Chapter 9: You’re Afraid I Won’t Be Able to Repay When the Time Comes, Aren’t You?

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Yang Changdao was very familiar with this kind of mortgage business. Although their finance company would certainly conduct further investigations later, making an initial judgment on authenticity posed no major difficulty. Besides, funds were typically only disbursed after thorough verification. Given Lin Haoran’s status, there was no need for him to resort to forgery in this matter. Lin Wan’an’s reputation in the industry was quite good, which in turn benefited Lin Haoran.

“Haoran, I’ve reviewed everything. With this cement factory and the land deed as collateral, the maximum loan amount would be a little over 10 million Hong Kong dollars. Additionally, considering you are the young master of the Wan’an Group, I can authorize up to 20 million Hong Kong dollars. But if you want to borrow 50 million, I’m afraid I can’t help!” Yang Changdao said bluntly.

“Uncle Yang, 20 million Hong Kong dollars is not my target. If I only wanted 20 million, I wouldn’t have come to you. You know, as a premium client like me, I could easily get that amount approved at Huifeng Bank or Standard Chartered Bank. Besides, many new banks have been established in Hong Kong recently, and I believe they would also be eager to do business with a client of my caliber. Yet, I didn’t approach any bank; I came directly to you, Uncle Yang,” Lin Haoran said, shaking his head.

Though Lin Haoran’s words were rough, they were truthful and reasonable. Compared to other banks, your Yumin Finance Company doesn’t have much advantage. Why should I cooperate with you? Large banks’ vast capital, to put it bluntly, mostly comes from depositors’ savings. If these funds are idle within the bank rather than being effectively invested or loaned out, the bank faces a serious risk of long-term losses because the capital fails to generate the expected returns.

Moreover, banks pay interest to depositors to attract their funds. Without reasonable interest returns, why would depositors willingly store their money in banks? Therefore, even a large state-owned bank like Malaysia’s Yumin Bank, which has abundant funds, strives to maximize its own profits. Many clients of Yumin Finance Company in Hong Kong come here precisely because Yumin can offer larger loan amounts.

For a capable entrepreneur, Yang Changdao would naturally agree to loan more funds. But Lin Haoran is too young and not the actual controller of the Wan’an Group. Lending too much to him carries significant risk. Based on this, Yang dared not approve too large a loan for Lin.

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In this world, there are such people—while you covet others’ interest, they have quietly set their sights on your loan principal. Having been in this line of work, Yang Changdao had seen many such cases and naturally feared encountering such individuals.

“Haoran, here’s what I can do: as the general manager of Yumin Finance Company in Hong Kong, I can approve a loan of 30 million Hong Kong dollars for you. Given your qualifications, this is the highest amount I can authorize. You know Yumin Finance Company isn’t mine—I’m only a regional manager. All the funds I approve require secondary approval from higher-ups, who also conduct risk assessments. If the risk evaluation fails, no matter what I promise, it’s useless. Don’t you agree?” Yang Changdao considered for a moment and decided to increase Lin Haoran’s limit by 10 million.

He wasn’t unwilling to lend more—after all, the more loans issued, the better his performance. But he couldn’t bear the risk. If the money couldn’t be recovered, his responsibilities would be enormous.

“Uncle Yang, you’re afraid I won’t be able to repay on time, right?” Lin Haoran smiled and asked.

Yang Changdao remained silent; Lin Haoran’s request put him in a difficult position. Judging by his expression, Lin Haoran’s guess was correct.

If the loan were only secured by shares in Wharf Holdings, 30 million Hong Kong dollars would suffice. Too much capital would actually hinder discreetly acquiring shares in Wharf Holdings. But Lin Haoran’s target was not just Wharf Holdings—he had another objective.

If he could get an additional 20 million Hong Kong dollars, he would have plenty of operational space ahead.

“Uncle Yang, my lands and factories can serve as collateral with your company, which effectively secures over 10 million in funds with no risk. As for the other 30 million Hong Kong dollars, Uncle Yang, you’re simply worried I might run off with the money.

Here’s what I propose: I won’t make things difficult for you. Let’s be straightforward. The reason I need the loan is to acquire a listed company valued at around 100 million Hong Kong dollars. It’s a very high-quality listed enterprise that has never posted a loss since going public.

I need to become the major shareholder of this company. While I can’t disclose which company this is for now, once the acquisition succeeds, I can temporarily pledge the shares to Yumin Finance Company, eliminating your risk concerns.

Moreover, I’m the young master of the Lin family. The Wan’an Group is right there; I can’t run away. My father has only two sons. Even if I can’t repay, Uncle Yang can pursue repayment from my father at Wan’an Group, further reducing the risk.

Additionally, if Uncle Yang helps me secure this loan, I will immediately pay you a 500,000 Hong Kong dollar gratuity,” Lin Haoran added.

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“I believe that, given your status, Uncle Yang, persuading Yumin Bank behind you to approve this loan will be a minor matter. I wonder if my terms can move you?

Business inherently carries risks. Honestly, the loan conditions I’m offering already minimize risk to the greatest extent. Your hesitation is solely due to my youth. But youth is not my fault. If I invest this money and eventually lose, it’s impossible to lose everything, right?

When repayment is due, any loss will be mine, not Yumin Finance Company’s. Our Lin family’s business is all in Hong Kong; I can’t just disappear.

If Uncle Yang agrees, this deal is done. If my terms can’t persuade you, then I’ll have to seek other banks or finance companies,” Lin Haoran said, unwilling to waste more time with Yang Changdao and laying out his bottom line directly.

The listed company he mentioned was certainly not Wharf Holdings, a giant beyond his control. Lin Haoran merely intended to use the share acquisition battle with Wharf Holdings to secure a substantial sum of truly his own startup capital.

With so many listed companies in Hong Kong, he naturally had his target. The 500,000 Hong Kong dollar gratuity was already considerable—equivalent to 1% of the 50 million Hong Kong dollar loan.

Hong Kong banks’ interest rates at this time typically ranged from 5.00% to 5.25% annually. In this fiercely competitive banking era, some banks even offered rates below 5% to attract customers.

Of course, Lin Haoran did not yet qualify for such conditions, so he did not intend to haggle over the interest rate.

His most important goal now was to secure the needed funds as quickly as possible.