Chapter 115 Application for a Huge Loan
Chapter 115 Application for a Huge Loan (asking for monthly tickets)
Wei Zetao didn't think much about it and said, "No problem."
Yang Wendong didn't say anything else, and the car fell silent.
In the short term, he doesn't actually need to cooperate with HSBC, Hang Seng is enough.
Although Hang Seng Bank may face the risk of a run in the future, it is still too early to happen. It will take several years after the run on Liu Chong Hing Bank. In addition, based on history, HSBC eventually saved Hang Seng Bank and acquired it, so there is basically no risk.
However, what Yang Wendong needs to consider is that in the future, if his factory business becomes stable, it will be unlikely that his funds will be kept in the bank earning interest.
Either you invest in real estate like Li Jiacheng, or do some other industries or even other industries. At this time, you need funds. After all, knowing the future, you must borrow other people's funds to develop in order to get the maximum benefit.
Among the banks in Hong Kong, the largest one is naturally HSBC, and it won’t do any harm to establish a relationship with it sooner rather than later.
And there is another point, borrowing a large amount of money from HSBC can be regarded as a talisman, and even loans from other banks are the same...
……
That afternoon, after returning to the company, Yang Wendong called Liao Liewen of Liao Chong Hing Bank.
The two agreed to meet tomorrow, but the location was not a bank, a company or a hotel or teahouse. Instead, they chose the site of the future Changxing Industrial's new factory.
What surprised Yang Wendong was that Liao Chuangxing only drove a Citroen, and it looked quite old.
Yang Wendong walked over and asked Liao Liewen who had just gotten out of the car, "Mr. Liao, why are you driving this car? It's a bit unworthy of your status."
"A car is just a tool, as long as it can be driven." Liao Chongxing smiled and said, "Because I often need to go to some remote areas in the New Territories and Kowloon, there is no need to drive a good car.
I just went to a hardware processing factory in the New Territories to discuss cooperation. I thought it would be too late to go home to change cars, so I came here directly. Mr. Yang, do you mind? ”
"Haha, Mr. Liao, you're joking. I couldn't even eat properly a year ago, so how could I care about such things?" Yang Wendong paused, and then said, "The car is actually a trivial matter, but Mr. Liao, since you have to go to places like the New Territories frequently, you still have to pay attention to your own safety. Drive a better car, and those gang members will generally be more cautious. There's no harm in that.
But it would be better if you were like me, at least have a bodyguard by your side, who can also drive your car for you, and be of some use if something happens. At worst, he can handle a small number of people, or tip off people, etc."
After saying that, Yang Wendong slightly moved his head to signal a burly man standing next to the car behind them!
Liao Liewen laughed and said, "Haha, Mr. Yang is still too cautious! Although Hong Kong is quite chaotic, those gang members generally won't offend entrepreneurs like us.
It’s not good for them either. There were some fools who tried to deal with wealthy Chinese people, and then they were severely cracked down by the Hong Kong government. Even the police department will not provoke us. Generally, they will not interfere with us unless we really violate the law seriously. "
Yang Wendong smiled faintly and said, "The Hong Kong government is really good."
Liao Liewen shook his head and said, "It's not that the Hong Kong government is good, but the Hong Kong government also needs money. Naturally, it needs normal companies to pay taxes or real estate companies to buy land. Can we expect the police to collect fees from street stalls?
One or a few companies may not be a big deal, but if a few of them have problems, everyone else will worry that they will encounter the same thing, so they will definitely work together to put pressure on the Hong Kong government. "
Yang Wendong nodded and said, "That's what I said, but we have to consider that if someone stupid enough comes out to cause trouble, we won't gain anything, right?
Not every gangster is a gang leader, some are working alone, they don’t have that much IQ! ”
In the 1970s and 1980s, many Hong Kong businessmen were too confident in their status in the business and political circles and did not bring bodyguards when traveling or exercising.
Then they were kidnapped, and some were even killed, because the people who did it were desperadoes, not gangs. Gangs have their own constraints and rules, while desperadoes don't. They just want to get the money and run away, and they don't think so far ahead.
Liao Liewen pondered for a moment, nodded and said, "Mr. Yang is right. I overlooked this point."
Yang Wendong smiled and said, "I am more concerned about safety issues, so I think about it a little more."
This is not just a matter of probability, but also a matter of there being no need to gamble. Besides, if you always have a few subordinates around you, even if there are no security issues, it would be more convenient to ask them to do something.
