Anyone starting out may sometimes think they are in a Catch-22 situation. They can’t get a job without experience or they can’t get financing without demonstrating they can repay a loan. It can seem a bit unfair and like an unending cycle. But just as an internship or work experience of any kind can help lead to a job you want, sound financial habits can add up to your benefit over time.
Ben Cabaniss, commercial agriculture loan officer in the Lincolnton office of Carolina Farm Credit, shares some sound advice for establishing and protecting credit. Earlier in the year, Cabaniss was a speaker at the Big Ideas Conference, hosted by N.C. A&T State University. The conference is designed to provide inspiration and sound advice to young entrepreneurs and to help them implement their own business ideas.
Cabaniss spoke about the future of agribusiness finance and how young professionals can establish and maintain sound financial habits that will help them succeed and give them better access to capital for their businesses in the future. Here are some tips he shared for anyone wishing to establish and protect credit.
If you have a credit card, pay off the balance every month; otherwise, don’t make the purchase. Credit cards have exorbitant interest rates that can add up quickly.
“Cash is king,” says Cabaniss. “These steps will help you build a strong cash position, which gives you stronger bargaining power with some retailers, enables you to capitalize on opportunities quickly, and helps you maintain your business in difficult times.”
Cabaniss sites these books for more inspiration, sound advice and tools to help keep you on track.
Learn more in part 2 of “Establishing and Protecting Credit.” Also see “The Young Person’s Guide to Establishing Credit” in the August issue of The Leader.
To read more about Carolina Farm Credit, our members and the ag industry, check out issues of our Leader magazine—you can read them online.
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