Chapter 176 - 177 Bank Loan

Words : 1041 Updated : Sep 21st, 2025

Chapter 176: Chapter 177 Bank Loan Williams smiled and said, "Haha, General Nussen lives in Detroit after retirement. He has a farm in the countryside and enjoys a leisurely life. I will contact him for you later." After returning to New York from Virginia, Hardy instructed Andy to contact the banks to discuss the loan business. As for going to the bank and asking for a loan, no way. Hardy is already a rich man with a lot of assets. In the conference room of the Hilton Hotel, Andy invited six bank credit executives, including Citibank of New York, First National Bank of New York, Bank of New York Mellon, Bank of America, First National Bank of San Francisco, and Wells Fargo. These people came because of Hardy’s name. Hardy is now a significant figure in the business field. HD Security, HD Films, "N.Y.T" TV Factory, Playboy Magazine, Barbie Dolls, and Rocky Mountain Mineral Water, are all real money making enterprises. Andy sent invitations to these banks, indicating that Mr. Hardy is ready to enter the aviation industry and inviting them to discuss loan matters. What is a bank? It is an enterprise. The purpose is to make money. When banks lend money, they first look at the risk and then the return. Hardy holds many high quality assets, and the banks have no doubts about his ability to repay the loan. After receiving Hardy’s invitation, these banks all sent representatives, mostly at the level of the head of the bank’s credit department. Andy smiled and said to these people, "Thank you for coming, everyone. Let me introduce myself first. I am Mr. Hardy’s economic advisor. My name is Andy. Before discussing loan matters, I would like you to look at a contract first." Andy handed folders to the staff, who distributed them to the bank’s credit supervisors. The contract content was simple, just a purchase contract. Hardy established HD Airlines, owning 100% of the shares. HD Airlines purchased 51 obsolete transport planes from the military. This contract showed that the deal was completed, meaning Hardy already had 51 aircraft. aircraft were undoubtedly heavy assets. "Mr. Hardy was really generous, buying 51 aircraft at once. This puts him among the top 10 airlines in the United States." A supervisor complimented. Some asked in confusion, "How is the performance of the obsolete aircraft? How many years of service life are left?" Andy smiled and explained, "Although these aircraft are second hand, their performance is absolutely fine. We have asked Douglas maintenance personnel to check them. These aircraft are basically about 80% new. After the company’s systematic maintenance, they can be used for another 20 to 30 years without any problems." "The factory price of the C-53 and C-47 is about 200,000 US dollars. I believe everyone has an estimate of their value now. We have asked experts to evaluate what price these aircraft can fetch if they are resold, and the conclusion is that they can definitely be sold for about 110,000 US dollars." In fact, Andy exaggerated this point a little. It is not possible to sell it for $110,000, but it is absolutely possible to sell it for $80,000 or $90,000. Even if Hardy sells it directly now, he can still make more than 2 million US dollars. Think about how easy it is to make this money. Without extremely strong social connections, who would let you make this money? Andy glanced at all the bank managers and said, "HD Airlines is going to use this batch of aircraft as collateral to borrow 5 million US dollars from the bank. The loan period is 5 years. We hope that the loan interest rate will be reduced by 1 percentage point from the normal loan interest rate." As soon as Andy said this, the managers immediately murmured. "Using this batch of aircraft to mortgage $5 million is too high. 3 million is about right." "The current loan interest rate is 4.25%. Reducing it by 1 percentage point is too much. The bank will not make any money at all." Andy had guessed the reaction of these managers, he smiled and said, "After the establishment of HD Airlines, there will be a lot of business and a lot of working capital. Our funds will naturally be placed in the bank that cooperates with us." No matter when, cash is king. Airlines are also cash rich companies. Large sums of money are deposited in banks, and banks can use this money to continue lending and making money. For banks, cooperating with such companies with sufficient cash flow will benefit them the most. "Everyone, our conditions are already here. You can go back and discuss it. If there is a result, you can contact me." Does a company have the ability to challenge banks? Of course it does. Take, for example, a company like Amazon, which sells and delivers its products on demand. It never defaults and has billions of dollars in cash. Such a company has a low debt ratio, significant cash flow, and relatively low loan risk, and its cash flow can generate substantial deposit income. Banks are eager to lend to them. Banks aren’t charitable organizations. Their sole purpose is to make money. The wealthier you are, the more willing banks are to lend you money because they expect you to help them make money. If you’re strapped for cash, banks hesitate to lend because they fear you won’t be able to pay it back. It’s always been that way, realistic. The next day, Andy started getting calls from banks one after another. First National Bank of New York offered a $2 million loan with a 0.3% interest rate reduction, with the condition that HD Airlines financial business must be handled by them. Andy chose to decline outright. Citibank of New York called offering $3 million at a 0.5% interest rate reduction, with the requirement that HD Airlines cash flow must go through Citibank in the future. The terms were mostly within the acceptable range discussed by Andy and Hardy. The offer of $5 million with a 1% interest rate reduction was somewhat high, mainly to allow room for negotiation.

Chapter 176 - 177 Bank Loan

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