Starting with vegetable greenhouses in 1988

Chapter 217 (Two chapters combined)

1 month 15 day.

Wan'an Town Credit Union.

A stove was burning in the credit union lobby, making it much warmer than outside. Only one customer was at window number one, conducting business. Window number two next to it was also open, with Sun Liguo sitting behind it reading a newspaper and occasionally taking a sip of hot water.

"Creak..." The door of the credit union was pushed open from the outside. Sun Liguo looked up from his newspaper and gazed across the hall, where he saw a familiar figure walk in.

He stood up and greeted through the glass, "Hey, Brother Li is here."

Li Zhe walked into the hall carrying a net bag and asked with a smile, "Brother Sun, do you, as the director of the credit union, handle business personally?"

“Hey, what director or not, I’m just a brick in the credit union. I’ll be moved to whichever position is short-staffed.” He walked out of the business office, patted Li Zhe on the shoulder, and said, “Come on, let’s talk in my office.”

Seeing the lobby deserted, Li Zhe asked, "Brother Sun, hasn't the credit union officially started work yet?"

Sun Liguo explained, "It's just after the New Year, so there aren't many people doing business. Only a few people come to deposit or withdraw money or inquire about this year's loan policies. Two people on duty are enough. The others are still on rotation."

The two entered the office one after the other. Li Zhe put the net bag on the table and said, "Brother Sun, I bought some snacks from Beijing on my way back. I'll give you and the credit union staff a treat."

"You've gone to so much trouble again, please have a seat." Sun Liguo gestured for him to sit down. "Brother, what brings you here today?"

"Brother Sun, I'm here today to inquire about loan policies."

"Brother, you still need money?" Sun Liguo was both amused and exasperated. On the one hand, he knew that Li Zhe was making money selling vegetables, but on the other hand, Li Zhe had already borrowed more than 100,000 yuan from the credit union, and it would be difficult for him to get another loan.

"I'm not applying for a loan; I'm helping someone else get advice."

Li Zhe sat in the chair opposite: "As you know, last year about ten people followed me to grow vegetables in greenhouses. The earliest ones worked with me for almost half a year and learned the techniques. They also wanted to build their own vegetable greenhouses. But they didn't have much capital, so they wanted to take out a loan from the credit union like I did. Knowing that we have a good relationship, they asked me to come and ask."

"Brother, how many people under you need loans?"

"About ten."

"Brother, be honest with me, how confident are they of making money after they learn your techniques?" The loan amount for vegetable greenhouses is relatively high, and it's not a small amount for ten people.

Li Zhe thought for a moment before answering: "If they do it on their own, they have a 60-70% chance of making money; if I'm there to guide them, making money is a certainty, the only difference is how much."

Sun Liguo nodded. Li Zhe's willingness to help them inquire about loan policies already demonstrated his support. These people themselves worked in greenhouses, so they certainly had the skills to grow vegetables.

Moreover, Sun Liguo didn't care how much money they made, as long as they could repay the loan on time.

"Brother, how about this? Tomorrow, you gather all the people who want loans together, and I'll send a loan officer to the countryside to explain the loan policies directly to them. This way, you won't have to relay messages and take responsibility."

Li Zhe readily agreed: "Brother Sun, I'll do as you say."

"Then tomorrow morning, I'll have Xiao Zhang go to Daying Village. You're familiar with him too."

After finalizing this matter, Li Zhe brought up the issue of further expanding the greenhouse with Sun Liguo.

Before the Lunar New Year, Li Zhe borrowed 100,000 yuan from the credit union and added some money of his own, which was enough to build 20 vegetable greenhouses. However, due to the cold weather and the difficulty of construction, he only built ten vegetable greenhouses.

After the weather warms up, Li Zhe plans to continue expanding the remaining ten greenhouses. Before that, he will definitely need to contact the credit union to withdraw the remaining loan amount.

After the two reached an agreement, Li Zhe took a car back to Daying Village.

The truck was parked on the side of the road north of the village. Old Li heard the noise and rushed out.

Seeing that Old Li was dressed neatly, Li Zhe asked, "Dad, where are you going?"

