Chapter 2

I spoke to the newly-made Lieutenant of the Corps of Engineers, Jeff, shortly after the call to the professor. He took my idea calmly, but surprised me with his answer.

“Commander, I’m with you, what’s there to talk about? As much new hardware as I’ve seen and touched in the last few months with you, I’ve never seen before in my life. And not only did I see it, but I thoughtfully looked into it, and then I tested it in combat. This is a dream, not a service! And something tells me there’ll be no problem with such things in your new firm. Just talk to the director of the Academy. I owe him a lot. They wouldn’t have made me lieutenant without him. I’m supposed to have taken an individual training course at the Academy. Although why „supposed”, if I’m talking to my instructor now,” the Lieutenant smiled, “Yeah, and I wouldn’t want to leave the army now, when I’ve just become an officer.”

“All right, Jeff. I’ll talk to the Lieutenant General, I think we can find a way that works for everyone, and then I’ll contact you again.”

Lieutenant General Schiller left me his personal contact, sending me to the capital for an award, so now I could go straight to him.

The director of the Academy didn’t respond to the call, but he called back 20 minutes later.

“So, Second Lieutenant, congratulations on the Federation Award, the new rank, and the Staff Academy. Don’t stand at attention, the call isn’t official. And put aside ranks.”

“Thank you for your help. All of this is largely due to you.”

“I watched the awards broadcast. What were you talking to the President about for a minute? General Gallo nearly burst on the spot from such a breach of protocol,” Schiller grinned.

“That’s what I wanted to talk to you about. Please, look at this document,” I sent the General a copy of the recommendation signed by President Tobolsky.

“You’re such a dodger, Lavroff. How do you get those papers?” a minute later, the general laughed. “First Admiral Petrov, now Mr President himself… You just have the talent to be in the right place at the right time with the right words. And what do you want from me?”

“I need a chief engineer. A talented technician familiar with weapons specifics. You’ve got one of those.”

“I’m not giving Jeff away. So far, everything you’ve done has been good for the Academy. Now you want to steal my best tech?”

“No, I don’t. He wouldn’t leave the service himself, much less you.”

“What do you want then?” – the General was surprised.

“I want a mutually beneficial partnership with the Planetary Commando Academy. You can send Lieutenant Jeff to my company as a military advisor or just a consultant, after all. At my official invitation, of course. To insure the cooperation of weapons developers with the army and to make certain that the needs of troops are most fully taken into account in the development of new equipment. I need a talented technician. So do you. His qualifications will only increase in my company, and the Academy through him will have access to the latest developments of my company, which are just being tested. And, of course, I’ll only have him spending just a part of his time, so he’ll be able also to perform his duties at the Academy, albeit in a somewhat reduced form.”

“You’re not just a dodger, Second Lieutenant,” – the general laughed, “You are a Super Dodger. And the invitation to Jeff, I suspect you’ve already prepared?”

“I’m sending it to you.”

* * *

On May 15th I, that is Igor Lavroff, celebrated his seventeenth birthday. Inga was sent for a whole month along with all the freshmen of the Academy to some incredible wilderness for another training, so I couldn’t see her. I ended up celebrating my 17th birthday at home with my mom. Anyway, I was going to move her to Earth, so I thought I’d mix business with a little pleasure. She was a little shocked to find herself the sole owner of the Lavroff Weapons Company, but that’s just a little bit. She’s already getting used to her son’s quirks.

“What am I going to do in the capital, son?” – Mother asked me after she had feasted her eyes upon me and asked me all the usual questions after a long time apart, “This is where I teach the kids, and I like my job. We have a friendly team, an habitual comfortable environment. And what’s gonna happen there?”

“And there, Mother, will be the last place the quargs will go if we can’t stop them. The capital of the Federation will be defended to the fullest extent possible.”

“You’re saying terrible things.”

“Unfortunately, I am personally familiar with these terrible things. They don’t release all the information online to avoid causing panic in the colonies. Right now, the quargs can break anywhere. And as for what you do in the capital, there are also children and elementary schools. You yourself once asked me to move to the Earth.”

“I was just trying to talk you out of the idea of becoming a professional military officer,” my mother said quietly, “and I was ready to go anywhere for it. I was afraid of losing you.”

“And now I’m afraid of losing you. I can’t work in peace knowing that you’re in danger.”

Mother smiled sadly.

“When are we going?”

* * *

I have carefully read a document that was the product of a collaboration between Leo Rabinovich, Jeff and Professor Stein. The title of the document began with the words „Cost plan”. Tha’d be okay, a beautiful document, Rabinovich turned out to be a master at these things, but the amount in the line ‘Total’ has put my hair on end in all places. 820,000,000 rubles. I could only imagine this sum in the abstract.

