stjorthotic Chapter 343 Building Trust is Trading Credit for the Future
Chapter 343 Building Trust is Trading Credit for the Future
Chapter 343 Building Trust is Trading Credit for the Future
When he heard the other party's answer that "they are not here to borrow money, but to deposit money," Lowell, president of First National Bank of Boston, was taken aback.
Then, he looked at Mr. Wallace sitting on the other side and said with a questioning gaze: "The merchant you introduced seems to be taking an unconventional approach."
Mr. Wallace smiled and remained silent.
Lawrence Lowell slowly closed the ledger, his fingertips lightly tapping the leather cover, then turned his gaze to Larry O.
During his nearly ten years managing the First National Bank of Boston, he met countless businessmen. Some pleaded poverty for loans, others flaunted their assets, and still others offered land deeds as collateral—
But no one ever brings a convenience store ledger and says, "I'm here to deposit money," with the same certainty in their eyes as a delivery rider.
"Mr. Livingston, your 13 convenience stores have achieved a net profit of $266,000 over three months with a stable gross margin of 41%, and daily turnover has never fallen below $500—what's even more remarkable is that all transactions are cash-based, with zero credit and zero bad debts."
Lowell paused for a moment and said, "Such a standard business model is extremely rare in all of New England."
"So what?" Larry asked back, his tone as calm as ever.
"So—" Lowell leaned forward, lowering his voice, "if you really just wanted to save money, you could have gone to any savings bank on the corner. But the fact that you walked into my office means your intentions go far beyond that."
Larry nodded and smiled. "I'm sorry! I didn't mean to make things difficult for you, but I'd like to start by showing our company's financial situation through the accounts."
Lawrence Lowell nodded. "Once, when I was rushing to catch a train, I passed by your convenience store and saw a large crowd inside—I didn't go in to shop myself, but your company's excellent performance left a very deep impression on me."
"It is a great honor to receive your praise, which proves that you have confidence in our company."
Lowell nodded slowly. "Your business model is unprecedented. You're not running a grocery store; you're creating a replicable unit of credit."
Larry didn't reply, but simply nodded. He understood that the representative of the Norwell family, a Boston conglomerate, had seen through the facade.
At this moment, Mr. Wallace, who was sitting on the sofa in the back, suddenly chimed in, "Rate rates are very high these days, with prime commercial loans now exceeding 10% annually. I think the reason isn't just because the coffers are empty—it's because trust is scarce."
Lowell turned to Wallace, took the lead in agreement, and continued, "Last week, we rejected loan renewal applications from three textile mills. They have factories, machinery, and orders, but we dare not lend to them. Their cash flow is terrible; often they take in $1 today, have to set aside $8000 to pay off debts tomorrow, and then extend credit for $5000 worth of goods the day after. Therefore, assets do not equal credit, and profits do not equal solvency."
As he spoke, Lowell turned his gaze to Larry and continued, "But your ledger is different. Every income has a receipt, every expense has a voucher, and the daily balance is clearly listed on it—what surprises me is that you even record the customer repurchase rate—77%!"
What does this mean? It means your business isn't based on luck.
Larry finally spoke, "As you can see, Mr. President, I'm not here to deposit money, but rather a sample of credit."
A glint flashed in Lowell's eyes; he understood! This wasn't a deposit request, but a credit offer. Livingston was sending a signal to the bank with irrefutable operational data: I deserve to be included in your core credit circle.
Lowell smiled, as if he understood Larry's unspoken message. "You want my bank to include your convenience store in its list of prime commercial assets?"
"Not only that!" Larry took a piece of paper from his pocket and pushed it across the table. "I hope your bank can issue a 'Business Stability Assessment Letter' for my company and agree that in the future, if I need credit support, I can use this letter and a record of continuous profitability to directly access my credit line without additional collateral."
A brief silence fell over the office.
Outside the window, a carriage drove by, the bells on the horse's neck ringing very clearly.
Larry's request was extremely audacious. At that time, banks had only ever made such a precedent for railroad tycoons, steel giants, and shipping magnates.
It's unheard of for a chain grocery store to make such a request.
But Lowell didn't hesitate for long; he placed his right hand on the bell on the table.
