In the entertainment industry, everyone has been reborn, but who will be their servant?

Chapter 83 Internal Guarantee for External Loans
Cai Mei was stunned by her nephew's words.

Before she could process it, Qin Xuan shook his head, feeling it was inappropriate, and said, "Let's forget it, doing this would be a loss of public support."

If he does that, it's a bad thing to do. If word gets out, people will say that he's a ruthless person who deliberately lowers profits, which is really unpleasant.

The box office figures and production costs are fixed and cannot be faked.

“Actually, it’s feasible…” Cai Mei was still on her nephew’s side.

"No, you can earn money in any field, but once you lose your reputation, it's hard to gather people. I'm just worried that giving them too much might discourage them from working hard. After all, we're at a time of striving, and if anyone slacks off, it will affect the others, which will make things more difficult." Qin Xuan wasn't concerned about how much money to give them.

It's because they're afraid their team will become hedonistic.

After all, he still needs those people to maintain the stability of the team, but at most it's only a few hundred thousand, not a big deal.

"Oh," Cai Mei opened her mouth, somewhat dazed, not quite understanding that her nephew was talking about human nature.

I feel that my nephew thinks more deeply than people her age.

"Give them half first, and then give them the other half once the box office revenue from '12 Citizens' comes in. Make it clear to them that Wanda won't be making a one-time payment," Qin Xuan said.

Cai Mei nodded, indicating that she understood.

"Also, when you're dealing with Wanda, they offered me a 700 million yuan salary for 'The Unknown,' so keep that 700 million yuan for now." Qin Xuan planned to fleece Old Wang and get himself a million dollars first.

With this 7 million, we'll have 20 million. Since he's a sole proprietorship, this money can belong to the company.

"Huh?!" Cai Mei was dumbfounded. Her nephew was ruthless. "Isn't it too high?"

"Not high. I'm the director, producer, screenwriter, and executive producer. A million for each of those positions isn't unreasonable, is it? And let's not forget that I previously generated 90 million in box office revenue. That's an achievement, isn't it?" Qin Xuan shrugged, speaking as if it were a matter of course.

Cai Mei thought about it and it didn't seem unreasonable. She asked, "What if the budget isn't enough?"

"If the budget is not enough, just ask them to invest more. It's that simple. Just say that the film is halfway through and they have to give us the money even if they don't want to."

These words left Cai Mei speechless for a moment, unsure whether to call his nephew ruthless or kind-hearted.

They could have easily taken advantage of the investors, but instead chose to take advantage of Mr. Wang, who is in a position of power while the investors are in a position of weakness.

If Qin Xuan were to deduct a portion of their money, they really couldn't do anything to him.

Top directors these days earn over ten million yuan a film, like Zhang Yimou and Feng Xiaogang, but that's just a few. The rest earn a few hundred thousand, and Ning Hao earns a million.

They have IP value, which Qin Xuan doesn't yet, so opening so many isn't necessarily excessive.

After all, he was responsible for all the core creative work.

The main issue is that he also took 30% of the share, so it's a bit excessive for him to pay himself such a high salary.

Either take the money or take a share.

Feng Xiaogang only received 20 yuan in salary for filming "Assembly", but he earned tens of millions through profit sharing.

Cai Mei didn't have much to say, she just made a note of it.

"There's one more thing. I need to take out a loan. Could you help me with that? We have film and television copyrights and cash, so we should be able to get a loan." Qin Xuan was trying to generate cash flow from multiple sources.

We currently have relatively little cash on hand; all we can manage is three million US dollars.

“Xiao Xuan, what do you need so much cash for? We already have over 20 million, and the movie is all invested by Wanda, so we don’t need to spend any extra money.” Cai Mei was confused.

"I want to invest, specifically overseas," Qin Xuan said without hiding anything.

"Overseas investment?" Cai Mei didn't understand what her nephew wanted to do. "Yes, it's a financial crisis now, a good time to invest and buy at the bottom, so I need a large sum of cash." Qin Xuan didn't want to be too explicit.

"Can't you just focus on making movies? Why do you have to get into investing?" Cai Mei was completely bewildered.

Similar to Wu Guoqiang, he is also somewhat conservative.

"Please don't ask about that. Have you noticed that it's best to use US dollars?" Qin Xuan said.

"You want US dollars too?" Cai Mei asked in surprise.

"Overseas investment, of course, requires US dollars," Qin Xuan said with certainty.

Seeing that her nephew was determined, Cai Mei rubbed her forehead and thought for a moment before saying, "It's not impossible. We can provide an internal guarantee for an external loan."

"Internal guarantee for external loan?"

"Yes, it's New Force Guarantee. They register a subsidiary in Hong Kong or Singapore to take out loans. This is called internal guarantee for external lending." Cai Mei did have some professional knowledge.

Qin Xuan looked thoughtful, then asked, "How much do you think we can borrow?"

"It's hard to say. The financial crisis is severe right now, and overseas loans are tightening. If you want more money, you'll need to leverage it."

"What do you mean?" Qin Xuan asked his aunt.

"If you have three million US dollars and want to obtain an external loan, you have to deposit that three million US dollars in a domestic bank as collateral."

They will issue you a financing guarantee, which is the loan you need to obtain from overseas.

If they are willing to give you a five-fold increase in the amount, the overseas bank, upon seeing the letter of guarantee, will be willing to lend your subsidiary $1500 million.

However, this operation is only available to companies with very good credit. We definitely can't do it because we haven't been established for that long. Also, if we can't repay the loan, the leverage is too high, and our margin will be wiped out instantly.

Banks also bear significant risks, and regulatory intervention will damage their reputation.

Cai Mei explained to her nephew, reminding him, "So it's best not to do it that way. Just borrow the amount of money you have in equal installments."

Qin Xuan rested his chin on his hand and listened to the first part of what was said, but he barely listened to the rest, his mind completely focused on how to leverage the lever.

There's nothing I can do; the principal was too little.

"I understand, thank you, Auntie." Qin Xuan patted Cai Mei's arm.

His gaze swept across the empty office: "By the way, where's Uncle?"

“He went to the secondhand market to buy some office desks and chairs, and while he was there, he bought some paint to repaint this place. It’s too shabby; it doesn’t look good.” Cai Mei looked around.

The office space was shabby, with old marks on the cement floor, dust falling from the corners of the walls, and a few desks and chairs left by the previous tenant, the paint peeling off to reveal the wood underneath. There wasn't even a decent sofa.

"Don't bother. Wait for your uncle to come back. Have him prepare these next few days so he can come with me to Guizhou to film a movie." Qin Xuan didn't plan to work here for long anyway.

It's just a temporary base; once we make some money, we'll build a large building.

"What will he do? Still a lighting technician?" Cai Mei wanted her husband to change careers; how could he have a future doing that for the rest of his life?

"Manage logistics," Qin Xuan said.

Logistics involves food, drink, shelter, and transportation. As the film crew grows larger and more people join, this is where corruption is most likely to occur. My uncle is a reliable and trustworthy role model.

(End of this chapter)