The worst part was that even with the most biased approach, I found a way to cut costs by only ten percent, and only by postponing some of the bills when they had a chance to be compensated by the expected revenue from the company’s activities.

There’s no money, but you hold on! Some of the ancient politicians on Earth said this immortal phrase. My memory has not retained his last name, apparently for the utter uselessness of this individual.

“Gentlemen,” I looked up to my comrades, “this is a wonderful plan. But only 30,000,000 rubles are available. We won’t even be able to pay advances to the equipment suppliers, I say nothing about everything else.”

“You can try leasing equipment,” Rabinovich suggested. “This would increase the total by about 10 per cent, but would cut investment by half at the start. But a lot depends on the business reputation of the firm and its owners. How’s that working out for you, Igor?”

“I’m afraid that won’t do. Although, probably the President’s signed license recommendation could help?”

“It’s hard to say. You have to try. Although the document certainly inspires respect. But it’ll still need a business plan with a forecast of the company’s financial flows, a production schedule, justification of the sources of lease payments, and a bunch of mandatory sections up to the background and experience of company executives.”

“Even if we can pull this off, we still need to get somewhere almost 400 million more,” I voiced my doubts.

“Well, either you have to attract an outside investor, and he, if he gives us the money, is bound to want to be a part owner of the company, or you have to go to the bank for a loan which is about as complex as leasing.”

“No, let’s try to do without co-owners. This can lead to management problems. All I need is a conflict between shareholders. Prepare the documents, Leo. Tomorrow we’ll try our luck at the Federal War Bank. The defense industry enterprises receive credits from this bank, so our subject matter should be close enough, and they have their own leasing company.”

* * *

“Good afternoon, gentlemen. My name is Ilya. I’m the manager of our bank’s new clients. How can I help you?” greeted us from the screen of my tablet a short and very thin young man, apparently a small clerk, the main task of whom was to meet first-time clients. It was some kind of filter that was needed to keep nonentities from bothering serious people.

“Good afternoon,” answered for us Rabinovich and presented us all. “We represent the Lavroff Weapons Company: development and manufacture of weapons and military equipment.

“I’ve never heard of your company before. How long have you been in this market?”

“Our company has just received a state license for this activity.”

“And what services do you need from our bank?”

“Equipment leasing and working capital replenishment credit. Also your bank account, of course.”

“Well, please send me your package of documents.”

For ten minutes, the clerk looked at the files he had been given. We waited patiently.

“What can I say, gentlemen,” has he finally said,“your company is new, has not yet started and has no experience of successful work in the chosen field. That is a negative, and a very significant one. Your own funds account for only four percent of the loan and lease amounts requested. That’s not good either. The sources of repayment of credit and lease payments cannot be considered reliable. If you’d already had contracts with the Ministry of Defense already, it would have been different, after all, you may not win the contest. Those are the downsides. Now, the upsides. You have a very serious license, which means the government thinks your company is well-off and capable of conducting your chosen activities. Besides, you have positive results of combat tests of some of your models, these documents are not standard actually, but this is something. And one last plus: your company has a distinguished scientist and a team of qualified engineers and researchers. All together, the picture is quite contradictory. I’m afraid we won’t be able to provide you with the amounts you’ve asked for.”

“Are there any additional factors that could affect the bank’s decision?” – I entered into the negotiations.

“Of course. For example, the presence of strong guarantors or a quality collateral whose value exceeds the amount of credit requested.”

“Will copyright be a good collateral?”

“This depends on the case and, above all, the amount of royalties in recent months. What do you have to offer?”

“The patent on the treatment of asteroid fever. I’ve sent you the file.”

The manager examined the document for a while and then gave a thoughtful speech:

“Not a bad asset. Of course, it requires a professional appraisal, but I think it’s worth around 200 million. That’s if it’s as a whole. Your share in it is twenty percent… Well, you can get 30 million with this collateral. But as you can see, it doesn’t change the situation. Is there anything else?”

“The shares of our company. Given the license, do they have any value as collateral?”

“Unfortunately, it’s an illiquid asset. Your shares are not listed on the exchange, so I don’t think the bank will be interested in them.”

“Tell us, Ilya,” Rabinovich has decided to lay down our last trump card,“Have you carefully read the documents relating to our license?”

“Well, I looked at them. They all fit the bill.”

“Please note who has signed the license recommendation.”

The manager found the document and went into the reading. This time, he looked up to us almost immediately.

“It’s very unusual, gentlemen,” he spoke with doubt in his voice,“from the point of view of the regulations approved by the bank’s board of directors, the identity of the signatory is not a significant factor. But your case is clearly out of line. I’m going to have to submit your application to the director of our branch. He will contact you shortly.”