Credit Evaluation School - May 2023

MATCH THE RED FLAGS TO THE EXAMPLES PROVIDED

New Loan Products

• “Could you send someone out to the house your bank is financing? There isn’t a door on it any longer, and I think animals are living in it.”

Lack of Collateral Inspections

• Smalltown Bank has agreed to be the primary provider of chicken house financing for a regional chicken integrator. Smalltown has no previous agriculture lending experience and lacks knowledgeable staff.

Annual Clean-up of Operating Lines of Credit

• Cycles R Us has a $100M operating line of credit which has been fully advanced for four years.

QUESTIONS?