The Rural Voice, 1986-08, Page 46DIETRICH FARMS LTD.
R.R. 1, Shakespeare, Ont.
• Yorkshire
• Landrace
• Hampshire
• Duroc
See you at the
Pork Congress
Don (4 Ray Dietrich 519-655-2245
R.O.P. Tested
Health Approved
"GOOD"
Your inquiries
are always
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1100 Wallace Ave. N., LISTOWEL
44 THE RURAL VOICE
ADVICE
COMPETITION
AMONG LENDERS
When it comes to making a
banker more approachable —
especially where farm financing is
concerned — there's nothing to
beat a good dose of stiff competi-
tion.
There's not much doubt that the
growing rivalry between financial
institutions is working to the
farmer's benefit. Have you notic-
ed, for example, that your banker
is now a little more responsive to
your borrowing needs? And have
you sensed a change — for the bet-
ter — in the traditional banker -
farmer relationship?
This doesn't mean, though, that
you can now dictate your own
terms to your banker. Not yet.
There are still some things you
should do to keep your relation-
ship on a smooth footing.
The first key requirement, of
course, is personal compatibility
— the two of you must get along
together. This is important when
you're negotiating loan rates,
otherwise you may feel in-
timidated. Although it may be
possible to get a better deal from
another institution, it just may not
be worth placing your present rela-
tionship in jeopardy.
When applying for a loan, pro-
vide your banker with all the infor-
mation necessary to get the loan
approved. And if a capital outlay
is involved, the two of you should
figure out the most manageable
combination of term and operating
loan — with interest rates ap-
propriate to the assets you're
pledging.
Before you even start talking to
your banker about a loan, you
should first determine exactly how
much you need, and the terms you
can live with, including interest
rate. If you feel that the rate isn't
fair, then you won't be happy later
on.
Bankers love security — and will
take all you're prepared to pledge.
But be realistic. Don't, for exam-
ple, put up security worth $200,000
against a $50,000 loan. And don't
let a banker intimidate you. Banks
are in the business of lending
money. If you don't like the terms
one bank offers you, then say so.
And tell your banker that you're