Return to 1958 and build a century-old giant

Chapter 95 Loan Success and New Factory Establishment

Yang Wendong didn't even think about it and directly denied it, saying, "Ms. Ning, I won't mortgage the patent for the sticky notes, there's no point in talking about that.

If your bank is really worried about the risk, we can make some concessions on the loan amount or interest rate. "

The number 100 million may not mean much in the 21st century, but it was indeed an astronomical figure in Hong Kong in the 50s. To give the simplest example, in a few years, Macau will open casino licenses, and the gambling king, the Ho family, eventually won the bid for the license and spent almost 300 million Hong Kong dollars.

Even for Liao Chong Hing Bank, which has looser risk control, it is not completely without a control mechanism. It is normal to have some requirements for such a large loan. In fact, Yang Wendong's original intention was not to necessarily need a million. He just reported a larger amount for the sake of subsequent negotiations.

But if it involves the patent for mortgaged Post-it Notes, that is absolutely impossible, because at present, there are quite a few people who are jealous of this patent. 3M is definitely willing to buy it at a high price now, and so are some other people with vision. During this period, several people called from overseas, just to test whether they are willing to sell the patent.

If the patent is mortgaged, at a time when funds are tight, if someone trips me up and causes production or quality problems, that would be a disaster.
Yang Wendong also absolutely believes that in any era, there will always be people who do such things for profit. Although he may not encounter it, as long as there is such a possibility, he must avoid it.

Ning Wenjue frowned when he heard such a tough reply and said, "Mr. Yang, everything is negotiable. If you don't want to mortgage all the patents, you can also mortgage the patents of some regional markets."

Yang Wendong said with a smile: "Ms. Ning, patents are the bottom line of our company. Since you agree that this patent can be used as collateral, it means that you also recognize the value of the patent.

As long as there is this value, as long as the product is manufactured through normal production, it will inevitably generate profits. "

Wei Zetao also said: "Yes, Miss Ning, you have been working in the banking industry for more than ten years. You have been providing loans to Hong Kong's manufacturing factories over the years. Your understanding of the manufacturing industry is not worse than those of us in the manufacturing industry.

Changxing Industrial now has only two products. One is the mouse trap which had good sales performance last year, but because it is a seasonal product, there is no market for it in winter.
But as long as spring comes, and we have developed more dealers during this period, the sales of mouse sticky boards alone can be increased by more than ten times.

Not to mention Post-it notes. I think anyone who has used it will not refuse to use it again, and there will be millions or even tens of millions of people around the world who will be its customers.

If Liu Chong Hing Bank thinks that the loan risk is too great, then we can only look for other banks to cooperate with. I think that with so many banks in Hong Kong, there will always be some that are optimistic about our Changxing Industrial. "

Yang Wendong also immediately expressed his opinion, saying: "I agree."

In fact, they also gave their information to other banks and submitted applications. It was just submitting some information anyway. When banks choose customers, customers will of course choose banks.

An unsecured loan application of one million Hong Kong dollars is indeed a large amount, and smaller banks in Hong Kong may not be able to come up with such a large amount of funds. However, after seeing 3M's research data on the US Post-it Notes market and their own experience, these banks still extended an invitation and said they could sit down and talk.

No matter what the outcome of today's visit to Liao Chong Hing Bank is, the two of them will still go to a few other banks. There is no harm anyway.

When Ning Wenjue heard the two's statements, he quickly said, "Don't worry, I am also controlling risks from the perspective of the bank. If you were in my position, you might do the same.

So, since both of you have said that you are unwilling to directly use the patent of the sticky note as collateral, then if Mr. Yang is willing to use his personal name as a guarantee, then this loan will enter the internal approval process. "

"Just need my signature?" Yang Wendong asked with a smile.

Ning Wenjue said: "Yes, although I am very confident in the two products of Changxing Industrial, the bank's process requires risk management.

Although Mr. Yang is just an ordinary person now, I have collected relevant information about your entrepreneurial process in the past year. I believe that people like you will not ignore your own responsibilities. "

"Okay, I'll sign the guarantee." Yang Wendong nodded and said.

A loan of such a huge amount as one million Hong Kong dollars, like hundreds of millions of RMB in the previous life, is indeed difficult to issue without sufficient collateral, and it is the same in any bank.

The prospects for Post-it Notes are indeed very good, and from a basic business analysis perspective, it is impossible for them to lose money, but banks still have to play it safe.

Ning Wenjue smiled and said, "That's good, Mr. Yang, Mr. Wei, for a loan of one million Hong Kong dollars without direct mortgage of real estate, my authority is limited and needs to be reported to the boss.

In the future, our bank will also send people to your company to conduct relevant investigations, so please make relevant preparations. "

"No problem." Wei Zetao replied.

This is one of the main reasons why the company hired these professionals. At this moment, the most important task for Changxing Industry is to get the loan as soon as possible and then increase production capacity.

