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Iowa | "Ever business that has ever failed failed because it lacked cash and cash flow. Its never the lack of equity. Its the lack of cash."
If they have plenty of equity but lack cash, why can't they just refinance to get the necessary working capital (or cash)? Is it a situation where they needed to show positive net income to get the refinancing done, but missed their chance to do it when they had a good year?
It looks to me like a lot of land during recent years has been financed or refinanced very close to market value. What's up with that? Are they typically just doing that to lock up a bunch of working capital at low rates while they still can? What happens if land values drop 20 or 30%? I guess it's fine if they still have sufficient cash or other liquid net assets.
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