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| My lender want cash in the account, hence the term “margin money”
They expect assets as well, plus funds deposited into account. It’s their way of saying whatever your profit is at the end of the year, we don’t want you taking it all out of our bank and putting your balance to “0”
They want profit from the previous year left in the account, to be used as “margin money” for the following year’s operating loan.
Equipment is a depreciating asset and not very appealing...
As the saying goes “cash is king” | |
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How much working capital per acre does your lender want?
