The effective solution combined financial review with operational diligence, rather than relying on the forecast in isolation. ¹

WorkedDid not

Evidence base

Financial and operational review ¹

Forecast-only review

Field diligence

Plant and dairy visits ¹

Desk review alone

People

Management and guarantor interviews ¹

No direct interviews

Outcome

Credit approval and facility build ¹

Approval without viability support

Cordes & Company assessed the financial operations and forecasts while also reviewing how the projections had been developed and considering the overall business strategy. ¹ This approach matters because the requested line was tied to operating deficits, inventory, and receivables. The lender needed context for how the proposed operation would use cash as it started.

The assessment also tested the proposal in the field. Visits to the plant and dairies and interviews with management and guarantors added evidence beyond the model. ¹ The resulting viability report enabled the lender to approve credit, and the producer was able to build the new facility. ¹

Lender engaged independent assessment to underwrite new powdered milk facility