Hans and Julia are discussing the possibilities of raising money for extending transport business.
HANS: My transport business in Greece is showing a good profit, I have done rather well in my first year and now I want to expand my business and to set up a limited company in the UK. The problem is I haven't had time to build up any reserves.
JULIA: Do you have to be so dependent on external finance? Can't you finance part of your expansion internally? You said the family business was worth half a million. Can't you get any more out of it? Sell some property? Move some of your assets over here as collateral. Why not get some members of your family in as shareholders?
HANS: I'm afraid that would not be acceptable. I together with my partner, I mean Andrew and I, we want to be independent of the Greek company. We want to raise nearly £250,000 altogether, and the bank manager is not sure that we can finance such a large sum.
JULIA: Maybe you should agree on equal representation of German and Greek shareholders and in this case you can ask the bank for a short-term loan. I mean a loan from a Greek bank. You can also offer your Greek assets as security for a loan.
HANS: Oh! Well, I'm not sure we can fix it. I need a loan from a UK bank. Maybe some of my trucks, which at the moment are registered in Greece, could be re-registered in the UK? Do you think that might persuade them?
JULIA: You see, you want to raise nearly £ 250,000 altogether, and your share capital will amount to only £40,000 and it is not always easy for a bank to take a charge over property in another country, to say nothing of the fact that the shareholders may object.
HANS: I see, you mean 'a bird in the hand is worth two in the bush'. Maybe you are right and I had better just keep on my family business.