a Justin Kay snip... 
Unlike most business ventures, banks aren't often enthusiastic about
lending money for beekeeping start ups.

my comments...
what follows may have little to do with bees so if the moderator wishes to central file this message that is totally understandable by me....

Long long ago after completing an undergraduate degree (cum laude) and a tour in the US Navy (Vietnam era but no one shot at me) I began my working career as a commercial agricultural banker. Basically loaning money (typical loan was about $2million dollars which in the early 1970 was considered real money) to large agricultural producers or marketing firms.

In loaning money you consider a number of qualities including the purpose of the loan, collateral and the experience and character of the person or firm wanting to borrow the money. Each of these qualities is important but character (or the lack there of which is commonly tagged in finance as moral risk) are primary consideration. Of course purpose is where the process begin and basically purchasing assets to increase efficiency or output or profits is acceptable.  At least for the firm I worked for loaning money to finance a high life style or bling was consider as a sure sign the firm would soon be illiquid and then shortly after this bankrupt. We loaned a lot of money simply to keep firms liquid in the form of operational funds (ie financing yearly operating funds) < to some degree this tendency to PLAN financially for future events said something about the basic experience of the firms operator.... waiting to the last moment and then coming into our office in a panic said something quite different.

Experience and a positive record to pay past loans are also critically important...so from the get go start up firms are short both in terms of past experience and credit capacity.  Collateral is also somewhat important to banks and since the value of this collateral is totally dependent on the owner the potential value of bees and beehives is effectively zero <collateral value also includes the time required to sell the collateral.. Add to this (if you reference the commercial facebook page you may notice this quickly) the young seem predisposed to buy fancy new truck and less concerned with assets that increase efficiency or firm profits.

Effective borrowing can increased firm growth via financial leverage and the experience does build (over time) credit capacity.  Currently interest rates are at historically low rates and imho any young start up operation that does not borrow at least a little money at this time is making a large mistake.  Anyone that make a claim that they built a modern day firm (of whatever kind) and did this totally without borrowing were either born rich or borrowed heavily from friends and relative.

Gene in Central Texas

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