Checklist for Finding a Great Banker for Your Grain Business

It can be very painful for grain companies to change banks. New financial relationships require conference calls, planning sessions, and a lot of documentation. The past three years of low operating line usage have taken the financial pressure off the grain business and allowed some companies to put off the search for new lending partners. That being said, the best time to change lenders will always be when you don't really need one.

Does your lending team fully understand grain merchandising strategies? Have they approved your harvest plan and will they fund your futures positions even with a substantial rally and a drop in historical basis? Will the bank fund the expansion projects and capital improvements on the table for the next few years? It’s impossible to know when volatility will return, we just know it will, and when it does the availability of credit will once again be more important than the cost.

Spend one hour getting the basic documentation listed below in a package and take control of the future of your business by finding a great banker before harvest!

Loan Documentation Checklist

____   Financial statements for past three fiscal years. Most Current Interim financials

_____ Guarantor Financials

_____ Aging Reports, Payables, Receivables, Credit Policy

_____ Borrowing Base (if used)

_____ Grain Flow/ Cash Flow Plan

_____ Entity Documentation

Additional Information on Grain Accounts

_____ Position Report along with accompanying Broker Statement

_____ Copy of most recent warehouse inspection report

_____ Storage Capacity

_____ Copy of Hedging/Risk Management Policy

_____ Outstanding grain contracts list

_____ Supplier list, key competitors, products handled