Yang Wendong asked again: "How long will it take? I don't want to wait too long. It is in the interests of all of us, including your bank, to increase the production capacity of my factory as soon as possible."

Ning Wenjue replied: "Don't worry, Mr. Yang, I will complete this process as quickly as possible."

"Well, okay." Yang Wendong nodded.

Afterwards, the three of them praised each other for some business.

Wei Zetao also implicitly stated that if the loan was successful and the interest rate was lower, Ning Wenjue would also get a considerable return.

Yang Wendong had no objection to this. In any society, one has to be willing to spend this kind of money. Even if he might have other banks to choose from, he would still have to spend this money if he went to other banks.

In the current market environment, banks are still relatively strong, unless the real estate market goes through two more bull markets, then some small banks may seek help from large real estate companies.

As for manufacturing factories, they will not be treated this way unless they develop into giants. In the past, there were only a handful of giants in Hong Kong, and they were far inferior to real estate giants...

……

After leaving Liu Chong Hing Bank, Yang Wendong said: "I hope to be able to cooperate with Liu Chong Hing, but I also need to communicate with other companies. Maybe there will be better conditions."

After listening to this, Wei Zetao also said: "Yes, I have also contacted several other banks. Let's visit them together in the next few days to test their attitudes and the amount they can lend."

"Well, if the loan is approved, where will the new factory be located?" Yang Wendong asked again.

Wei Zetao said: "Zhou Sheng, in addition to keeping an eye on the equipment production progress at Dongsheng, will also check for some suitable factories that can be rented.

However, the industry in Tsim Sha Tsui is not well developed. If you want to rent a good location, it is more appropriate to go to Hong Kong Island.”

"Hong Kong Island is too expensive, so I won't consider it for now. Let's look for it nearby." Yang Wendong said after thinking for a while.

Hong Kong's industry has developed rapidly in recent years, and industrial land has been unable to keep up with the development, which has led to a continuous increase in industrial real estate and rental prices.

Especially in Hong Kong Island, the prices of normal commercial and residential properties there have also risen sharply. Although there is no direct relationship, the overall increase in land prices still makes the price of industrial land rise more sharply.

Relatively speaking, the prices on the Kowloon Peninsula are much lower.

Wei Zetao nodded and said, "Okay, I will tell Mr. Zhou your decision.

In fact, Mr. Zhou has also considered this aspect. He has an idea that we can just rent a warehouse and make some minor changes to turn it into a factory. "

"Will the government approve this?" Yang Wendong asked.

Wei Zetao replied: "No problem, many factories are doing this now, but it is only suitable for small factories that do not have a large demand for electricity and do not have much pollution, such as assembly plants;

Textiles, injection molding, and mechanical processing are not very good. Although our sticky notes are also made by equipment, they consume little electricity and do not produce much emissions, so there is no problem. "

"Well, that's fine. The warehouse is large enough." Yang Wendong nodded.

Although the warehouse business in Hong Kong is good, it is only good for the entire group. Among the hundreds of warehouses, there are always many that are not doing well and then go bankrupt, or some have vacant warehouses due to their expansion.

The fundamental reason is that warehouses were the most profitable for a period of time before, and then a large amount of capital poured in, which eventually led to a situation similar to "overcapacity"...

Wei Zetao smiled and said, "In fact, it is because our factory does not need to rely on the relevant industrial chain. Otherwise, many plastic and textile factories will definitely lose money if they go to a far place alone." Yang Wendong nodded and said with a smile, "That's right, but the lack of an industrial chain also leads to higher costs for us. Fortunately, we have patents and a certain pricing power, otherwise it will be even worse..."

In the past, there were industrial parks in many places in the country, where people made the same things. Then, many companies would work together to attract suppliers and supporting industries, and everyone would work together to reduce costs.

In fact, there has been a similar situation in Hong Kong's industrial development over the years. Even if the Hong Kong government still strictly implements its own policy of non-interference, the market itself will gradually form such a rule. After all, latecomers are not stupid, and they will also find ways to utilize the industrial chains built by their predecessors.

Therefore, traditional industries such as hardware, plastics, toys, and textiles have a tendency to cluster together, and in the past few years they have naturally gathered near Hong Kong Island. Even skilled workers are there, and they themselves are an important resource.

There are some industries on the Kowloon Peninsula, but most of them are self-built small enterprises, such as the former Hongxing Plastic Factory, which rely on low rent or even no rent to do small business.

Wei Zetao thought for a moment and said, "In the future, we will also have to use cardboard for mouse traps. Paper and glue will be our biggest material costs in the future, but these two things are difficult to produce in Hong Kong."

"Let's talk about it later. When we have funds in the future, maybe it will be possible." Yang Wendong smiled.

Although the goal is still far away, we can set it now. It doesn’t matter if we can’t achieve it.

It is just a bit difficult, especially with the water shortage in Hong Kong.

……

In the following week, everyone in Changxing Industrial Company was doing their own tasks.

