Chen Dong thought about these things and organized his thoughts before speaking.
“Brother Li, how about we try a different approach? Of the 20 million RMB loan we ultimately secured, not a large portion was actually used for shop renovations.”
"Elevators, freezers, shelves, central air conditioning...etc., 5 million is more than enough."
"The remaining 15 million RMB is the funds prepared for stockpiling goods."
As soon as Chen Dong said this, the corresponding images immediately appeared in the minds of the group.
Upon closer reflection, that's indeed the case.
Li Aiguo nodded and said, "Brother Chen, you're right. With such a large scale, stockpiling is very necessary."
"I wonder what the other way you're referring to is?"
Upon hearing this, Chen Dong smiled and said.
“Brother Li, the loan amount of 20 million remains unchanged, but you don’t need to deposit this money into my account. Instead, keep it in your bank and give it to our supermarket through credit.”
"The initial renovation and material costs will be paid to the merchants through your China Construction Bank. The interest generated on these funds will be whatever amount is due."
"And the funds needed for stockpiling goods can be obtained through bank drafts."
A banker's bill of exchange is a bill of exchange that has undergone acceptance procedures.
In a transaction, a seller issues a bill of exchange to collect payment from a buyer, and the drawee writes the word "acceptance" and signs the bill to acknowledge payment upon maturity.
The payer becomes the acceptor of the bill of exchange after acceptance.
A bill accepted by the purchaser is called a "commercial acceptance bill," while a bill accepted by a bank is called a "bank acceptance bill."
The bill of exchange that Chen Dong mentioned is a bank-accepted bill of exchange.
For sellers, offering deferred payment terms to existing or new customers can increase sales and enhance market competitiveness.
For buyers, using deferred payments allows them to purchase more goods with limited capital, minimizing the occupation and demand for working capital, which is beneficial for expanding production scale.
Compared to loan financing, it can significantly reduce financial costs.
Wow, that's brilliant!
Ma Guoliang admired him to death.
How could Chen Dong have come up with such a method? Why didn't he think of it in the first place?
Banker's acceptance bills are a similar service offered by HSBC.
It means that the bank grants a credit line to the company, and the company then uses the credit line to issue banker's acceptance bills.
The interest rates are also much lower than those for commercial loans.
Although Ma Guoliang didn't understand why Chen Dong insisted on taking out a loan, the acceptance bill model did reduce the financial pressure.
At least, you won't have to hand over your hard-earned profits to the bank and have worked for nothing.
same.
Li Aiguo's eyes lit up.
What Chen Dong said is indeed a solution.
With $5 million in cash, there's no problem using it to borrow 23 million RMB; in fact, the bank would be more than happy to do so.
Since $5 million is a currency, if it is directly converted into RMB, its value would exceed 23 million RMB.
The shop purchased for 2300 is a tangible, real asset that can be seen and touched.
Using fixed asset loans is a bit more complicated in terms of approval, involving appraisal departments, marketing departments, and loan departments—all of which are unavoidable.
Even as the president of the bank, Li Aiguo was still subject to this limitation.
If it's just a credit line, it's much simpler. The assessment department only needs to confirm that the value of the shop is greater than the credit line amount, and then the bank can reach a credit agreement with the customer.
It is much faster and more efficient, and the interest rate is much lower than that of commercial loans.
Before Li Aiguo could speak, Chen Dong threw out another trump card.
“Brother Li, the collateral for the credit line is the shop contract. At the same time, I can also promise you that the supermarket’s cash flow and staff salary settlements will all be handled through your China Construction Bank.”
this!
This was a wonderful surprise.
Anyone familiar with banks knows that customer development has always been an important internal metric for banks.
Especially enterprises and public institutions.
Financial transactions, cash flow, and cash reserves.
What Chen Dong mentioned would qualify him as a high-quality customer in a bank.
Imagine if the supermarket's product contracts were held by a bank. The bank wouldn't worry about bad debts, non-performing loans, or other problems. They could even use the property for judicial auction to recover their funds.
This has reduced the risk of supermarket violations, and Chen Dong said that the supermarket's cash flow will also be placed in the China Construction Bank.
By looking at a supermarket's sales figures, you can clearly see its operational capabilities; whether it's making a profit or a loss is immediately apparent.
Therefore, the risk of the supermarket defaulting on its contract is essentially zero, making it a sure-fire way to make money.
"Brother Chen, do you want to put the supermarket's cash flow into our China Construction Bank as well?"
It must be said that Li Aiguo was very tempted by Chen Dong's proposal.
Happiness came a little suddenly, and he could hardly believe it.
Chen Dong was practically his lucky star, no, he was more like a money-bringing boy.
Li Aiguo felt somewhat ashamed. From the day he met Chen Dong, this young man had been constantly reshaping his status in his heart.
The benefits Chen Dong brought him alone were far more impressive than the hard work of developing a large enterprise's client base.
"right!"
Chen Dong smiled and nodded, saying firmly, "Brother Li, we are different from those state-owned enterprises. This supermarket is a private enterprise that I opened for my parents, so my word naturally stands."
Private company?
Li Aiguo suddenly felt a little dazed.
He even regarded Chen Dong as the person in charge of a large enterprise.
My dear reader, there's more to this chapter! Please click the next page to continue reading—even more exciting content awaits!
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