Chapter 143: Consultant of HD Security Company

A company's ability to compete with banks is evident in cases like Laoganma: a privately-held firm that pays in cash, never defaults, and holds billions in reserves. Such a company, with low debt and substantial cash flow, poses a minimal loan risk and attracts banks eager to lend.

Banks are not charities; their primary goal is profit. They are more inclined to lend to wealthy clients, hoping to benefit from their financial activities. Conversely, they avoid lending to those with less stability due to repayment risks.

The next day, Andy began receiving loan offers from various banks.

The First National Bank of New York proposed a $2 million loan with a 0.3% interest reduction, contingent on HD Airlines channeling its financial business through them. Andy chose to decline this offer.

Citibank of New York offered a $3 million loan with a 0.5% interest reduction, provided that HD Airlines' cash flow was managed through their bank. While this was within the range they had discussed, Andy and Hardy aimed for better terms.

The Bank of New York Mellon and the First National Bank of San Francisco made offers similar to Citibank's. Bank of America's proposal was slightly better, including a 0.6% interest reduction and a security contract with their Los Angeles branch. Andy and Hardy considered Bank of America as a strong candidate.

Unexpectedly, Wells Fargo sent Henry Wells, the Vice President, to meet Hardy.

"Hello, Mr. Hardy," Wells began. "I'm Henry Wells from Wells Fargo Bank. We'd like to discuss a potential loan."

"Of course, Mr. Wells. What are the details?" Hardy invited him to sit.

"Wells Fargo is prepared to offer a $4 million loan with a 1% interest reduction," Wells explained. "However, we would like all of HD Airlines' financial operations and cash flow to be managed through Wells Fargo."

Hardy glanced at Andy. Andy had mentioned that a 1% interest reduction was highly unusual, yet here was Wells Fargo offering just that.

Wells continued, "We understand that a 1% reduction means the bank would make almost no profit. However, our goal is to establish a strategic partnership with HD Group. Your various enterprises—Walsh Mining, Playboy Magazine, Barbie Toy Factory, MEBO TV Factory, and Rocky Mountain Mineral Water—represent significant potential. We believe a strategic partnership could be mutually beneficial."

Hardy recognized that Wells Fargo was trying to secure a valuable client. Although currently a local bank, Wells Fargo had a solid reputation and wanted to build a strong relationship with him.

"Alright, I agree to the terms," Hardy decided.

Wells was pleasantly surprised by Hardy's quick decision. He shook Hardy's hand, expressing his gratitude. "Thank you for your trust in Wells Fargo. We will ensure you receive top-notch service."

Henry Wells then met with Andy, who would be the main contact for future dealings with Wells Fargo.

With the loan agreement settled, Hardy announced the establishment of HD Airlines and initiated the recruitment process for its management team.

Hardy then flew to Detroit with Lanster and Henry to meet General Knudsen. The old general, preparing for a fishing trip, welcomed them warmly.

After a friendly fishing session, Hardy and Knudsen discussed the future of HD Security.

Hardy outlined his vision: "Security companies typically focus on bank security, large corporations, and asset protection. However, I see broader opportunities. We could expand into police support, provide security for celebrities, manage prison security, offer services to federal agencies, and even form a mercenary group for international conflicts."

The old general was impressed, particularly by Hardy's innovative ideas. Although some concepts were new to him, he recognized their potential.

A couple of days later, General Williams informed Hardy that General Knudsen was pleased with Hardy's vision and agreed to become an HD Security consultant. Lanster traveled to Detroit to finalize the consulting contract.

With General Knudsen joining the team, HD Security gained a valuable ally and expert advisor.