Zhao Liming is still in charge of production for the time being because the new production supervisor Zhou Xianglong needs to go out and check out the new factory.

On the financial side, Su Yiyi also cooperated with Sister Wang to conduct various checks on the accounts, including the warehouse, and prepared relevant materials in order to cope with the upcoming bank review.

Yang Wendong and Wei Zetao, the two most important figures, continued to visit several banks and communicate and negotiate with them.

Like Liu Chongxing, these banks were optimistic about the market potential of Post-it Notes, but the lack of a mortgaged real estate for a million-Hong Kong dollar loan did make them hesitant.

Although time was very urgent, Yang Wendong could not show it and could only deal with and receive calls from various banks together with Lao Wei.

However, although it has not been finalized yet, several people within Changxing know that it is just a matter of time and amount.

Because during this period, 3M sent another check, plus an urgent reminder letter, which also made several banks more confident...

During this period, in addition to bank loans, there is also the issue of factory site selection.

On January 1, Yang Wendong, Wei Zetao and Zhou Xianlong took three rickshaws to a warehouse on the north side of Tsim Sha Tsui.

"What is this boss thinking? Building a warehouse here will be seven or eight miles away from the seaside, right?" Yang Wendong said with a smile to the two people beside him after getting off the rickshaw.

Zhou Xianlong replied, "Mr. Yang, this is not the boss's fault. A few years ago, the Hong Kong government planned to build a road here to connect to the seaside, so several warehouse owners came here to invest, and they were all Chinese.

Later, for some unknown reason, the road was not built, and some of the goods in these warehouses were relatively heavy, so it was not suitable to build them here, and then they were abandoned. "

"Road?" Yang Wendong looked down at his feet and asked, "Will it affect us?"

Zhou Xianlong said: "It has no impact. In fact, there is a road, but the quality of the road cannot meet the travel requirements of trucks when shipping goods from the warehouse.

Our products are all light goods, so ordinary roads are enough.”

"Yeah, that's true, but we still need to confirm it." Yang Wendong nodded, and then the three of them walked towards the warehouse together.

There were no containers in this era, so small commodities were transported in wooden boxes, sent to the port, and moved into the ship by workers, so the requirements for the road surface were not high.

During this period, 3M is expanding its market, so many of the Post-it Notes are shipped by air. However, when the quantity increases in the future, they will naturally be shipped by sea. Otherwise, the value of the Post-it Notes will not be enough to cover the air freight.

……

The three of them came to the warehouse, where two Chinese people, a man and a woman, were already there to receive them.

The five of them walked around the warehouse together.

Yang Wendong asked: "How big is this area?"

The warehouse woman replied, "2.4 feet in total, about 40 meters by 60 meters."

"Well, that's possible." Yang Wendong thought to himself.

He and Wei Zetao had also discussed that the demand for sticky notes in the future would definitely be terrifying, and it was impossible to predict it now.

But what is certain is that a 2.4-square-foot factory is definitely not enough. However, it can be used in the short term. If this place is still not enough in the future, then we can find another place or even several places and produce together in several factories.

After all, it is impossible for them to rent an entire huge industrial office building or large warehouse at one time. Not to mention whether there are any, even if there are, they cannot afford to rent them.

Capacity expansion, even at a fast pace, must be done step by step, and skilled workers are the most difficult to keep up with the pace of expansion.

Zhou Xianlong said: "Mr. Yang, the power facilities, tap water, and sewage pipes here are all very complete. Before our equipment enters the site, we will ask an electrician to come and sort out the lines, and then we can use it directly."

"Well, it's not bad." Yang Wendong nodded and asked, "What about the kitchen?"

Zhou Xianlong said: "We can build one outside. There is still a little space outside this warehouse. It is integrated."

"That's good." Yang Wendong nodded and said, "Then, you draw the future layout diagram and use this space to arrange everything reasonably and try to accommodate as many devices as possible."

"Okay, I can finish it tomorrow." Zhou Xianlong promised.

"As for the price, you should negotiate with them first. The lease period should not be less than 5 years." Yang Wendong added.

After you rent the place, you will need to make certain investments and changes to it. Five years is the minimum. Otherwise, the time is too short. Losing money is a small matter, but moving again and affecting production is a big deal.

Even if we rent other factory buildings or build our own factory buildings in the future, this one will still be used.

Zhou Xianlong said, "Okay, I will discuss the lease issue with Mr. Wei."

"Yeah, okay." Yang Wendong nodded.

……

Time quickly arrived and it was January 1nd again.

The final decision came from Liu Chong Hing Bank, and they agreed to lend 80 Hong Kong dollars, which was much more than the other banks.

After reviewing the terms with his lawyer, Yang Wendong finally modified some minor conditions, and the two parties finally reached a deal.

With the money, the warehouse was naturally taken over smoothly, and the second factory of Changxing Industrial was established.

(End of this chapter)