"Didn't you order a batch of tables and chairs? Today's the due date, I'll go check on how the production is going. If the tables and chairs are all finished and work perfectly, I'll bring them back. They'll be delivered to your restaurant in Beijing tomorrow."

"Dad, get in the car, let's go together." After Li Zhe finished speaking, he waved to Lin Xiaohu and Li Zhiqiang and asked them to get into the back of the car.

Li Zhe and Lao Li sat in the passenger seat and led the way.

Old Li instructed, "When we get there, don't say anything yet. I'll negotiate the price with Old Yang. When I worked with him on the construction team, that old guy was very shrewd. There's definitely room for negotiation."

Driver Liang Weiguo asked curiously, "Uncle Li, since you knew he was asking for a high price, why didn't you try to negotiate with him at the beginning?"

Old Li replied, "If you lower the price too much at the beginning, this old guy will either not put in the effort or not use good materials. No matter how clever you are as an outsider, you can't outsmart an expert like him."

Old Yang lived in the neighboring village. The truck took a few turns and arrived, stopping outside a brick house.

Old Li stepped forward and knocked on the door. A woman in her fifties opened the door, holding a chubby little boy in her arms.

"Sister-in-law, is Brother Yang there?"

"Oh, it's Zhenhua. Old Yang is busy in the next yard. I'll take you there."

"No need, you take the child, we can go by ourselves. Hey, this child has such big eyes, he looks so clever." Old Li patted the little boy's head and said goodbye to the woman.

He took a few steps forward and said to Li Zhe beside him, "The old house next door also belongs to the Yang family, and it's used as a warehouse now. He's skilled, and his conditions in the village are among the best. Look how impressive this new house is."

Old Li went to the old courtyard next door and knocked on the door. An old man with a long beard opened the door, and after seeing Old Li, he turned around and walked inside: "Come in, I figured you should be here soon."

The yard was quite large, with a black tarpaulin covering the south side. Old Yang pointed to the brown square table under the tarpaulin: "These are the tables you ordered. There are 22 sets in total, all of them are ready. What do you think?"

"Uncle, thank you for your hard work." Li Zhe handed the other man a cigarette, then went over to check the tables and chairs.

He touched the tabletop; it was very smooth, probably sanded and then varnished. He pressed down on the table; the surface was flat, the four legs were level, and it was very sturdy without the slightest wobbling.

He sat in the chair and swayed back and forth; it was very stable, and the size and height were just right.

Lin Xiaohu and Li Zhiqiang, who were standing nearby, were also busy checking the tables and chairs one by one. If they found any loose tables or chairs, they could ask the other party to repair them in time.

After the inspection, Lao Li and Lao Yang finished their conversation and agreed to a further 10% discount on the original price.

Although the price was cheaper, Old Yang didn't show any dissatisfaction. He helped Li Zhe and the others load the tables and chairs onto the truck, then saw them off out of the yard and watched the truck drive away.

After getting into the car, Li Zhe asked with a smile, "Dad, how did you negotiate the price with him?"

“We’re building a new house next year, right? Your mother wants to get a new set of furniture, like two more cabinets, so you can use them when you get married. How could Old Yang not be happy to do something new? If he doesn’t give me a discount, I won’t even bother with him.”

With this batch of tables and chairs, the restaurant is one step closer to opening. Li Zhe is in a good mood: "Dad, aren't you afraid he'll cut corners again next year?"

"No way. We're all from neighboring villages, living not far apart. Our own furniture is right there. If he dares to cut corners, people from all around will know. Who would want him to make furniture? If his reputation is ruined, he won't be able to get any work."

After chatting for a few minutes, the truck returned to Daying Village. Li Zhe got out of the truck and said to Li Zhiqiang and Lin Xiaohu, "Qiangzi, Xiaohu, move two sets of tables and chairs down. Secure the rest of the tables and chairs; we'll transport them to Beijing tomorrow."

Old Li asked in confusion, "Second brother, why are there still two sets of tables and chairs left?"

