America 1982-Chapter 203 - 74: Black Humor_3
"Let’s talk business, Mr. Wealthy, remember when I told you that when the time is right, you could take out money to invest, and then your daddy Tommy would give you some pocket money? The time has come."
"How much money do you need?" Stephen asked, as he heard Tommy bring up the topic of taking out money to invest and took a sip of his coffee:
"Just give me a reason, so I have one when I notify the wealth management company’s manager. Even if you say you need the money to cure AIDS, it’s fine, any reason will do."
"Six hundred thousand OSS users are eagerly anticipating buying computers from me. After making our mark in the software industry, it’s natural we step into hardware too. If we don’t secure our footing now, the chances of those big companies giving us another opportunity are even lower than the chances of God making an appearance," Tommy said to Stephen:
"During this period, EFF, Actor Corporation has already made preliminary contacts with several companies within the industry. It’s very likely that their money will come in. Do you understand? Actor Corporation can’t always belong to Tommy alone, and as such, my shareholding will be diluted, but it’s not without gains. I am also ready to transfer some shares and cash in more money. The company’s valuation is all imaginary, as long as the cash is real."
Stephen put down his coffee cup, picked up a pack of cigarettes and lit one, then threw the pack to Tommy, "Get to the point, Tommy, I’m not interested in how much petty cash you make."
"Mr. Benjamin Rosen of Compaq has urged me many times; as soon as I give the nod, he’ll invest in Actor Corporation under the name of Compaq. He would remove the Compaq logo from the computers they produce and replace it with the Actor brand. In his view, even if only one hundred thousand out of the six hundred thousand users are willing to buy computers, that sales volume would be enough to scare everyone." Tommy also took out a cigarette and put it in his mouth:
"I can give away software for free, but I can’t do that with hardware; everyone should understand that, right? And we can assemble it ourselves or outsource the manufacturing to those smaller companies that IBM and Compaq, together with others, have blocked from the market. Plus, we can freely include some software from within the EFF Alliance that Actor Corporation has invested in. I’m not greedy; I’m not interested in the hardware market above a thousand yuan. IBM, Apple, Compaq, they can compete all they want, but I want a stake in the sub-thousand yuan computer market."
Stephen exhaled a puff of smoke, "I’m not a computer science major, Tommy. Don’t make it too complicated. Just tell me straight, how much money does your Actor Corporation need?"
"My Actor Corporation doesn’t need money," Tommy said to Stephen.
Upon hearing Tommy’s words, Stephen choked on his smoke, coughing twice, "Then why the hell are you asking me to take out money? Is it to join you in opening a strip club?"
"What I mean is, rather than letting someone else empty the wallets of those six hundred thousand people and possibly more, it’s better to leave it to me, at least I’m willing to change their lives," Tommy explained to Stephen:
"Do you know what microloans are?"
"Aren’t loans supposed to be the business of banks?" Stephen was momentarily confused, "Taking out all six billion to invest, even that would only equate to a very small bank, Tommy, not to mention I can’t possibly invest all of it in your bank."
Tommy gestured for Stephen to listen to him until the end, "I plan to start a microcredit bank that lends unsecured loans to those who trust me, for buying computers, software, or doing other things they want to change their lives for. I won’t lend to the wealthy; I will require that borrowers live below the poverty line and are willing to accept the bank’s suggestion to form a five-person customer group. They’ll be in it together, and once the group is established, they’ll be able to receive a bank account, obtain loans, and hold a group meeting every week under the supervision of a bank employee. During these meetings, they’ll repay their loans and share their weekly progress or changes and exchange ideas."
"Every week? That frequency seems too high. I’ve heard that household bills are only sent once a month," Stephen said, puzzled.
Tommy looked at the cigarette in his hand and said, "This high-frequency contact from weekly loans effectively ensures the repayment rate because it keeps people constantly winding the spring in their minds. Plus, borrowers also need frequent encouragement or guidance. It’s a positive interaction. If it were a cold call for payment once a month, trust me, the bad debts would pile up and give you a headache."
Stephen frowned, somewhat concerned at the thought of lending money to a bunch of poor people, though indifferent to money himself, "What if the borrower doesn’t repay after a week?"
"They won’t get the next installment of the microloan and will wait for someone to come to their door to take away the computer and software, etc. The bank’s loss will be relatively smaller. Plus, if the other members of his group feel he has a valid reason, they can pay off the loan for him to ensure he can continue to stay in the group. If no one wants to help him, he needs to leave. There’s no possibility of having no bad loans at all; the idea is to encourage these people to change their lives as much as possible. Otherwise, how would the bank earn a good reputation? This is how you and I, if we decide to run for President and Finance Minister of this country, not the kind of house role-playing games at a summer camp. These are valuable reputations," Tommy explained his strategy.
Stephen shook his head, "This is bound to lose money. It won’t last until you and I run for President. Most likely, your computer company will profit the most because this bank has to use real money to buy computers and software for these poor people. If they refuse to repay their loans, that’s a bad debt. Tell me, how do we profit?"