As the brass bell rang, the secretary pushed open the door and entered.
"Notify the Credit Committee that an additional item will be added to tomorrow's morning meeting: Consideration of the credit rating proposal for the chain grocery store!"
in addition----"
His gaze shifted to Larry, and he continued, "From today onward, Mr. Livingston, all of your company's deposits with this bank will accrue interest as priority depositors, and all account management fees will be waived."
When this condition was stated to his face, even Wallace, who was sitting on the sofa behind him, had a slight change in expression.
Because this level of priority was unprecedented, Mr. Wallace had been hesitant. He had seen the convenience store's accounts and, despite being surprised by Larry's success in running a physical business, he was still astonished that Larry expected him to be able to persuade the Lowell family, one of the Boston conglomerates.
But now, right in front of him, this impossible task has actually been accomplished!
Wallace's gaze was fixed on the back of Larry's head, seeing him again after several months. Wallace had an inexplicable feeling, as if this young man had undergone a complete transformation since then—
It was an indescribable feeling, just like when I first saw the aurora borealis in Canada—serene, silent, yet naturally breathtaking.
Wallace suddenly felt a sense of tension; he felt as if he could no longer keep up with the young man's pace.
He even had a secret feeling that helping Larry contact the banker was a way for him to curry favor with the banker.
What surprised me most was that I didn't dislike "climbing the social ladder" at all; on the contrary, I was very fortunate.
On the other hand, Larry expressed his gratitude for the president's personal recognition, saying, "Thank you for your generosity."
"No, no! You should thank me for my trust." Lowell leaned back in his chair, his tone gentle yet firm. "Mr. Livingston, I was surprised that you didn't come to borrow money, and I was even more surprised that your business acumen made me willing to reserve a blank check for you."
Larry smiled and raised his eyebrows. Since the other party was so friendly, he planned to reciprocate.
"A true banker knows to anchor a few unsinkable ships before the storm arrives."
Lowell narrowed his eyes and asked, "What kind of storm are you referring to?"
"I don't make any predictions—but I just got back from New York. The market sentiment there is much worse than in Boston, which seems unusual."
Larry said casually, "Interbank lending rates are soaring, railroad stations are piling up, and foreign banks are withdrawing large sums of gold from their American bank accounts —"
Lowell frowned. "What else do you know?"
"Railway bonds are piling up, and the backlash from the tariff war is getting worse—there's no result yet, but everything will be back to normal once the storm passes. By then, everyone will be short of money, but even more short of credible assets." Larry finished speaking, then smiled and closed his mouth again.
This is enough. On the one hand, it reciprocates the other party's kindness, and on the other hand, it further gains the other party's recognition of one's abilities.
Lowell remained silent for a long time, then suddenly laughed. "So you're saving money now to add a few more lines of low-risk, highly liquid assets to our balance sheet?"
"Exactly!" Larry readily admitted, "But when panic strikes, your bank will need to prove itself to the New York Clearing House."
You have ample capital and high-quality assets. Our convenience stores—the chain grocery stores you mentioned—are all hard assets that generate stable cash flow. These assets are far more reliable than a pile of depreciating railroad bonds.”
In that brief moment, the power struggle between the two became completely transparent.
Larry wasn't a businessman begging for a loan; he was a strategic partner offering something called "credit insurance."
Lowell was not a benefactor, but a shrewd risk manager.
They needed each other, yet they also tested each other. Fortunately, they both made the right judgments. Their mutual testing and goodwill eventually led to a tacit understanding at the intersection of reason and interests.
Lowell stroked his chin thoughtfully, then smiled and asked, "Do you plan to expand your convenience stores to other parts of the eastern United States?"
"Yes, Mr. President!"
Lowell nodded. "I will personally push for the board to grant you an unsecured line of credit of $25 with an annual interest rate of only 5%. The condition is that you must maintain your current operating model and submit a monthly operating report to our bank."
"No problem!" Larry smiled and waved his finger, then asked, "But what if we want to expand our convenience store network to other regions? Like New York, or Hartford—"
Larry's hidden meaning is simple: First National Bank of Boston is a regional bank, and if it opens a chain of convenience stores outside its territory, it will be difficult for them to effectively manage the business.