Li Zhe replied, "The restaurant's first floor can probably accommodate 20 to 22 sets of tables and chairs. We'll set up 20 sets first, and the remaining two sets will depend on the situation. If there's enough space, those two sets will also be brought to Beijing; if the space is cramped and it affects the customers' dining experience, then those two sets won't be used and will serve as spares. This way, if the restaurant's tables and chairs break, we won't be unable to find replacements in a short time."

After getting off the bus, Li Zhe inspected the vegetable greenhouses and told everyone that the loan officer would be going to the village the next day.

……

The next morning

Everyone arrived earlier than usual and worked more diligently than usual.

At 10 a.m., loan officer Xiao Zhang arrived at Daying Village on his bicycle, and Lao Li warmly welcomed him into the greenhouse to rest.

Li Zhe also gathered the employees who wanted loans into the greenhouse, and arranged them into three rows with small stools.

Besides the employees working in the greenhouse, there are also Jin Baiwan and Wang Daqing, the son of Party Secretary Wang.

Once everyone had arrived, Li Zhe introduced, "This is Comrade Zhang Jinxue from our town's credit union. Today, he will be explaining this year's loan policies to everyone. Please welcome him!"

"Clap clap clap..." A round of applause rang out.

In the past, Zhang Jinxue had often gone to rural areas to explain loan policies, but most of the time he was met with disdain. This enthusiastic response was a first for him.

His enthusiasm was also aroused: "Folks, my name is Zhang Jinxue, and I'm a loan officer at the Wan'an Town Credit Cooperative. I'm here today to talk to you about loans. This year, our country's credit policy is different from before. This year's financial work focuses on implementing the spirit of the Third Plenary Session of the 13th CPC Central Committee, which is to tighten credit, stabilize finance, rectify order, and deepen financial reform..."

Zhang Jinxue spoke with great enthusiasm, but the audience below was completely confused.

Li Jiugang raised his hand and said, "Comrade Zhang Jinxue, we are all from the countryside and don't have much education. We recognize the individual characters you are using, but we can't understand them when they are put together."

"Hahaha..." This sparked a burst of laughter in the greenhouse.

Zhang Jinxue smiled somewhat awkwardly: "Okay, then I'll give a brief introduction. Ah... how should I put it, let's start with this interest-free loan."

Interest-free loans have been cancelled this year, and current loans do have interest. However, don't worry, as long as you plan the use of the loan reasonably, the profits can completely cover the interest.

Before granting a loan, we need to review and assess each applicant's specific circumstances. As long as you have good credit and the ability to repay, the loan application has a high chance of being approved…

Zhao Tiezhu and Zhang Jinxue were quite familiar with each other, and since Zhao was sitting in the front, he asked directly, "Comrade Zhang, what exactly is the loan interest rate? How is it calculated?"

Zhang Jinxue replied, "On February 1st, the bank's loan interest rates were just adjusted. The one-year loan rate is 11.34%, the two-year rate is 12.78%, the three-year rate is 14.4%, and the five-year rate is 19.26%."

Upon hearing the loan interest rate, the crowd inevitably engaged in another round of discussion.

"My goodness, how come the loan interest rate is so high?" Wang Xiuying exclaimed in surprise.

She and Lao Li had discussed it. They were both quite old and couldn't rely on their son for retirement; they still had to work. So they decided to apply for a loan from the credit union.

Both of her sons had previously taken out loans from the credit union, both interest-free. She originally thought that even with interest, it wouldn't be too high. Who would have thought the difference would be so huge?

Lin Xiaohu, standing to the side, also silently did the math. If it's a one-year repayment period, it's actually not too bad. A loan of 6000 would have an annual interest of over 600. The total repayment would be 6600.

他又算了一下5年期。一年的贷款利率将近20%。一年的利息将近1200，5年的利息将近6000。5年的总还款达到了12000。

"My goodness, this is like paying back another portion of the principal."

Everyone else was also calculating their own accounts.

Everyone knows that growing vegetables in greenhouses is profitable. But asking them to borrow so much money at such high interest rates is bound to make them hesitate.

Only the Malay boy sat there calmly and composed.

