Song Tianyao lowered his head and lit a cigarette. "Since you're willing to supply me, I can ask my friend at HSBC to inquire about it for you. However, how much are you planning to borrow? You know HSBC is known for its abusive practices; they won't bother with small amounts."
Xia Zuoji's intended business was clothing manufacturing. He had conducted thorough research in Hong Kong and found that besides department stores selling clothes, the only other businesses were various tailor shops. Even suits needed to be made to order, and the prices were outrageously high. Many people who didn't have much money but still wanted to wear Western-style suits were scared away by the custom-made prices. If he opened a clothing factory, selected a few popular styles, had the factory produce them, and then sold them in a shop, it would definitely be much cheaper than ordering individual suits from a Western-style clothing store. Moreover, when he returned to India, he specifically traveled to Thailand, Myanmar, and Vietnam, where the clothing industry was not well-developed. If his clothing business did well, he could produce the clothes in Hong Kong and then sell them there.
He had calculated that setting up a moderately sized factory would require purchasing sewing machines and other equipment from the Britain or the United States, plus factory space, utilities, labor, and even fabrics. If he also wanted to open his own clothing store and handle sales himself, he would need at least HK$500,000 in cash upfront. Currently, he had earned around HK$100,000 from his hair business, and after deducting expenses, he had Hong Kong dollars 70,000 in the bank. If the demand for raw materials for his wig factory increased and prices rose slightly, he could earn HK$400,000 in just one or two years. This was why he felt confident enough to go to the bank to seek a loan.
At this moment, because of his loyalty, Song Tianyao had given him a batch of raw materials first and wanted to ask for help. Xia Zuoji considered it for a moment and said to Song Tianyao, "500,000 Hong Kong dollars, I want to borrow 500,000 Hong Kong dollars."
"That's too little. No wonder you can't borrow money from foreign banks. HSBC calculates in pounds sterling. 500,000 Hong Kong Hong Kong dollars sounds like a lot, but it's actually less than 6,000 pounds. Even ordinary Britain account managers aren't interested in such small loan businesses." Song Tianyao shook his head, saying helplessly, "You need at least 10,000 pounds. HSBC's interest rate for a 10,000 pound loan is 8%, while the interest rate for a 20,000 pound loan can drop to 6%. If you're considering borrowing more, I can help. But if it's too little, the Britain won't even look at you."
"Twenty thousand pounds is nearly two million Hong Kong Hong Kong dollars. The interest rate of six percent is very low, but... the amount is too large." Xia Zuoji was quite tempted when he heard about the six percent interest rate. You should know that most China person money shops and banks in Hong Kong now offer interest rates of 1.8% or 2.1%, and even the lower ones offer 1.6%. A six percent interest rate is already considered very attractive.
"Do you know how much I borrowed from HSBC for my faking business?" Song Tianyao flicked his cigarette ash and made a six-pointed finger gesture. "I borrowed six million."
"HSBC is willing to lend you this much?" Xia Zuoji was stunned for a moment, then blurted out.
Song Tianyao smiled at Xia Zuoji, "I've got Mr. Chu as my guarantor, so I can borrow as much as I can. If I can't repay it, Mr. Chu will have to pay it for me. With Mr. Chu's business, the banks are more than happy to lend me more. If you're considering a loan from HSBC, I can sign a guarantee for you. No more than a million or two, but with my current business, I can still get it. Mr. Xia, I only said this because you're so generous and willing to share your goods with me. If you need help, just call me, and I'll be there without hesitation."
In his last few words, Song Tianyao spoke with sincerity and fervor.
"Okay, I'll think about it. There are very few China person willing to help us India in Hong Kong. Mr. Song, I am so grateful for your kindness that I can never repay you enough." Xia Zuoji also stood up with some emotion and said earnestly to Song Tianyao.
After signing three copies of the contract worth Hong Kong dollars 30,000 with Lou Fengyun, the Xia family brothers said goodbye and left Song Tianyao's factory. Only after walking a hundred or two meters did Xia Harry say with a smile, "Brother, look how grateful Song Tianyao is to you. It seems you were right; giving him a little something sweet made things easy, didn't it? He even agreed to guarantee your loan."
"That's how business is," Xia Zuoji said, rolling a cigarette. "It's unlikely we can easily shake off Song Tianyao; it's better to give him some benefits."
"But what if Song Tianyao finds out we've actually prepared to supply tens of thousands of Braids to other factories? What will we do then?" Xia Harry thought of a problem, "He'll probably be furious, but there's nothing he can do. After all, we've already silenced him with 20,000 Braids, so he can't directly accuse us."
"That's a problem. I do need a loan recently. Perhaps we should go back and look into it. We can get a loan through Song Tianyao first, with him signing a bank guarantee. That way, if he wants to back out, it's unlikely. If we don't make money and can't repay the loan, his business will be taken away by the bank. So even if he's unhappy, he'll be forced to side with us because of the loan." Xia Zuoji said, a cigarette dangling from his lips. "China person value repaying kindness tenfold. I gave him 20,000 Braids, and he was willing to guarantee a loan for me, even making an extra 10,000 Hong Kong dollars. That's how China person business is done; they're more accustomed to acting on emotions."
Xia Harry said with a bright smile, "Brother, you really understand the China person. China person 're so easy to fool. Just say some sentimental things, talk about loyalty and friendship, and they'll treat us like close friends. Don't they know that business is business?"
"If they find out, how will we make money?" Xia Zuoji exhaled a smoke ring, watching it dissipate in front of him with a deep gaze, and said leisurely.
Chapter 269 Hair?
After dismissing the two India, Song Tianyao rubbed his temples and sat calmly at his desk. Lou Fengyun walked in from outside. "Didn't you already have Fuyixing and Chao Yong Yi's local gangsters at the docks find out that these two India currently have nearly 100,000 Braids in stock at the Hong Kong dock warehouses? What are you still thinking about?"
Song Tianyao picked up his coffee, which had gradually cooled, and took a sip. Ignoring Lou Fengyun's question, he remained silent for a while before speaking, "Where's Scribe Hui? Tell him to come see me. I have some things I need him to do. I'm short-handed. It seems better to have someone like Scribe Hui than not. He might be careless in his work, but at least he's loyal and won't have any ulterior motives."