NOVEL WEB Chapter 9: Chapter 9 You're Afraid I Won't Be Able to Repay on Time, Right
Chapter 9 You're Afraid I Won't Be Able to Repay on Time, Right
Yang Changdao was very familiar with this kind of mortgage business.
Although their finance company would certainly conduct further investigations later, he could already make a preliminary judgment about the authenticity.
Moreover, funds would only be released after thorough due diligence.
Given Lin Haoran's identity, there was no need for him to falsify anything.
Lin Wanan's reputation in the industry was excellent, which naturally reflected positively on Lin Haoran as well.
"Haoran, I've reviewed everything. Based on this cement factory and the land title as collateral, the maximum loan would be a little over ten million Hong Kong dollars. Considering your status as the young master of Wanan Group, I can personally approve a total of twenty million Hong Kong dollars. But if you're asking for fifty million, I simply can't do it," Yang Changdao said bluntly.
"Uncle Yang, twenty million Hong Kong dollars isn't my goal. If I were only seeking that much, there would be no need for me to come here. You know that with my kind of credit profile, I could easily secure that amount at Huifeng Bank, Standard Chartered Bank, or any of the newly established banks in Hong Kong.
Those banks would be more than happy to do business with someone like me. Yet, I didn't approach any of them. Instead, I came straight to you, Uncle Yang," Lin Haoran said, shaking his head.
His words might have sounded straightforward, but every point he made was absolutely true.
Compared to banks, Yumin Finance Company didn't have a significant advantage. Why should he choose to cooperate with them?
Banks, from one perspective, managed vast amounts of depositor funds.
If these funds remained idle and weren't lent out or invested effectively, the banks would face serious losses over time, as their capital failed to generate returns.
Moreover, banks had to pay interest to depositors to attract funds, which further increased their operational costs.
If banks failed to offer reasonable interest rates, depositors would have no incentive to keep their money there.
Thus, even for well-funded institutions like Malaysia's state-owned Yumin Bank, creating profit opportunities was vital.
Many customers chose Hong Kong Malay Yumin Finance Company because it could offer larger loan amounts than traditional banks.
If the borrower was a strong entrepreneur, Yang Changdao would naturally approve higher loans.
But Lin Haoran was very young, and he was not the actual controller of Wanan Group. Lending such a large sum to him carried substantial risks.
That was why Yang Changdao hesitated to approve a larger loan.
There were also people who, while seemingly eyeing interest payments, were secretly targeting the loan principal itself.
In his line of work, Yang Changdao had seen plenty of such cases and couldn't help but worry about encountering one now.
"Haoran, here's what I can do. As the general manager of Yumin Finance Company in Hong Kong, I'll approve thirty million Hong Kong dollars for you. Given your conditions, that's already the maximum I can authorize.
You should know that Yumin Finance Company isn't mine. I'm just a regional manager. Any loans I approve still need a second approval from higher-ups, who will also evaluate the risk. If it fails their assessment, no matter how much I promise, it's useless.
You understand, right?" Yang Changdao said after some thought, deciding to increase the approved amount by another ten million.
It wasn't that he didn't want to lend more—after all, the more he loaned out, the better his performance looked.
But he couldn't shoulder the risk alone. If the money wasn't recovered, the consequences would fall heavily on him.
"Uncle Yang, you're afraid that I won't be able to repay the loan when it's due, aren't you?" Lin Haoran asked with a smile.
Yang Changdao remained silent.
His expression made it obvious that Lin Haoran had hit the nail on the head.
If Lin Haoran's only goal was to acquire shares in Wharf Holdings, thirty million Hong Kong dollars would be enough.
In fact, too much capital would even be a disadvantage for stealthy stock acquisition.
But Lin Haoran wasn't just eyeing Wharf Holdings. He had another target as well.
Thus, if he could secure an additional twenty million Hong Kong dollars, he would have far more flexibility for his plans.
"Uncle Yang, my land and cement factory will be mortgaged to your company. That covers more than ten million without risk.
As for the remaining thirty-plus million Hong Kong dollars, your real worry is that I might take the money and run, right?
Let's not make things difficult. I'll be completely open.
I need this loan to acquire a listed company.
Currently, the company's market value is around one hundred million Hong Kong dollars, and it's a very high-quality firm—it has never reported a loss since going public.
I aim to become the major shareholder of this listed company.
As for the company's name, I can't reveal it for now, but once the acquisition is complete, I can pledge the shares as additional collateral to Yumin Finance Company.
That way, Uncle Yang will have even less risk to worry about.
Besides, I'm still the young master of the Lin family. Wanan Group isn't going anywhere. Even if I somehow couldn't repay the loan, you could still approach my father to recover the debt.
That would drastically lower your risk.
Additionally, once this loan is finalized, I'm willing to pay a fifty-thousand Hong Kong dollar 'tea fee' directly to you, Uncle Yang.
Given your status, persuading Yumin Bank's head office to approve the loan shouldn't be difficult.
Wouldn't you agree these conditions are hard to refuse?
In business, there is always some degree of risk.
But with my proposal, I've already minimized the risk to the lowest possible level.
Uncle Yang, your hesitation is only because I'm too young.
But youth isn't a crime. Even if I lose money on this investment, I won't lose everything.
At the time of repayment, the loss would be mine—not Yumin Finance Company's.
And with all the Lin family's businesses in Hong Kong, where would I even run?
If Uncle Yang agrees, then the deal is done.
If not, I'll just have to find another bank or finance company," Lin Haoran concluded, laying his cards on the table.
The listed company he referred to was, of course, not Wharf Holdings.
Wharf was a behemoth he couldn't hope to control yet.
Right now, Lin Haoran simply wanted to use the Wharf acquisition battle to earn himself a sizable amount of genuine seed capital.
With so many listed companies in Hong Kong, he naturally had his sights set on one.
Fifty thousand Hong Kong dollars as a "tea fee" was very generous—about 1% of the requested fifty-million-dollar loan.
At this time, standard annual interest rates in Hong Kong banks were around 5.00%–5.25%.
During this period of intense banking competition, some banks were even offering rates slightly lower than 5% to attract customers.
Of course, Lin Haoran didn't have the leverage to haggle over interest rates right now.
His top priority was securing the necessary funds as quickly as possible!
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