Besides Li Zhe, her family was the only one to benefit from the interest-free loan program.

The mindset regarding interest versus no interest is completely different. Furthermore, she also deposited the money in the bank to earn interest. The difference between these two situations is truly enormous.

She was glad she made the right choice, and at the same time, her admiration and gratitude for Li Zhe grew even stronger: "My brother-in-law is really amazing!"

Seeing everyone discussing it, Zhang Jinxue looked at Li Zhe with some helplessness.

Li Zhe clapped his hands and said, "Alright, everyone, quiet down. Ask your questions one by one. What's the point of you all fiddling around like that?"

Lin Xiaohu raised his hand and asked, "Comrade Zhang, why is the interest rate so high? Could you give us a discount?"

Zhang Jinxue replied, "I also want to give everyone a discount. But the interest rate is set by the bank, and I have no right to change it."

Furthermore, the bank's loan interest rates are related to its deposit interest rates. Current deposit interest rates are high, so loan interest rates can't be lower than deposit interest rates, don't you agree?

Li Zhiqiang frowned: "Comrade Zhang, a loan is a loan, and a deposit is a deposit; why can't the loan interest rate be lower than the deposit interest rate?"

In later generations, this will be considered common financial knowledge.

However, in those days, information was scarce, and many rural people lacked financial literacy.

Jin Baiwan, standing to the side, said, "Brother, this is easy to understand. If loan interest rates are lower than deposit interest rates, then I can borrow money from one bank and deposit it in another. I don't have to do anything and I'll make money, right? If everyone did it like that, then the banks would go bankrupt."

Zhang Jinxue nodded: "This guy is right, that's exactly what I mean."

Jin Baiwan smiled and said, "Comrade Zhang, I also took out an interest-free loan at the credit union two years ago. Can I still get a loan from the bank now? If so, are there any differences compared to everyone else?"

"Have you repaid your interest-free loan yet?"

"It hasn't been returned yet."

"In theory, you can get another loan in your situation, but whether your application will be approved depends on the specific circumstances, such as your recent credit assessment and the purpose of the loan application. We can discuss your situation separately later."

Lin Xiaohu, who was standing to the side, couldn't help but ask, "Boss Jin, you're a well-known wealthy man in our village with ten thousand yuan in savings. You don't lack money, so why do you need a loan?"

Jin Baiwan smiled and said, "Brother Lin, whether you need money or not and whether you take out a loan are two different things. They don't conflict."

Old Li and Wang Xiuying whispered to each other for a moment, and Old Li asked, "Comrade Zhang, I have two sons. The eldest and the second eldest both took out interest-free loans from our credit union last year, and my wife and I also want to take out a loan this year. Is it possible for us to do so?"

Zhang Jinxue was quite familiar with the Li family's situation and said, "Your situation is possible, but certain conditions need to be met. For example, you need to prove that you have a legal and stable income, the ability to repay the loan on time, and no bad credit record."

Old Li replied, "I have a stable income. I work in the greenhouse and get paid every month. My wife helps with cooking in the greenhouse and she also gets paid."

“In your case, we’ll need some supporting documentation, which I’ll explain in detail later.” Zhang Jinxue responded and continued, “Next, I’ll talk about the repayment methods, which usually come in three types:”
The first method is quarterly interest settlement: the 20th of the last month of each quarter is the interest settlement date, and the borrower must pay the full amount of interest for the quarter before the interest settlement date.

The second method is monthly interest settlement: a fixed date each month is the interest settlement date...

The third type is interest-only repayment: the loan principal and interest are repaid in a lump sum on the loan maturity date…

Zhang Jinxue explained everything very carefully, clarifying every detail of the loan process. He also met with each person individually to understand their situation and explain the necessary documents for the loan application…

Around noon, Zhang Jinxue explained the details of everyone's loan situation and prepared to take his leave.

Li Zhe wasn't about to let him leave, so he treated him to a feast of good wine and meat, and even gave him two packs of Daqianmen cigarettes before he left.

After seeing off loan officer Zhang Jinxue, everyone dispersed, leaving Li Zhe with Jin Baiwan. "Brother Jin, I'd like to ask you about something. Shall we sit in my greenhouse for a while?"