Or when you are outside, you can arrange for someone to come back. In this era, there are no mobile phones. If people want to contact others outside, they can only rely on the oldest and most traditional way: manpower.
Liao Liewen nodded and said, "Mr. Yang's reminder is very correct. I will also think about this matter when I return. I don't want to have a bodyguard around me, but it would be good to have two people who can help me."
Yang Wendong smiled, then pointed in a direction and said, "Then let's go over there. It's the site of my Changxing Industrial's future factory."
Liao Liewen followed the direction and looked at a piece of land not far away. It was covered with various weeds, several trees of Linxing, and many uneven stones. There were also five or six meter high mounds. Then he said, "Mr. Yang, it will also take a lot of money to level the land here, right?"
Yang Wendong nodded and said, "Yes, the ground here is not very good. Maybe it is because of this reason that although the location here is not bad, it has not been favored by other factories.
However, with such a large area, I plan to only use about 40% of it in the first phase, and leave the rest alone for now and we’ll talk about it later.”
Although a lot of land on the Kowloon Peninsula is not valuable, that is only compared to Hong Kong Island. It still has some value.
However, if the cost of development is higher than the final profit from real estate development, then it will become a wasteland, because no businessman will do this. It is better to invest more money in places suitable for development.
What Yang Wendong was interested in was naturally the large area of land here. Such a large area is not available in other places suitable for development. This is not only for the reason of "hoarding land", but also for the long-term development of the factory.
……
The two quickly arrived at the place, and when they got nearby they saw that someone had actually grown some vegetables here, but not many.
"This should be the people from nearby." Liao Liewen said.
Yang Wendong nodded and said, “There is a small village about 700 to 800 meters northeast of there. It is probably inhabited by people from that area.
I already knew the situation around here. The location is not bad, but there is a lack of roads. Otherwise, more people might live here.”
No matter how good the place is, it is useless without roads. Normal people with jobs will not consider this place.
Liao Liewen asked, "So Mr. Yang is planning to build a road here after the factory is built?"
Yang Wendong nodded and said, "It's just a small road. We just need to pave it with cement and connect it to the main road. The goods in our factory are not heavy, so it's convenient to send them out. We don't need any advanced roads, and it won't cost much."
There are too many disadvantages to not having containers. The high freight costs mean that many products can only be sold near the production site, and there is no way to sell them on a large scale. But there are also advantages. No matter how large the shipment volume of Changxing Industrial is, it is always sent to the dock in wooden boxes. Each box is not very heavy because it still needs to be carried on board by manpower.
There are even fewer requirements for the roads leaving the factory, and even the same applies to the purchase of raw materials. In this era, everyone transports goods in boxes that can be moved by several people. Forklifts are only available in some large factories, and are specifically used to carry large equipment or some large objects. Normal small factories do not have them. Pure manpower is the most practical.
Liao Liewen nodded and asked, "Have you bought this piece of land?"
Yang Wendong replied: "Not yet, now there are only some details and price issues left, and we still need to discuss with the Hong Kong government, but it's basically done.
Once the land is purchased, we will immediately apply for China Light and Power and the Hong Kong Water Works to provide water and electricity, and then we will immediately build the plant.”
Liao Liewen said with a smile: "It's really fast."
"We have to be quick, our customers are urging us to deliver the goods every day." Yang Wendong shrugged and said, "The factory will be built quickly, and then we can start mass production.
If we want to achieve this goal quickly, we still need a large amount of additional funds, so we hope that Liu Chong Hing Bank can help us with funds. "
Liao Liewen smiled and said, "Don't worry, Mr. Yang. Our Liao Chong Hing Bank has been supporting Hong Kong's manufacturing industry for many years. I wonder how much money you need? Has it been determined?"
Yang Wendong paused and said, "I hope to borrow 400 million Hong Kong dollars from your bank."
"400 million?" Although Liao Liewen was mentally prepared, such a large loan was still a huge sum of money even for Liao Chong Hing Bank, which is one of the top three Chinese banks today.
Yang Wendong confirmed, "Yes, 400 million. Because next, I need to build a very large factory at one time, plus various equipment, and because of the upcoming large-scale shipments, there will be a funding gap, so I need enough funds to prepare."
Liao Liewen nodded and said, "Mr. Yang, I have confidence in your factory, but we also need to follow the normal process, so I also need more specific information, planning, etc."
