JDF
For 100 points- One of our off book third party finance companies we work with is a major manufacturer of green equipment.
What is John Deere Financial or JDF
For 100 points - Funding our JDF financing programs are done each month. As we have different interest programs and dates to fund.
Explain the JDF funding principals.
> What is funding JDF programs if they are 0% to the farmer...FUND THEM RIGHT AFTER INVOICING
> If the JDF program has an interest rate then fund them on the A/R due date, or the 10th of each month.
For 100 Points--Three components of a Balance Sheet
What is Assets,liabilities and Net Worth?
For 100 points-You borrow money from our company today at an Annual Percentage Rate as a Cost of Capital.
What is 9% APR.
For 100 points-Every day starts with this saying.
What is Every Day is a Prepay Day!
For 200 Points:
The concept of knowing Envy Sixx Match and JDF Program 62401
What is knowing your products?
* We should know our JDF programs what we use as well as we know our Innvicitis products
* 62401 is our JDF program at a rate of Prime + 6.35% to the customer at no cost to us Due In Full December 2019.
For 200 points: Safety is a high initiative for the company. CREDIT SAFETY is also very important and the financial impact is significant. Name up to two ways where we demonstrate Credit Safety.
What is having an annual crop and business planning session with the farmer discussing our A/R terms and possible third party finance options
Contacting the customer when they are past due within 10 days of the due date.
Contacting the customer when they are assessed a finance charge at the first of each month if they have invoices unpaid from the prior month(s) and again explaining the options of Third Party Finance
200 points - Name the four categories of an Income Statement?
What is Sales, Gross Profit, Expenses, Net Profit!
For 200 points- A place where at least three sources of financing for farmers comes from.
What is Bank/Lender, JDF, FarmLine ET, Tru-Choice, Bank of Pinnacle, and ....
200 points- Benefit(s) of having Sales and Operational Team meetings the first Friday of each month.
What is getting ahead of your Accounts Receivables before they are due on the 10th of each month.
Making sure the financing programs are funded for the customer by or before the A/R due date.
For 300 Points:
Creating a transaction to advance prepay from a customers JDF account to be placed on our Customers A/R account.
What is a GP booking?
For 300 points: Two Parts
APR charged has financial impact
FEE charged also has a financial impact
What is APR in the context of Annual Percentage Rate of interest charged for the amount borrowed (Interest Charged to the Farmer by JDF) vs...
FEE charged means the one time cost at the time the transaction occurs (JDF cost of the program to Pinnacle)
For 300 Points - Explain Cash Flow
What is the money that is moving (flowing) in and out of your business in a month. Although it does seem sometimes that cash flow only goes one way - out of the business - it does flow both ways. Cash is coming in from customers or clients who are buying your products or services.
A created non selling environment where a sales team and sales manager gets together with a farmer to discuss opportunities
What is a business review, planning session, and/ farmer sitdown.
For 300 Points- The extension of A/R terms for a period of 9 months cost your location and you interest.
What is 6.75% in margin cost. (9%/12 x 9 mo)
For 400 points...Net Gross Profit Calculation
Our average operating expenses are 15%, your gross profit is 20%, and you use a JDF program that your fee is 7%..
What is a loss of Gross Profit of (2%)?
For 400 Points:
The total amount of money being transferred into and out of a business
What is cash flow?
For 400 Points- The financial measurement of our company is important to our financial well being.
Additional Question for an additional 400 points - Pinnacle has a company goal for this measurement.
What is EBITDA...Earning Before Interest, Taxes,Depreciation, and Amortization.
What is 10% EBITDA.
The appropriate time to deal with monetary and/or business issues and business issues with a farmer, staff, member, or family member.
What is as soon as possible.
For 400 points
Principally we have A/R due dates at the 10th of each month. All customers should be contacted when they are past due.
What is the 20th of each month
For 500 points:
JDF financing program used to provide sales opportunities to use at the end of the year without funding any of the money until the farmers JDF account has available money.
What is JDF Bridge Financing?
For 500 Points:
Where we move our A/R - accounts receivables to an outside financing source(s).
What is Off Book Financing?
For 500 points - Businesses owned and operated by one individual.
and
Businesses owned and operated by more than one person or company.
What is sole proprietorship?
What is a Corporation, LLC, Partnership or Cooperative?
ASK ANOTHER!
You have the opportunity to ask another team a question related to credit and financing. Answer judged by Debbie, William, and Randy. If the answer by the other team is incorrect then the asking team wins 500 points. If the answering team is correct then they win the 500 points!!!
What is ....
For 500 Points- What if you had to write off to profit and loss $200,000 of your Accounts Receivables (A/R) with your business being at a net profit of 4%. The sales to make up the $200,000 loss is...
What is $5,000,000 of new sales to make up the $200,000 loss.