By Michaela Schmidt -
Snapshot
- Obtain advice on any proposed security arrangements, particularly where a company is involved.
- Early action is critical.
- If financial difficulties are anticipated, call your bank before you default.
Bob and Sue, two of your favourite long-term clients, operated a cattle grazing business and, like many farmers, relied on bank funding to manage operating costs and seasonal fluctuations.
Their trading activities were conducted in their personal names (as a partnership), and the partnership’s bank borrowings of approximately $2 million were also in their personal names.
