Day Co. SD | Agr723 - 3/31/2026 09:22
So you’re saying this person has zero equity in any asset they own.
My guess is when the banker started with him, there was stuff with net worth. Now interest and increased borrowing and asset depreciation has depleted that number greatly.
I know someone dealing with this at the moment. Still not a word of warning from his wet behind the ears loan officer. The man has realized himself that the path is unsustainable. According to his balance sheet, things look bad but not horrible. When you do the liquidation math, it looks horrible. The taxes alone on the loan principal are would be awful hefty.
The only reason he took notice is another person he knows that was “doing good” was recently cut off at the bank.
Edited by Nathan (SD) 3/31/2026 10:19
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Interest on operating debt