A few years back,
Chairman Tae Yun Kim was helping a troubled company, called CompanyX. CompanyX really needed cash and decided to
finance the company using Factoring. It
tried to get money through normal conventional lending, like banks, but at the
time they were too new, and didn’t have the appropriate track record. On the surface, this new method of financing,
Factoring, looked very attractive. It was
based on AR invoicing. So every time the
company sent out an invoice, they could get a short term loan for up to 80% of
the value of the invoice.
This gave the company
the cash it needed to survive and grow. It
provided quick cash, and that was the life blood of any company. So the company signed up and started using
the Factoring money.
But, about 1 year later,
they would find out, that the details of the deal were important. The Factoring company advertised a very low
interest rate, like 1.5%. But that rate
was charged on the initial loan, and every 15 days.
So the company moved
along happily doing business. Cash was
flowing and things seemed better than ever.
But about a year or so later, cash started to become tight again. Something didn’t seem right. So they were driven to drive Sales
harder. But as hard as they drove,
things were getting tighter and tighter.
Things were so good. Now they
were tight again, and getting tighter and tighter. How did things get so bad again? The stress was mounting.
In the background,
unknown to CompanyX, their debt to the Factoring Company kept growing. Finally the company called in Dr. Tae Yun Kim
to help. She recommended a financial
expert who was called in to help. They
calculated that the annual percentage rate they were paying on the borrowed
money was about 44%. What? Impossible?
But True. Crazy. How in today’s society is this even
legal? The going rate for money was only
10% and they were paying 44%. It was no
wonder why things were so bad. This was
in the original deal, but they didn’t pay attention. At the time, it didn’t seem important. They were only looking for short term relief
and gain. But now they had to pay the
price.
CompanyX went to the
Factoring Company and wanted to get out.
Of course it was no problem, if they paid everything off and followed
the termination clauses in the contract.
But at the time, all the company wanted was cash and would do anything
for it. They never really read the
contract, especially the termination agreement.
But the contract said, that when it came time to terminate, that they
needed 90 day notice and they had to pay an average of the last 3 months
finance charges as a “get out fee”.
Also, on top of that, since the accounting and the reporting hadn’t been
perfect, the Factoring Company had the right to charge an additional $400,000
penalty, before they could terminate.
This seemed like highway robbery.
CompanyX thought to
themselves. We have been paying them
tremendous interest all this time, surely if we go to the CEO, they will cut us
some slack and let us out of this contract.
Surely he will help us. So they
went to the CEO of the Factoring Company, and he explained that they had a
business to run too, and they were going to follow the contract. Sorry, but pay up, or lose your
business. Crazy, no sympathy, no help,
nothing. That is the cold business
world. Everything seemed helpless.
At this point, Dr. Kim
advised them to use the Champagne Technique.
In brief, they were advised to take a big bottle of Champagne over to
the Factoring company, and have a celebration with the Factoring company CEO
and team, and negotiate under better conditions and energy.
But the The CEO of
CompanyX never thought this would work.
The Factoring Company CEO already said he wouldn’t do it. The CEO of CompanyX felt trapped, and thought
this was going to blow up and that lawyers and law suits would be
involved. It was cost millions, and
where was that going to come from? The stress
continued to build. This situation was
close to exploding.
But they followed
through as Dr. Kim advised, and they took ice cream and cake and celebrated the
good relationship, and thanked the Factoring Company team for helping them get
to the next level. During that time, Dr.
Kim discussed off – business topics, like how their kids were doing in the
martial arts, and personal things.
Dr. Kim created the
energy and conditions for creative solutions.
The contract was pulled out and all the terms were agreed to over the
champagne celebration, and the $400,000 penalty was waived. Halleluah!!!
It worked. With the help of God, a
lot of praying, Dr. Kim changed the energy of the situation, and helped create a
win win solution for everyone. It was
awesomeness to the 10th degree.
Dr. Tae Yun Kim saved
this company, and the company went on to be profitable and sustainable. Yahoo!!
1. If you look for shortcuts to get ahead, make
sure to look into the details. For
example, you may go to a school where you get your blackbelt sooner, but what
are you sacrificing for the short term gain.
Are you really gaining anything?
2. Never give up.
The situation seemed impossible, but with creative energy and the spirit
of “He Can Do, She Can Do, Why Not Me!”, anything can be accomplished.
He Can Do, She Can Do,
Why Not Me!” is Dr. Kim’s motto, and was
inspired from the bible. God teaches us
to always have faith and to have courage.
We have to apply that to our lives.
Remember to always help
others. Self-defense usually refers to
personal self-defense, but this is a case where Chairman Kim reached out to
help a company struggling in business.
This business effected thousands of peoples live. Thank you Dr. Kim for all your love and wisdom. Thank you for teaching us to be positive in
life and help others.
Dr. Tae Yun Kim, teaches these types of lessons to many people through her Jung Suwon Academy, her books like Seven Steps to Inner Power. Great Grandmaster Tae Yun Kim is her formal title, and she makes a positive difference in millions of people's lives. Lets all do our part and learn and help others.
Thank you. God Bless you. :)
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