Cash flow and contracts matter. Not collateral.
Most lenders underwrite against land, equipment, or balance sheet history, not the marketing contracts that actually determine a grower's cash flow. Thombar does.
A seasoned operator, first-time owner unable to fulfill a multi-million dollar contract due to cash constraints
Could only fulfill 10% of a six-figure weekly contract with a major packer/shipper.
Thombar extended credit against his marketing contracts alone, even though his cash flow history wasn't there yet. He caught up on input invoices and went on to close an additional contract with a national retail chain.
An experienced, diversified grower borrowing from a sister company to cover labor and input expenses
Orders were capped by cash on hand. He was borrowing from a sister company just to make payroll and pay suppliers on time.
Thombar extended credit against his cash flow and existing contracts, looking at the fuller picture most lenders miss. He started paying suppliers directly and put an end to the inter-company borrowing.
Lines of credit subject to approval.