Chapter 188 - Chapter 188: The Granville Family's Plight
"Do you want me to help?"
Elizabeth asked, and Natalia nodded.
Then, she began explaining the background of why she had come here.
"The Granville family holds a knightly title, but we started running a construction firm during the building boom of the past few years. Things went smoothly up to a point, but payments from the main contractor, Cavendish Construction, became frequently delayed, and that caused our cash flow to deteriorate. If this continues, we won't be able to make payments, we won't be able to repay our debts, and our family will go bankrupt. We have work and accounts receivable, yet... I thought perhaps you could do something about it..."
It was not just the Granville knightly family, Natalia's home; in the past few years, nobles without land holdings had begun venturing into business. There was also the meaning of countering the improved financial situation of nobles who did hold land, but the domestic economy, boiling with prosperity, was an environment where many businesses could earn very easily. That is why there was a boom in entrepreneurship among the nobility, just as Baron Fleming had done.
And the Granville knightly family had set their sights on the building boom and opened a construction firm.
In regions where harvest yields increased thanks to Steve's ideas, the land became filled with people unable to engage in agriculture. As these people flowed into the cities, the number of workers other than agricultural laborers increased, and this caused a rise in demand for housing.
What occurred then was a building boom. This is not a bubble because there is actual demand to back it.
And so, many young people aim for the great metropolis, the Royal Capital.
And thus, Granville Construction also received these benefits and was handling work smoothly. The main contractor was a company called Cavendish Construction, run by Marquess Cavendish.
Marquess Cavendish held the position of Chairman of the Royal Capital Urban Redevelopment Committee, and he did as he pleased, privatizing public works and handling building permits arbitrarily.
That is precisely why there was profit in it, and many construction firms became subcontractors.
Furthermore, the construction industry in the Kingdom of Cascade operated on a basic system of payment after completion. The client receives a report of completion from the contractor, and only after confirming it do they pay the money.
In other words, the costs for purchasing construction materials and labor expenses come out first.
In Japan, this would be managed through promissory notes, but in the Kingdom of Cascade, it had become common to manage cash flow through loans from banks.
And Granville Construction's work was 100% orders from Cavendish Construction; if payments from there were delayed, there was no other source of incoming funds.
And Cavendish Construction sometimes intentionally delayed payments through subcontractor bullying. While there were payments from clients for the work Granville Construction had handled, Cavendish Construction had not paid some of the subcontractors.
Because the other party was a company run by a Marquess, and because there was no other work available, Granville Construction was in a situation where they could not push back strongly.
Natalia, knowing the circumstances of her home, had pinned a slender hope on the Economic Revolution Club, which had saved Fleming Trading Company.
Hearing that story, Michael was the first to speak.
"Even if that story is true, even if we manage to get through the immediate cash flow crisis, the same thing could happen next time. And we do not have the power to guide Marquess Cavendish."
"Besides, we need to verify the truth behind Miss Granville's story as well."
Arthur said that, and Natalia fell into deep despondency.
Natalia was speaking the truth, but Arthur was not so naive as to believe her without reservation.
At this stage, only Natalia knows that her story is true. She did not say it, but Isabella and the others shared the same thought.
Though Natalia was despairing, someone reached out a hand to her.
"If it is my fiancé, surely this level of problem can be resolved without difficulty? Leave it to me."
Those words were spoken by Lilia.
Isabella immediately latched onto that remark.
"Wait a minute, you're an outsider! What are you doing acting so presumptuously?"
"No, I came here intending to join. I am joining right now."
The two women's gazes clashed, sparks flying.
Arthur sighed and stopped the two of them again.