"Okay, of course." Yang Wendong also understood that although Liao Chongxing Bank was bold enough to use depositors' money to speculate in land, that was also the behavior of Liao Baoshan's Liao family. They were the boss and there were no restrictions.
When other people take out loans, there are still procedures to follow. For outsiders, no matter how bold and daring the bank is, there will be risk management measures.
Moreover, Liao Baoshan himself is also an elite figure in the business world. His vision on real estate is actually correct. After the bank's money entered the real estate industry, he operated the business normally and has been making profits. No one would be stupid enough not to control risks.
But it still suffered misfortune later, and it was not because of misjudgment. When people spread the news that there was a problem with the bank's funds, everyone ran a run on the bank. Even a bank that operated normally and had good risk control could not withstand the run.
Then, he continued, "That's right, in the future, our Changxing Industrial plan is..."
The two talked as they walked, and Yang Wendong also told Liao Liewen about the general plan for his company in the future. After all, he wanted to borrow money from others, and there was nothing to hide about some things that were not core secrets.
Future infrastructure, equipment, large-scale recruitment of personnel, daily factory operations, construction of a new glue factory, sending people to the United States for training, purchasing 3M patents, etc., all require funds;
If you don't have money, then many things have to be done step by step, which wastes a lot of time.
The current loan amount is actually a bit high, which means that money is exchanged for time. As long as everything goes well, the profits obtained after the subsequent large-scale shipments of your own products will be enough to slowly repay the previously borrowed funds.
Liao Liewen listened carefully to Yang Wendong's explanation, and slowly his expression became serious. After Yang Wendong finished speaking, he said, "Mr. Yang's plan is really grand. If it succeeds, I'm afraid he will become one of the richest people in Hong Kong in one or two years."
"It's not that exaggerated." Yang Wendong smiled and said, "The real rich people in Hong Kong are not the Chinese, but..."
His eyes looked towards the direction of Hong Kong Island, where the greatest wealth of Hong Kong was concentrated.
Although the real estate of this era is far from what it will be 20 years later, the Central area of Hong Kong Island is still far ahead;
At the same time, British capital controls all aspects of Hong Kong's wealth. Real estate is only a part of it. Electricity, transportation, infrastructure, docks, trade, shipping, and retail, all major sectors are controlled or even monopolized by British capital.
The factories that work harder are the mainstay of the Chinese population at present, but most of the profits are still controlled by British-owned trading companies, which control the external channels.
In addition, there were Chinese people engaged in shipping, such as Pao Yu-kang, Tung Chao-yen, and Zhao Cong-yen. Because the market was on the ocean, British capital did not have any special rights and everyone operated based on their own strength. However, there were very few such shipping kings.
Liao Liewen nodded and said, "That's true. Even if it's our bank, the money we earn in a year may not be even a fraction of what the Jardine Matheson Group's Wharf Terminal earns.
However, it should be no problem for you to become a wealthy Chinese."
"I hope so." Yang Wendong said modestly, "If I succeed, the bank that cooperates with me will surely gain considerable profits. Mr. Liao should also be very clear about this."
"Well, OK." Liao Liewen thought for a moment and said, "Even a big company like 3M is willing to advance $50 to Mr. Yang. I personally have great confidence in Mr. Yang.
However, such a large amount of funds cannot be decided by me alone. I need to go back and ask other people in the bank for instructions. "
"Of course." Yang Wendong also knew that this kind of loan could not be decided by someone other than the boss, not even the boss's son.
Liao Liewen asked again: "Mr. Yang, if you lend us money, can this land and the future industrial plant be used as collateral?"
"That's fine, if it helps with the loan." Yang Wendong naturally wouldn't mind a factory being mortgaged.
His core assets now are the several patents he has, especially the Post-it Notes. With these, even if all his wealth is gone, he still has a chance to make a comeback. Only this, he will not accept as collateral.
Liao Liewen smiled and said, "That's good. If there is collateral, even if the value is not as high as the loan amount, plus the future potential of your company, it will be easier for me to handle it."
"Thank you, Mr. Liao." Yang Wendong nodded and said.
If it were an ordinary bank executive, he would definitely have to give some benefits if he cooperated with him like this.
But he is the son of the bank boss, so I can only do my job impartially.
Inside Liu Chong Hing Bank:
Liao Baoshan looked at the document in front of him, then glanced at his son and said, "A loan of 400 million. This kid surnamed Yang is really ambitious. The scale of his factory is much larger than Li Jiacheng's new factory."
(End of this chapter)