However, the two had already reached an understanding. Lowell also stated without hesitation, "As you know, Mr. Livingston! We have a close-knit industry association among banks. We provide lists of high-quality clients to our closest friends, family, and long-term partners."
If you have funding needs in other regions, and you can maintain this business model, then high-quality clients are a delicious cake wherever they go. I can help you introduce them to others—of course, we'll also take a commission!
"Deal!" Larry stood up and extended his right hand to the president.
Lowell gave Larry a deep look, a smile playing on his lips, and extended his hand as well.
The two hands are clasped together, with a steady and firm grip.
As the two walked out of the First National Bank of Boston, Mr. Wallace patted Larry on the shoulder with a smile.
"Good lad! You're even more impressive than I thought. You know, the Lowell family is the oldest and most troublesome conglomerate in the entire Boston area. You only deposited $18 and got such a generous credit line. Even if I brag to others, they won't believe it."
Larry smiled and replied, "So you don't need to tell anyone else about this!"
Wallace smiled and nodded. "Of course! I'm not stupid, but I can't express how shocked I am if I don't say it this way."
"You flatter me!" Larry replied with a smile.
Mr. Wallace looked around to make sure no one was watching, then lowered his voice and said to Larry, "Any opportunities to make a fortune lately?"
Larry thought for a moment. "Sir! Have you ever noticed the Great Northern Railroad?"
"Oh? He probably only has railroad bonds now, right?" Wallace immediately recalled the price of the bonds in his mind.
Larry suddenly said, "No! I went to Chicago before and found that the Great Northern Railroad workers there were on strike—apparently because the company was out of money."
Wallace immediately realized the problem! He quickly asked.
"They've run out of money? Wait, aren't they building a double track now? The previous one-way railway line has been operating all along! They shouldn't be without revenue."
"That's the problem—because they have so few actual orders, their revenue isn't even enough to cover their expenses," Larry said slowly and seriously.
The meaning behind this statement is very clear: there is already overcapacity on single-line routes. Even if the double track is repaired and the railway efficiency increases, the overcapacity situation will only continue to worsen!
Wallace narrowed his eyes, his fingers rubbing his chin incessantly. He suddenly remembered what Larry had just said to President Lowell.
Next year! Storm!
After a while, Wallace finally said, "You must tell me when you plan to do it!"
"No rush, Mr. Wallace. We need to wait for the shoe to drop—" Larry's face broke into a relaxed smile again. "Sooner or later, we'll have to face the Colt moment again." "If I need to allocate funds, I'll have to trouble you!"
Wallace smiled, his eyes crinkling. "Don't worry, Larry. I'm already preparing for next year—"
Larry returned to the warehouse, and Mr. K rushed to greet him, eagerly asking, "Did the boss reach an agreement? How much of a loan did they offer?"
Larry watched the warehouse workers busily receiving, packing, and shipping goods, and said softly, "I didn't ask for a single penny of loan, but from today onwards, our credit is worth $700,000."
Mr. K looked bewildered. "W-how is this calculated?"
Larry lowered his voice and said to Mr. K, "You'll see then. We're not in a rush to expand this year—wait until next year! We not only have properties with much lower land prices, but we also have much more bank loans than $70—"
Mr. K seemed to understand, but looking at Larry's confident expression, he felt inexplicably at ease.
Larry turned around and suddenly asked, "Has that former trader named Van der Poel arrived yet?"
"He's here! I've already arranged for him to go to the real estate project site. I've contacted the construction team. So, according to you, he'll be in charge of this project from now on?"
Larry nodded. "Yes! You're in charge of supervising him, and he'll keep a close eye on the project's progress. Make sure the construction team follows the design drawings I brought back—of course, don't touch the main structure; the model apartment I want needs to be built first."
Mr. K nodded to indicate that he understood, and then asked, "Huang Meitang's case is going to trial tomorrow—are you going?"
'
Larry waved his hand in refusal, "I've already made a deal with the senator—I can't interfere in this matter anymore."
I'm heading back to New York today, and it's time to issue the bets on changing the course of justice!
>