View: Hall On Dealing With The Credit Crunch
October 28, 2008
Greenhouse Grower's Online Editor Sara Tambascio recently talked to Texas A&M's Charlie Hall about what role suppliers and distributors play in the credit situation in floriculture and how growers can weather these volatile times.
"We've had credit problems before," Hall says. "We've had high oil prices before. We've had housing markets that have turned down on us, but we've rarely, if ever, had all these things happen at the same time. We're seeing unprecedented times and that's why you've seen Congress take unprecedented action in terms of the bailout bill."
You can listen below to more of our conversation with Charlie Hall, including how developing a better relationship with your bank can help.
Comments:
October 29, 2008
There is an old saying in business: "money talks and bulls**t walks" Banks are not in business to loan money to people that are in trouble. Banks are in business to loan money to people with good businesses who need capitol to make even more money and keep their own cash available. Floriculture businesses that have questionable balance sheets and are short on cash for operations are in a very difficult position. Floriculture businesses that have strong balance sheets will be able to find credit fairly easily in most parts of the country assuming the loan amounts are under 10 million dollars.
October 30, 2008
"questionable balance sheet" what is recomended, both short term & long term?
November 3, 2008
What Dr. Hall says is exactly what we are starting to see in the industry with even some large national nurseries in bankrupcy. This will be a shake out year.
November 4, 2008
Small and Medium sized operations are not the only growers affected. Many of the largest growers are the ones who are most leveraged. Many or most of these growers are dealing with big box stores and are feeling some of the most intense pressure on margins. These two factors make these large growers potentially even more vulnerable to the current financial crunch.
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