By Dave Millhouser

The 1947 Aerocoach was wending its way slowly across the Great Plains, and we were bored out of our skulls.

The closest thing we had to an entertainment system was a contest we had developed that involved the ubiquitous grain silos and elevators that dot the landscape across Americas breadbasket.

As soon as someone spotted one in the distance, wed take bets on how far away it was. Sometimes the odometer clicked off an excruciating 30 miles between the initial sighting and the moment we passed it.

Sometimes the stupid silo was on a parallel road, and we never got there.

Many coach operators are having a similar experience as they try to get financing for equipment. It seems to take forever to close on a loan. You just keep going and going but it just hangs out there on the horizon. Sometimes you never get there.

Its frustrating because our government and the media keep telling us the credit market has improved, and that banks are flush with cash. Theyre telling the truth but, of course, it isnt the WHOLE truth.

A number of seemingly unrelated forces appear to be conspiring against us.

Lenders have taken a political, fiscal and regulatory pounding on sub-prime loans and, as a result, are being very careful about who they lend to.

Banks have money to lend (at historically low rates), but only to folks who can prove they dont need it.

Politicians, from the president on down, are encouraging them to lend, but at the same time they are roundly criticizing banks for the questionable loans of the past. New regulations and taxes for financial institutions also are high on the politicians agenda.

Is it any wonder banks and other financial institutions are cautious and less than eager to rush loans out the door?

Youve probably also noticed that used coach values have taken a beating (and used equipment is hard to sell).

Historically, finance companies could depend on high residual values, and a liquid market when a loan went south. They cant do that in this environment, so theyve changed the rules.

In better times they could take a chance on a weak credit because it was easy to resell the bus if things went bad.

Today, cash flow, a strong P&L, good documentation, and substantial underlying value are critical to getting coaches financed. There is money out there, but only for "qualified credits."

Companies that cant meet the new standards are doomed to being denied credit, or paying nasty interest rates.

Many fine companies have invested creative energy in avoiding the appearance of too much success. Heck, if they make money, they have to pay taxes, so they do all sorts of things to hide profits. Some of these things are even legal.

The trouble with this approach is that it doesnt fit the current situation. The taxes avoided may be far less than the extra interest paid, or opportunities lost because they couldnt buy equipment. You have to look as good as you are.

It may be time to change the way you think. If you dont already have one, now might be a good time to hire a good accountant, and have them prepare a first-rate financial package.

In order to be a "quality" credit youre going to need certified or reviewed financials, and only a REAL accountant can provide them. Many operators have largely depended on tax returns when applying for loans, but a complete financial package tells the lender far more of what it wants to know.

It used to be enough that you paid consistently, but now the finance company will be looking for underlying cash flow indicators that demonstrate HOW youll pay THIS loan.

There are some extremely low interest rates out there, but only if you can convince the lender you are "worthy." A top-flight accountant can present your company in the most favorable light, and help sell you to the lender. If there are hiccups, the accountant can tell your story in the most favorable way.

It has been the norm in our industry that owners sign personally on loans. Financial institutions are giving personal statements more scrutiny because they understand its possible to shift liabilities around. Its worth considering having the accountant prepare them, too.

Another advantage of having a financial pro is their familiarity with the myriad of financial products out there. They can help pick the right kind of financing, and the right time of the year to borrow. (Yup . . . it can matter.)

They can help with planning for growth and the best ways of dealing with the current market, while giving you some idea of how your business compares with others they serve.

Quality financial planning and the ability to present your company in a favorable light is critical right now. If you havent done so already consider biting the bullet and paying for solid advice, first-rate financial documentation and accounting, rather than reading a column by a guy who, just weeks ago, told you about hunting grizzly bears with a club.

Dave Millhouser is a bus industry marketing consultant and freelance writer. Contact him at: dave_millhouser@hotmail.com.