Finally finished all the requirements for a short term renewal (six months) of our dairy operating loan with the bank. Unfortunately it took two months to complete the paperwork and appraisals to finalize the loan.
The bank backdated the loan to Sept 30, 2009, so the maturity date is March 31, 2010. I tried to convince the bank the six months should start from the closing date of the loan, November 20th, 2009, but no dice. Bank said I rode for free for two months and would not adjust the maturity date.
Bank suggested that I continue to look for new financing sources during the next four months in case that milk prices don't improve enough to cash flow and generate profit for the business. Without profit the Bank said it would not be interested in renewal the operating loan.
Hoping and praying for the next four months. . .
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