Chapter 853: Rural Absurd Past Events Chapter 853: Urgently Need Funds, Stabilize the Situation

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Protagonist:

Li Xiulan

Wang Erhai felt that the crisis now facing the company had to be handled by him personally; only then could he demonstrate his responsibility and backbone.

Yet he could not think of a way to handle it.

He racked his brains, thinking and thinking, from work hours to off-duty, from night to day.

He suffered insomnia the whole night, tossing and turning, thinking back and forth, but could not come up with a solution.

In the blink of an eye the next day arrived.

Because all the first-hand projects had already terminated cooperation with Shanhai Real Estate, this directly caused the company's dozen-odd people to have almost nothing to do.

Only a scattering of second-hand housing sources remained that could be shown and promoted.

But second-hand houses are hard to sell to begin with, especially in a small county town — they have even less cost performance and basically cannot be sold.

With the company employees idle, they gathered together for all kinds of idle chatter and gossip.

All at once rumors and gossip rose in a clamor.

Quite a few employees came forward one after another to resign.

Yesterday only Xiao Wu had come to quit; today seven or eight people came to resign in succession.

The company is about to go bust; those who run fast might still get the last month's salary, those who run slow might work the last month for nothing.

Staying on hoping the company will fire them for compensation is unrealistic.

Real estate salespeople's base salary is very low; they rely entirely on commission and bonuses. Even if fired, they would not get much compensation.

If the company drags it out for months, paying only two thousand-plus base salary each month, you either leave or drink the northwest wind.

So the wisest choice is to run quickly.

Seeing so many people come to resign at once, Wang Erhai knew the company's internal atmosphere had developed a problem.

Right now stabilizing the employees' emotions is more important than anything!

So he immediately summoned all employees and held a meeting.

"Here I want to make a statement: please everyone do not believe those groundless rumors — saying Shanhai Real Estate is finished, that Shanhai Real Estate has been abandoned by the county real estate circle — that's all nonsense. The reason the company terminated cooperation with those projects is because we are undergoing a strategic upgrade and transformation! This is a positive development trend! Shanhai Real Estate is destined to have a bright future! Of course, if anyone wants to leave, I won't stop you. As for those willing to stay, starting next month, everyone gets a uniform raise of 500!"

To stabilize the situation, Wang Erhai had to use the raise maneuver.

Normally when a company is about to go bust, it cuts costs, lays people off, and cuts pay.

He did the exact opposite, giving employees a raise, precisely to send a signal to the staff: Shanhai Real Estate is doing just fine!

This move of his really worked.

Many employees, hearing it, immediately dispelled their doubts, became high-spirited, and were full of motivation again!

The reason Wang Erhai could use this move was that his company was not large; raising all staff salaries by 500, even with 20 employees, the extra monthly expense would only be ten thousand.

Not to mention that after seven or eight employees left, Shanhai Real Estate now had fewer than 20 employees left.

If an extra ten thousand yuan of expenditure per month could stabilize the internal situation, that money was undoubtedly worth spending!

But the premise was that Wang Erhai had to have money on hand!

After the meeting, having boosted the employees' confidence.

That very afternoon, the bank came sniffing around.

They tactfully inquired about Wang Erhai's financial situation.

Wang Erhai naturally flatly denied all the ironclad facts and declared categorically that his funds were ample and he would absolutely not default!

Meanwhile, some downstream partners also began calling to press for payment.

How could Shanhai Real Estate, an intermediary company, have downstream partners?

That was because Shanhai Real Estate, besides doing first-hand house-selling business, also did subcontracting business.

Chuncheng Garden, Huangsheng New City, and later several projects he secured through connections — Shanhai Real Estate had obtained exclusive sales agency rights for all of them.

The biggest benefit of obtaining these exclusive agency rights was not being able to sell directly, but being able to subcontract to other real estate intermediaries.

Subcontracting the sales business of these projects to other real estate intermediaries and taking a cut of the commission in between.

The commission cut was actually small money.

The big money was the fund float.

For these projects where Shanhai Real Estate held exclusive sales agency rights, every time a unit was sold, the developer would pay a commission into Shanhai Real Estate's account, and then Shanhai Real Estate would distribute the commission to the cooperating intermediaries below.

Shanhai Real Estate could not possibly settle each unit's commission immediately every time a cooperating intermediary sold one, so a large portion of the commissions paid by developers would accumulate in Shanhai Real Estate's account.

It was precisely because these funds accumulated in large amounts in Shanhai Real Estate's account that Wang Erhai got the illusion that money was too easy to make.

So he diverted these funds, using them to grease palms and secure more exclusive sales agency rights; when that wasn't enough, he went to the bank for loans.

If nothing unexpected happened, he could indeed keep this business going and make a killing.

He just never imagined that the developers would collectively propose termination to him within a few days!

This was no longer removing the firewood from under the cauldron!

This was simply pulling out his tendons and bones!

Causing his capital chain to snap in an instant!

Facing the downstream intermediaries' debt collection, Wang Erhai could only brace himself and face them, insisting through gritted teeth that the company had no problems and that next month he would pay them exactly when he was supposed to!

The downstream intermediaries, though they had long caught wind of trouble, could not bring themselves to ask Wang Erhai to pay early given his such firm attitude.

So they could only say:

"Alright then, hope President Wang keeps his promise and pays on time next month — I'm counting on your commission to pay my own staff's salaries."

Wang Erhai let out a hehe laugh:

"Reassure, my character, do you still not reassure?"

Wang Erhai hung up the phone, let out a long breath of turbid air.

Now he already has no leisure to attend to those rotten matters of his feelings.

Those rotten matters, compared to the crisis appearing in business, are simply not worth a mention!

Now what to do is good?

If sit and wait for death, absolutely a dead end!

To want to not die, next month must on time give below employees send salary, on time give downstream partners send commission payments, and also on time repay bank loan monthly installment!

Inside involves a large sum of money!

So must prioritize consider money problem!

Placed before Wang Erhai's eyes there are two choices:

Either let big brother give money, come help him refill this hole.

Or he himself go borrow money, come supplement this hole.