One of the key things that happens in a farm business is that we have to ask for help in terms of financing our ideas. An essential aspect of this is that when you go to people asking for money, you must realize that by giving you money they are assuming a risk. Therefore, it is essential to be able to put yourself in the position of the person you are asking for help from, and try and get their perspective on how they make decisions.
Diane Szumlas explains that in order to put yourself in the position of the lender, you must understand the 5 C’s of Credit: character, capacity to repay the loan, colalteral, capital and conditions affecting your farm business.
Overview of the Five C’s of Credit