At the recent Kansas-Nebraska Agricultural Banking School, we asked bankers what irritates them in dealing with their borrowers. The following is a list of items that were most predominantly mentioned.
Seeing It Before You Put It on the Statement One issue that came to the top of the list is when the lender visits the farm and they see a new tractor or combine that was not listed on financial statements. Bankers stated that this is an example of emotional buying, which often ends up in disaster.
Decision Yesterday Many dislike the customer who needs the money yesterday. This is indicative of poor planning and, again, emotional buying. Yes, occasionally emergencies happen which require response in a New York minute, but a pattern of this behavior is not usually good for the farmer, rancher or lender.
Keeps You Informed The lenders felt this was a two-way street. The producer needs to keep open communications; however, the lender should reciprocate. Also, our borrower panel likes visits even when things are going well, not only in the bad times.
Monday Morning Ideas Monday can be a nightmare day for a lender, particularly after a bad weather weekend. They stated this is when all the ‘outside the box’ ideas come in to be tested. When dealing with your lender, think the new ideas over, write them down and use your banker as a sounding board. Be professional about the use of their time.
Editors' note: Dave Kohl, The Corn and Soybean Digest Trends Editor, is an ag economist specializing in business management and ag finance. He recently retired from Virginia Tech, but continues to conduct applied research and travel extensively in the U.S. and Canada, teaching ag and banking seminars and speaking to producer and agribusiness groups.
To see Dave Kohl's previous road warrior adventures type Dave Kohl in the Search blank at the top of the page.