Credit Evaluation School Instructor eBook - Oct 2023

People:

Borrowers: Jack & Jill Farmer Cash Crop Farming Supported by Off Farm Income

Purpose:

Renew $450,000 Operating Line of Credit Purchase a tractor

Protection:

All Assets of Debtor Real Estate taken as Abundance of Caution Collateral Coverage on current statement 1.60, if line fully extended 1.09 Income from Operations as well as Jennifer’s outside employment. Liquidation of Collateral

Payment:

Problem: Prospects:

Long term asset financed with short term debt

Continues to pay as agreed. Farm and outside employment income remain stable.

Commercial Credit Quick Hitter ‐ Farming