Farmer Finance: Balance Sheets Trump Cash Flow
Forget what Grandpa told you about cash flow. The new working capital game in agriculture is all about how well you can jiggle your balance sheet, and not everyone’s coming out ahead.
⚡ Key Takeaways
- Agriculture's working capital is shifting from cash flow to balance sheet mobilization for credit assessment. 𝕏
- This change primarily benefits lenders by allowing for larger, asset-backed loans. 𝕏
- Smaller or newer farms with less tangible collateral may find it harder to access capital under the new model. 𝕏
- The trend reflects a broader move in B2B finance towards complex capital structure optimization. 𝕏
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Originally reported by PYMNTS
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