When you are forced to make your payment late, there is more at stake than just your reputation and pride. Those late payments will undoubtedly cost you more in the form of late fees or a higher interest rate. However, no matter what you do, there will be a time that it will happen to you, and with the prices that we are seeing, this may be the year.
Here are a few do’s and don’ts if you find yourself short on funds:
The real point to remember here is to keep your lender informed and don’t wait for them to initiate the conversation. Address the problem head on and tell them your plan, and don’t make promises you can’t keep. Your lending relationship is one of the most important relationships in your farm operation. Just like your relationship with your spouse, if you don’t communicate, there will be problems. The worst time for lender relationship problems is when times are tough.