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| Probably the best a banker can do is work with the borrower to put together an accurate global cashlfow projection and stress test it. Get these numbers in front of the borrower's nose and explain why it matters and why working capital matters. I believe this is probably what Reality means by educating and it is 100% my expectation for all my bankers. We don't simply say yes or no, we owe them an explanation if we say no. We explain why we won't be doing that loan.
Now, if it is an obvious yes, we skip the exercise, we talk about college sports or whatever. No need to go there with many. A lot of guys are in a middle ground where we don't offer input unless asked for it.
Edit add: My accountant has never seen or asked for a balance sheet or cashflow projection. Great accountant though, perhaps I am the odd man out here?
Edited by reformedbanker 7/28/2025 12:25
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rise of farm bankruptcies due to trade war???
