Need financing.

Question

Started a new trucking business 2 and a half yrs ago.  Haven't made a dime yet but paid 2 employees salaries.  Started the business with help from corn and soybean business.  Losing equity and now are getting no answers from the local bank.(owns probably 20 other banks in metro areas).  Tired of loan officer not answering phone calls.  Should I be looking for other banks?

Answer

Around here the truckers charge whatever the drivers he wage is if they have to wait more then an hour.  also they change price based on price of fuel.  sucks but I understand they have to make money otherwise they will not be around and we will not be able to get the crop to town.  I think most farmers would understand if you have to charge more to make it

Answer

I think you should be doing a few  things.  I think you need to take a real hard and critical look at the trucking business.  I tried it several years ago as a way to retain and pay for employees that I needed on the farm at other times.  The problem is that it was very difficult to generate enough revenue with the trucking to make it work.   Loads didn't pay enough, wait times for loading and unloading were too long so loaded miles driven were not enough, license and insurance fees ate up too much etc.  In the end,  we pulled the plug on it and put farm plates on the semi.  So, bottom line is it burned up money without a return.  Really bad way to keep employees.  You may make it work,  but I think you need to ask what are your goals and are you reaching those after 2 years.
I would also suggest you ask yourself why a bank wouldn't be returning your calls.  It may be the wrong bank for you and a smaller more personal relationship with a local bank would be a better fit.  Or,  it may be your operation is under performing and they don't want to have the hard talk until it's too late.  
Sorry for this,  but 35 years ago I made a lot of mistakes and needed someone to give me straight advice.  
Look at what your goals are, what you are doing to reach those goals, and are you working smart every day to achieve those goals.

Good luck !

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