12dz Chapter 560: A preliminary agreement has been reached.
Chapter 560: A preliminary agreement has been reached.
After Liu Jianjun repeatedly warned him not to act recklessly, Li Xiangyang did not go directly back to the factory after returning from the county, but went to the teahouse in the town first.
This teahouse has been open for over ten years. The owner is a woman in her forties who is very well-informed.
"Mr. Li, what brings you to my humble abode today?" the proprietress greeted him warmly. "I've heard your business is booming."
"Sister Wang, you flatter me." Li Xiangyang sat down in a corner and ordered a pot of tea. "I'd like to ask you something."
Sister Wang's eyes lit up, and she lowered her voice: "What is it? I'll tell you anything I know."
"Do you know any people around here who do private lending?" Li Xiangyang asked in a low voice, picking up his teacup.
"Oh, you're asking about that?" Sister Wang looked around to make sure no one was watching, then leaned closer. "I do know a few private lending companies, but the interest rates aren't low—3% a month. That's already the lowest; they're all about the same. What, you need a loan? I can help you get in touch."
Li Xiangyang asked a few more questions and basically figured out the details of each company.
"Sister Wang, when do these loan shark bosses usually close in?"
"Of course, it's only when you see a risk," Sister Wang said, her experience evident. "They're all old foxes. Once they realize the borrower can't repay, they'll immediately demand collateral. So, if you can go to a bank, you'd better go to a bank. Although I'm tempted by the referral fee, I have no reason to push you into a fire pit."
After thanking Sister Wang, Li Xiangyang went to several places in town to inquire and gained a better understanding of private lending.
Back at the factory, Ma Qingfu and Wang Ergou were discussing the production plan.
"Xiangyang is back? What did the county say?" Ma Qingfu asked with concern.
"The county's stance is very clear: they support fair competition," Li Xiangyang said, sitting down in a chair. "However, I feel that county support alone isn't enough."
Wang Ergou put down the ledger in his hand: "So what do you plan to do?"
Li Xiangyang pondered for a moment, then slowly said, "I plan to contact private lending companies. If Jinyuan really did use private lending, the monthly interest rate will be at least 3%."
"Three percent?" Ma Qingfu gasped. "That means 36 percent interest alone in a year. How much profit would it take to sustain that?"
"They're so eager to crush us because they can't hold on any longer," Li Xiangyang analyzed. "But if we don't collapse, and instead cause problems with their cash flow, what will the lenders do?"
Wang Ergou's eyes lit up: "You mean...we're going to find those loan sharks?"
“Not bad.” Li Xiangyang nodded.
Ma Qingfu was somewhat worried: "Won't there be any risks in doing this? What if..."
"What risks?" Li Xiangyang countered. "We're not going to borrow money, we're going to discuss cooperation. What are lenders most afraid of? Not being able to get their money back. If Jinyuan Industry really can't hold on, we can help them take over their factory and equipment as collateral."
Wang Ergou slapped the table: "Great idea!"
Over the next few days, Li Xiangyang began to secretly investigate the debt situation of Jinyuan Industrial.
Through various channels, he learned that Jinyuan Industrial had borrowed money from at least three lending institutions in the provincial capital, totaling more than one million yuan, and all of them used factory buildings and equipment as collateral.
More importantly, according to the contract, if Jinyuan Industrial fails to pay interest on time for two consecutive months, the lender has the right to dispose of the collateral.
“This is the breakthrough,” Li Xiangyang said to Ma Qingfu and Wang Ergou in his office. “Given the current market situation, Jinyuan Industry’s cash flow is definitely tight. We only need to apply a little pressure to break their cash flow.”
Ma Qingfu nodded: "You mean continue to raise the acquisition price?"
"It's not just about raising prices; we also need to expand the scope of our procurement." Li Xiangyang pointed to several points on the map. "These counties have good mountain produce resources; we can send people there to establish procurement points."
Wang Ergou was puzzled: "But this will increase our costs."
"It will increase in the short term, but it's worthwhile in the long run," Li Xiangyang explained. "First, expanding our acquisition scope will increase our raw material supply and ensure stable production. Second, this will further squeeze Jinyuan Industry's survival space."
"What's the most crucial thing?" Ma Qingfu asked thoughtfully.
“The most crucial factor is timing.” A glint of shrewdness flashed in Li Xiangyang’s eyes. “From what I understand, Jinyuan Industrial’s interest payment period is next month. If their revenue this month isn’t enough, then things will get interesting.”
That evening, Li Xiangyang drove alone to the provincial capital. He was going to meet with those loan shark bosses to see if he could make arrangements in advance.
The provincial capital was bustling with nightlife, neon lights flashing incessantly. Li Xiangyang arrived at a hotel called "Juxianlou," a place Lao Kang frequented.
Through Sister Wang's introduction at the teahouse, Li Xiangyang soon met Lao Kang. He was a man in his fifties, well-dressed, and looked like a successful businessman.
"Is this Mr. Li? Sister Wang said you wanted to see me." Old Kang shook hands politely. "I wonder if there are any cooperation opportunities?"
Li Xiangyang cut to the chase: "Mr. Kang, I'd like to know, how do you usually handle collateral if someone is unable to repay on time?"
Old Kang's eyes flashed: "What difficulties has Mr. Li encountered? Does he need funds to tide him over?"
“It’s not that I’m in trouble, but rather that I’ve got my eye on some collateral,” Li Xiangyang said with a faint smile. “If the price is right, I can help you get rid of some hot potatoes.”
Old Kang became interested: "Oh? What industry does Mr. Li work in?"
"Our agricultural product processing business is fairly well-known in the county," Li Xiangyang said, handing over his business card. "My idea is that rather than letting the collateral rot in our hands, it's better to find someone who knows its value to take it over; everyone will benefit."
Old Kang carefully examined the business card, then sized up Li Xiangyang, and finally nodded: "Mr. Li is right. But the specific cooperation methods..."
"It's very simple. If you have any businesses that can't repay their loans and need to dispose of collateral, you can consider me first," Li Xiangyang said calmly. "The price is fair, the procedures are simple, and you definitely won't lose money."
The two talked for over an hour and reached a preliminary agreement. Lao Kang said that if such a situation were to occur, he would contact Li Xiangyang first.
After leaving Juxianlou, Li Xiangyang met with two other loan sharks. Although no agreements were signed on the spot, both expressed their willingness to cooperate.
On the way back, Lao Kang's promise to "sell it when the price is right" kept echoing in his mind, like a settled chess piece, finally putting his heart, which had been hanging in suspense for half a month, at ease a little.