Interest is money you can't get back so it needs to be used on assets that produce enough return to make it worthwhile.”
Fulton and farmers attending say they are seeing the following changes in banking:
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- "Regulators are on banks worse than in the early 1980s [in terms of oversight]”.
- Some banks are requiring more collateral.
- They have raised the standards on the quality of records you need to provide.
- Some require borrowers of $1 million and above to provide financial records signed by an outside CPA.