Central Nebraska | ricefarmer14 - 10/29/2015 12:28 Golf nut please explain...if I defer income until January how does that hurt me? Wanting to understand what you are talking about...
I look at it as a missed opportunity. You're allowing someone else free use of your money while you could be using it for operating and or earning interest on it in a CD or savings account. Plus, your money is at risk anytime it is not in your possession. What happens if the elevator/feedlot/ethanol plant gets in financial trouble before paying you? Even if they are bonded you're still only going to get pennies on the dollar.
I'll admit that the hurt of deferred income is quite often unrealized or very small, but it is there. |
Working capital again
