Creditors

[countryguy]

In light of the recent events with our industry I was wondering what everyones thoughts are regarding how to deal with creditors.
My idea is stuff like machinery where all they have is the machine for collateral push to get payments halted for now with no interest.If they don't go for it and you don't have much into it tell them to take it.If it's worthless to a farmer right now it's also worthless to them.
I have an uncle that is a banker and he tells me that the banks don't know what to think right now.They are expecting to do massive amounts of restructuring come fall but do not want to go out and start calling loans.
Talk to them.We DO have some power in this situation.

[pandiana]

Countryguy:

The word that I hear is that you should have a plan in hand ........ what you plan to do, how you will be managing your operation, how you will be making payments (or why you are proposing to delay payments) ........ you are right the bankers are uncertian as is everyone, the major thing to do is to talk to them and clearly demonstrate that you have strategies in place to deal with certian events in order to deal with your financial obligations. The whole process will demonstrate that you are planning for the immmediate and short term future ............ the thing that would make me uneasy if I was a banker is steady as she goes and requests for more credit ............ agriculture in Alberta may well be going the way of agricutlure in the midwest US - cash basis only!

[lonewolf]

Just talked to my banker today at CIBC and renewed my line of credit. they only asked for the cattle for security. Do they know something we don't?

[15444]

Lonewolf,

Which CIBC? The one in Rainy, Emo or Fort? Maybe I should switch banks! lol

[kato]

Farm Credit has a disaster clause that lets you delay payments and interest.

[Muttley]

Had a cutomer in my dealership this week who told me his banker valued his cows at zero.

Figures he lost about a $100,000.00 in assests in two minutes. He is not a big farmer and that kind of figure hurts his bottum line, especially since his crop is burning up as well!!!

[Muttley]

P.S.

I think it was the Royal Bank but not sure.

[15444]

Probably, The Royal is always out to make money, not help people.