Chapter 71: Substitution and Pledge

"You want a company from Weiling City to provide a guarantee?"

Lan Yaoming fell into deep thought upon hearing this.

In all his years in business, this was the first time he'd encountered such a situation—a company guaranteeing a private individual.

What if the individual defaulted on the debt? Would the company be jointly liable, forced to use its assets to cover the loss?

Clearly, this was fraught with complications! If the other party breached the contract, it would be the start of a protracted legal battle.

But if he refused? The deal would fall apart instantly before his eyes!

He was caught between a rock and a hard place—what should he do?

At this moment, Lan Yaoming was utterly at a loss.

He wanted, desperately wanted, to close this deal.

First and foremost, regardless of how things developed, he’d receive three hundred thousand right away! That sum would be enough to keep his factory running smoothly.

And Wu Ya had promised: in twenty days, he’d pay another three hundred thousand!

That meant, within a month, he’d almost recoup his costs. On the surface, the deal was doable!

"What kind of company is this? State-owned or collective? And what’s their guarantee threshold—asset collateral or credit guarantee?"

In the end, Lan Yaoming still had to ask a few questions.

Having a company guarantee Wu Ya was, comparatively, far less risky. After all, an individual was too unpredictable—if his business failed, he could simply disappear. Who would you turn to then?

But with a company as guarantor, even if it came to court, it was better than chasing after a vanished debtor, wasn’t it?

But he had to know what kind of company it was. If it was state-owned, Wu Ya’s intentions would be questionable—state-owned companies, being national assets, would never guarantee an individual. It would be illegal!

If it was a collective enterprise, then the credibility was higher—these companies were more flexible, and decisions typically depended on the person in charge. But there were still issues.

What was their guarantee threshold? Would they guarantee the entire remaining sum, or only a portion?

And would the guarantee be direct asset collateral, or just a matter of credit?

There were endless issues to consider. A single misstep, and the risks would be enormous!

"Director Lan, the company acting as my guarantor is a collectively-owned enterprise under the local street administration. And the guarantee is a full asset collateral!"

A collective enterprise, full collateral.

Wu Ya’s answer instantly eased the tension gripping Lan Yaoming’s heart.

Full collateral. Without certain preconditions, Wu Ya would never have the right to use Sicheng Textile Mill as collateral for Lan Yaoming.

Don’t forget, when he’d negotiated with Director Pei, the collateral was the production line itself, in exchange for Sicheng to act as his guarantor.

It was, in essence, a simple guarantee swap.

But in those days, when all kinds of enterprises were just beginning to flourish, such arrangements were unheard of and unimaginable!

Wu Ya was different. In the economy of China twenty years later, all these methods would be routine.

Even if he suffered a loss in the end, Sicheng would not be harmed at all. At worst, Lan Yaoming would take back the production line, and that would be that!

Because if Wu Ya went bankrupt, the production line he would reclaim became Sicheng’s asset. And Sicheng, as guarantor, would naturally use those production lines to cover the debt.

"Ha, that’s excellent! If a collective enterprise can provide you with a full collateral guarantee, what do I have to worry about?"

Lan Yaoming finally felt at peace.

Full collateral. Even if it came to a lawsuit, there was nothing to fear. The worst-case scenario was acquiring another textile factory for himself!

There would be trouble, but no loss.

But he had no idea. The key to this guarantee swap lay in the timing of the final payment. As long as Wu Ya controlled the repayment schedule, all risks would remain manageable.

But if the schedule slipped, the greatest risk would still fall on Lan Yaoming!

If Wu Ya acted in bad faith, he could drag out the final three hundred thousand payment for years, then declare bankruptcy, unable to repay. In the end, all Lan Yaoming would get would be a single, battered production line.

"Heh, since you’re reassured, Director Lan, let’s get started drafting the contract, shall we?"

Wu Ya smiled as well.

People in this era were truly sincere—so easily persuaded.

Luckily, he wasn’t a villain, otherwise Lan Yaoming would have lost his shirt.

"Good! I’ll call in someone to draft the contract right away! Once both parties confirm, we’ll sign on the spot and make it effective immediately!"

A major deal had finally come to fruition.

Lan Yaoming hurried out of the office.

"If you weren’t in such dire straits, I wouldn’t have agreed so readily! Ah, that three hundred thousand in twenty days! Huang Silu, I hadn’t intended to take your fifty thousand, but now it looks like you’ll have to honor your promise. In return, I’ll make sure you make a handsome profit too!"

Watching Lan Yaoming’s excited departure, Wu Ya couldn’t help but smile wryly.

He had changed his mind earlier—agreeing to pay another three hundred thousand in twenty days—because he’d seen how Lan Yaoming’s factory was struggling under the burden of three idle production lines.

It reminded him of his own family’s tailor shop back in the day.

Though it was a small shop, and nothing compared to a big factory, business principles were the same!

So he couldn’t bear to be ruthless.

And that led him to think of Huang Silu, and to change his initial intention of staying away from the bond market in the short term.

"Mr. Wu, the contract is ready. Please take a look."

Soon, Lan Yaoming returned, clutching several freshly printed pages, his face alight with excitement.

"Very good."

Wu Ya carefully read through the contract, signed his name, and stamped Sicheng’s seal on the guarantee agreement.

With the two contracts signed, Lan Yaoming could finally relax.

"Mr. Wu, I’ve already reserved a place for dinner. Let’s head over to the hotel to celebrate!"

With that, he grabbed Wu Ya and led him out without waiting for a reply.

The managers who had accompanied them that afternoon naturally followed.

At that moment, each wore a somewhat awkward expression.

"Is this young man really a boss?"

"Remarkable! So young, and such achievements. Truly impressive!"

"Indeed. When I was his age, all I knew was how to eat and loaf around!"

Yet despite their quiet muttering, they were all full of admiration for Wu Ya.

Suddenly—

"What’s there to envy? All he did was spend three hundred thousand to walk away with our equipment worth a million! I really wonder what Director Lan was thinking!"

A discordant voice rang out sharply among the crowd.