aplusmnt
Well-known member
somn":2hnry2vf said:I wished cattle feeding was as simple as janitor. Several years ago I borrowed money to make payroll. It had nothing to do with me being a bump in the road away from Fannie and Freddie it had to do with a packer I sold hundreds of head of cattle to going thru a buyout by another company. Thru a simple banking error all the checks they sent out during the merger or aqusition or whatever it was came from an account with no money in it. Until they could figure out what they or whoever else was at fault had done wrong nobody has any money. Now imagine if you could what it is like to know your cattle are dead and a company you have done business with for years has been bought out by someone with apparently no money. I borrowed to make payroll. The bump in the road was somebody elses but it still affected me. I can only assume you have never sat on a overdue account large enough to effect your bottom line. Some business do.aplusmnt":2hnry2vf said:If a business has to borrow to pay pay roll then they are just a bump in the road away from being a Fannie and Freddie!
Those are the kind of situations that business do use their credit for, but once they get that Temporary situation under control they pay that pay roll money back and go back to business using the Operating capital they have saved.
I am not anti credit, just to many businesses today use credit as a crutch to poor planning. Credit has become the norm of doing business today, not just for start up or expansion but every day operation. I believe if you have to borrow for expansion it is dangerous, but if you have to borrow for day to day operating expenses such as feed, then it is ultra dangerous!
Credit has become so much a part of peoples lives today that to think of running a business or even buying a couch with out it seems alien to them!