| mjl - 2/27/2015 06:30
having an operating loan or not really don't mean much by itself. Working capitol and other ratio's is what matters, and you probably won't be getting a loan if their screwed up to bad.
A lot have operating loans that are used as marketing tools, prepays, sell the carry. etc.
The real story will be in 3-5 years if things don't adjust.
Exactly, if you are borrowing money at 3.5% and prepaying expenses and getting a 12-15% discount for 4 months or selling grain you have stored in your paid for bin at .20 better for 3 months. Who will make more more money, the guy with no operating money or without? Borrowed money can and will make you money used correctly, but some think they are money ahead because they are paying no interest. I also know some guys can and do operate all on cash, to each their own. |
If 2009-2010 is 2014-2015 here it is...
