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Anderson County Kansas | I have never kept very much cash on hand. I have always used it to buy land and grain storage and to update equipment. I am 46 and own 3400 acres, and all but the 800 I just bought from Dad are basically paid for. I have never had trouble getting a loan for whatever I needed. I wonder the exact same thing you ask in your post. I don't see why you would want a pile of idle cash laying around making next to nothing, when you are paying interest on loans, I always just carried a revolving operating loan to smooth out my cash flow. That way you only pay interest on the money that you have borrowed, instead of losing money on a pile of cash sitting somewhere making nothing, I hate to think about all the extra interest I would have paid over the last 28 years if I had kept a bundle of cash sitting around instead of paying it on loans. I guess my banker must have thought different than a lot of them, because that is exactly what he always encouraged me to do.
Edited by cornstalk 1/4/2016 09:55
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Pknoeber and other bankers- working capital from down below