Jin Baiwan smiled and agreed, then followed Li Zhe into the greenhouse.

Li Zhe brewed a pot of tea for the other man. "Brother Jin, do you know there's a cannery in our town?"

“Yes, I know them. I dealt with them a couple of years ago. Back then, their factory made canned vegetables, and they sourced their produce locally. I bought the vegetables from the farmers and then resold them to the cannery.” Jin Baiwan took a sip of tea and continued.
"However, in the past two years, canned food sales have not been very good. Their production has dropped sharply, and they need less vegetables, so we haven't had any dealings with them since."

At this point, Jin Baiwan was also somewhat puzzled. Although both were related to vegetables, Li Zhe was growing off-season vegetables, and the supply couldn't meet the demand. The cannery, on the other hand, used high-yield, low-priced summer vegetables. The two were like parallel lines.

Li Zhe seemed to sense his question and did not hide anything, briefly explaining the Soviet procurement order.

After listening, Jin Baiwan remained silent for a while. "Brother Li, if I may ask, when did you meet this friend? Do you see each other often?"

Although Jin Baiwan asked the question subtly, Li Zhe could still sense his concern. "My friend owns a restaurant catering to foreigners, and her family members all work at the Ministry of Foreign Affairs. The vegetable shop I run near the diplomatic residence in Beijing is a shop belonging to a unit under the Ministry of Foreign Affairs, and I only managed to rent it through her connections."

Although we haven't known each other for very long, she has helped me a lot.

She has a very generous personality and never lets her friends suffer. I trust her quite a bit.

Li Zhe changed the subject: "Brother Jin, as you know, this kind of business is all about profit margin. When buying canned goods, you definitely have to compare prices from multiple suppliers and negotiate the price bit by bit."

My business in Beijing requires constant supervision, and I don't have the time or energy to keep a close eye on it all the time. So I'm looking for a partner. Brother Jin, I wonder if you'd be willing to work with me.”

Jin Baiwan rubbed his hands together. Although he had never done foreign trade orders before, he knew that this business would definitely be profitable if it went through.

He took a deep breath to calm himself down: "Brother, if we're going to team up, how much capital do you need me to contribute?"

Actually, it wasn't just Jin Baiwan who had this problem; when Li Zhegang first heard his second sister mention it, this was also the first thing that came to his mind.

It wasn't that he didn't trust his second sister. But matters like foreign trade orders involved multiple departments. Even if his second sister sincerely wanted to partner with Li Zhe, she couldn't guarantee 100% profitability. For example, the issue of payment collection wasn't something one department could accurately predict.

Li Zhe wanted to test the waters with a sum of money first, even if the money couldn't be recovered immediately, it wouldn't have a significant impact on him. If the repayment was timely, he would then increase his investment.

"For the first acquisition order, I plan to take around 30,000 yuan. My friend might also contribute some money, so you can take as much as you want." Actually, Li Zhe didn't care how much money Jin Baiwan contributed, because he valued Jin Baiwan's personal abilities. He also needed such an assistant by his side.

At the same time, doing so can indirectly share some of the risks.

Jin Baiwan thought for a moment, "Brother, I'd be more than happy to partner with you in business. But all the money at home is with my wife. I need to go back and discuss with her how much I can invest. I'll get back to you tomorrow."

Li Zhe smiled and said, "Brother Jin, you don't need to rush about the investment amount. The 3 investment I mentioned is just a rough estimate, it's just my current idea."

We can proceed step by step. First, let's investigate the market conditions for canned goods. Once my friend has found out the exact purchase price of canned goods, we'll see how much profit the business can generate.

After considering all factors, if this business is promising, we will increase our investment.

If you think the risk is too high, let's test the waters with a smaller amount of money.

Jin Baiwan nodded, agreeing with Li Zhe's idea: "Alright. Let's go to the Wan'an Town cannery tomorrow."

I've had some dealings with their deputy factory director a few times, and it's been a while since I last saw him. I'll arrange to have dinner with him tomorrow.

(End of this chapter)