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Chapter 1153 - 1153 180 6000000 Huge Financing_3

1153: Chapter 180, 6000000 Huge Financing_3 1153: Chapter 180, 6000000 Huge Financing_3 Moreover, these high-risk businesses are the foundation upon which the Near East Development Bank was established.

Investing is not just about the economy, political factors must also be considered.

If the bank can’t provide funding for Near East development, why should the Kingdom support us?

Since its establishment, the Kingdom has never imposed a single tax on the Near East Development Bank nor applied any restrictive measures—all of these are the returns on our investment.

Among the guests present, there are representatives from several of the Kingdom’s chambers of commerce, your Excellency, if you have any doubts, you can verify with them.”

Investing in “politics” is indeed a sufficiently compelling reason.

If the Near East Development Bank wants to expand abroad, it can’t do without the support of the Kingdom.

In theory, as long as it gains strong support from the Alpha Kingdom, the Near East Development Bank has the complete ability to expand its business to all human-controlled areas on the Northern Continent.

Compared to this vast market, the investment in the Near East region truly pales in comparison.

If it’s a loss, then consider it an expense for expansion.

A bank with a monopoly, is there even a worry that it can’t earn back those investments?

Moreover, loans aren’t a total loss, the bank is recovering interest every month.

If the Near East stays peaceful for a few years, it’s possible that the costs may be recouped.

However, all of this is predicated on the condition: the loan business in the Near East region must not expand further.

If it continues to inflate, the risk cannot be controlled.

“Baron Rudolf, we can understand investing in politics and that everyone might accept a certain cost.

Nevertheless, there must be a measure, a way to find a balance between revenue and investment.

Of course, your bank’s collateral guarantee system is very good, able to minimize risk to the greatest extent.

But isn’t this profit report a bit exaggerated?

According to the figures here, you don’t have to do anything, and in the coming year, you’d have over a million gold coins in income?” Viscount Laurent questioned again.

Seeing this scene, Baron Rudolf was instantly much relieved.

Nitpicking is a sign of a potential buyer—why be so serious if he had no interest in the Near East Development Bank?

Viscount Laurent is one of the leaders of the four major chambers of commerce on the continent, as long as he’s convinced, today’s investment meeting won’t fall apart.

“Your Excellency needn’t worry, the accounts are all verifiable.

I can guarantee with the honor of the Clan that all data are authentic.

If the investment is successful, we can also sign a Magic Contract.

If everyone is still not reassured, you are also welcome to offer your own Magic Contract.

Compared to these detailed issues, actually, you could initially appraise the Near East Development Bank.

I suppose everyone came here today not just to invest, but even more so to learn the operating model of the Near East Development Bank.

Profitable business is hard to come by, especially this kind of stable, lucrative venture, which is even rarer.

If you miss this, you may regret it for a lifetime.

The most valuable asset of the Near East Development Bank now is its business model.

So, when you evaluate, please carefully consider the premium for this part.

Once cooperation is achieved, as shareholders, you would be able to send people to observe the bank’s daily operations.” Baron Rudolf said with feigned calm.

Facing so many important figures, if not for Master Hudson sitting beside him, he would have already panicked.

However, as the president of the bank, there were things he had to confront himself.

Master Hudson had already completed his task by coaxing these people to come.

When it comes to specific investments, everyone will certainly consider the management aspect.

After all, even the best business model requires people to operate and manage it.

If the management is incompetent, even a monopolistic and highly profitable industry can still manage to run at a loss.

From the outside looking in, the profits of the Near East Development Bank now seem excessively high, but all of this is predicated on—monopoly.

The Alpha Kingdom cannot possibly have only this one bank forever.

In the future, competitors are bound to emerge.

Once any industry begins to cannibalize itself from within, profits will plummet dramatically.

The tax-exemption treatment is equally unsustainable.

Once the bank’s operating model is understood, the Kingdom can establish corresponding tax laws.

However, these issues are clearly obscured today.

“Near East Development” is a nice slogan, and those who are in the dark might think it is an agreement reached between Hudson and the Kingdom.

Regrettably, this is just an unspoken understanding between Hudson and the Kingdom Government.

The Near East Development Bank fills the funding gap in the Near East strategy, and the Kingdom supports the development of the bank.

Once the Near East development strategy is completed, or if the Kingdom declares the strategy has failed, the good days for the Near East Development Bank will come to an end.

A bank, which is a highly profitable industry from its inception, is destined not to keep out newcomers.

Even if Hudson pulls more people onto this venture, in the future, some will leave to go it alone because they are not satisfied with the profits at hand.

Seeing the troubled expressions on everyone’s faces, Hudson knew they were stumped.

Valuations of emerging industries are the most difficult; there are no references, it’s all purely based on intuition.

The unique nature of a bank dictates that it cannot be valued based on assets.

In fact, the Near East Development Bank doesn’t have much in the way of assets.

Even as Hudson continued to inflate costs, the initial investments were just moderate.

The profits are high, even when making money from others’ money.

Subsequent capital injections into the bank have all been in the form of deposits; Hudson has not foolishly used his own money to increase the bank’s capital.

“If everyone feels it’s difficult,” Hudson then said, “then just write your valuation on a piece of paper.

Tom, bring some paper and pen, and distribute them to everyone.

The amount of financing this time is not large, totaling only 6 million gold coins.

If it’s simply split among all parties, it would be meaningless.

Moreover, having too many shareholders is not conducive to the operational management of the bank.

For fairness, I have also set a valuation for the Near East Development Bank.

Anyone who values it above this can move on to the next round of negotiations.”

As Hudson’s words fell, people wanted to send their best to his entire family.

A massive financing of 6 million gold coins, and he still called it a small amount!

Throughout the whole Continent of Aslante, which project would dare to make such a brazen request?

You should know that the annual fiscal revenue of the Alpha Kingdom is only a little over 10 million gold coins.

Even though the feudal lord system is indeed weak in tax collection, it is still a substantial figure.

However, inward complaints don’t prevent everyone from joining with determination.

And there’s no other reason; the profits of the Near East Development Bank are there for all to see.

Master Hudson even dares to sign a Magic Contract with everyone, guaranteeing that the profitability data is true, so financing 6 million gold coins seems reasonable.

In fact, one could infer the wealth disparity from everyone’s expressions.

Representatives from the Kingdom were all stunned, a clear indication of their not-so-deep pockets.

Although representatives from the chambers of commerce of the Central Continent were also somewhat shocked, more of them were contemplating how much to value.

The few representatives from the South Continent were the most composed; not all countries are as poor as the Alpha Kingdom.

The poorest kingdom in the South Continent has a fiscal income more than double that of the Alpha Kingdom.

The strong remain strong, and wealth tends to concentrate in prosperous areas.

The economically advanced South Continent gathers the most wealth from across the entire Continent.

6 million gold coins, in the South Continent, does not carry the same shocking value as in the Northern Continent.

Moreover, this funding is not being provided by one party alone but is split among the many powers present, averaging just a few hundred thousand for each.

Now, they need to consider what kind of valuation to give to ensure they aren’t eliminated while not suffering a loss.