SL International Business

Every great problem, possesses in itself as great of an opportunity, you just have to see it. Same holds true for the new LL Policy regarding virtual banks. The irony is that LL tells they are not sticking their nose where it does not belong, but that is exactly what they are doing, and completely disregarding that they could be a common carrier.

Furthermore, let’s breakdown the immediate and long term effects for SLIB due to the new policy imposed.
The juicy bits are in the bottom of this posting, what we are going to do.

Also, i urge you to remain calm as we work through the worst waves of the new policy.

SLIB Will Transform - SLIB will be gone, but only the name, not the business
There i said it, SLIB will be no more. However, when i said that What i Mean is, That we will change our Name, not closing doors.
We are not anymore a bank, banks are banned, so a name change is being called upon as. New name is still unknown, however, loosing the brand name is a great asset loss, thus we are going to be as minimalistic on the name change as possible.

Withdrawals will continue - Shortly
withdrawals are currently being throttled mostly, to ensure future viability and 100% capability to return client funds. Don’t kill a milking cow, meaning, we should not liquidate our businesses to honor our liabilities, just because people want it this second, and cannot wait for the moment we can honor without a great deal of sacrifice and collateral damage. Think about all the people who loan from SLIB, or all the people who rent from SLIB, or Mainostaulu advertisers. And think about the profits we are making, and the assets we hold. We Can Honor 100%, just do not expect miracles, and us to have 200% funds. Every bank works on fractional reserve, doing short term and long term investments. SLIB has mostly long term investments, that means, we have a reserve but most assets are tied into long term yield.

To honor, at this moment, 100% for everyone, would mean we would need approximaltey 190-198% of the client funds. From which 100% is in use, and 90-98% is the reserves. That would be a great waste of money to have double assets, from which half is 100% unused.

Furthermore, giving EVERY L$ we have in possession right now, would ensure that only a fraction gets their money - Tiers would go unpaid, causing heavy loss of assets. Ask yourself, do you want us to loose 80% of assets in order to cover 10% today? Or do you want us to loose 20% caused by the panic, and cover 100% eventually?

Withdrawal Exceptions - We won’t do it, don’t expect it
Yes, we cannot do an exception for everyone, furthermore, IM’ng any one of us with “I want to close my account”, “I want to withdraw 300L$ or i will sue you”, will do MORE DAMAGE than help you. Each one of you who does that, will be put on lowest priority.

Ask for exception - You are going make your chances even worse. Yes, it’s harsh, but it’s also harsh to threaten us, and demanding us to kill ourselves for your benefit. Remember, SLIB has 4 estates, those are non-mobile, unliquidable fast assets. Also, stocks are to a very high degree unliquidable. Should we sell Mainostaulu for 50% of what it’s worth so you could get your money today? Or get the profit from Mainostaulu and use that to pay withdrawals?

Most stocks are non-liquidable
Major part of SLIB’s assets are stocks, they are at the moment unliquidable, and some has been so. For example, we cannot liquidate Mainostaulu stock we have, which represents approx 3,000,000L$ of our assets.

Assets, Assets, Assets
While SLIB has a great degree of assets, a lot of these simply cannot be liquidated, the above mentioned are two main factors but also equipment is very non-liquid. Most long term investments are like that, they cannot be liquidated for a sensible amount of money, in a fast rate.

How much do we have liquid then?
Here is the easy liquid amounts approximately:

• 895,000L$ on hand
• ~2,500,000L$ mainland holdings
• ~1,150,000L$ savings on other banks
• ~1,400,000L$ on term deposits on other banks (because banking is closed, some atleast are doing exceptions)

Those are the assets of most liquid form right now, totaling to roughly 5,945,000L$.

How much are we profitting exactly?

Mainostaulu makes roughly an average 90,000L$ of profit each month.
SLIB Real Estate mainland sales are making an rough average of 270,000L$ monthly profit.
Estates are making an average profit of 100,000L$ to 125,000L$ monthly.
Kauppa, the newest addition, is already making roughly 10,000L$ monthly profits.
Rentals are making a roughly estimated profit of 50,000 to 65,000L$ monthly profits.
Mortgages are making a great deal of profit also.

That means, we are currently making a total of approximate 560,000L$ of profit each month.
Folks, that’s AFTER expenses.

And yes, we lost the BULK of our revenues last night. This used to be a far greater number.
Fortunately, that means we don’t have the bulk of costs neither. Some things remain to be arranged, as we cannot give anymore dividends on Mainostaulu and Kauppa. How do we arrange that, shall remain to be seen.

Possible schedule for 100% Refunds
Assuming everyone wants all of their money out, and we do not liquidate long term investments, this will mean longer time for 100% refund.

Long term investments: These were never intended to be liquidated in a rapid rate, thus, they will take a loss when sold. That is estates, most of stocks, some equipment etc.

This is mostly worst case scenario, and in practice will mostly happen differently. It’s actually very UNLIKELY there is need for 100% client funds refund. Also, i did not count in the frozen accounts, personal / small business loans owed to us, those who have left SL etc. There is approximately 900,000L$ alone in frozen accounts.

We can cover shortly an approximate, assuming close to 100% refund from other banks 3,000,000L$ MORE. That’s approximated.
That leaves us with 9,600,000L$ roughly to be paid back.
After a while, we should get approximately atleast 1,500,000L$ from rapid rate liquidation of stocks we can liquidate.
Selling the bot platform (Kind of only equipment we can liquidate at this point) we could get upto 405,000L$, but for the sake of being cautious let’s say 200,000L$.
Now we are at the point of 7,900,000L$ of client funds remaining, with all real estate assets intact and profitable.
On fast rate, we could get 4,000USD from our estates, giving us approx 1,080,000L$ (let’s round to 1.1mil)
Leaving 6,800,000L$ of client funds
Mortgages will give us by this time approx 150,000L$, leaving about 50,000L$ of them. Also, this is probably end of month 2 already. Meaning around 1,300,000L$ of profit from businesses.
5,350,000L$ of client funds left to recover, over half way with still 2,500,000L$ in mainland assets, and approx 3,300,000L$ in stocks, totaling 5,800,000L$.
At this point we could probably sell it all as bunch and do a full refund by end of month 3.

Equipment value
Due to this, most of our equipment lost immediately value, whole banking system is valueless anymore, there won’t be any buyer for it. If an RL bank will make an appearance into SL, they will most likely develop it in house, so no market there neither. That’s an immediate loss of about 1,300,000 to 1,600,000L$, depending how you calculate and what do you include. However, with some transformation, this value is not completely lost.

Future plans
Future plan is not to fold and die, instead continue on with different company name, and different business plan: Payment services for example. Some work has already been done towards this, and banking system can be partially used as it is for this (ripping away interest payment system for example), in this context, our most valuable equipment has most of it’s value intact.

One of our plans we are researching into now, is registering an RL company, and transforming into limited partnership, or investment club. The clause on the new policy “or any other direct return on investment” is the hard one and true problem for us. Our initial contingency plan was to transform into investment club, but we also need the RL company for that. We have contacted an lawyer, and are working on solutions to realize this plan.

What ever happens, SLIB will CONTINUE in a form or another, but we are fighting HARD to be able to keep paying interest, dividends or other form of monetary return on investment to you guys. That’s the true struggle, not the continuance of business.

Also, i will likely be putting into SL some of my personal money, however, as this has been my main living income for the past 10 months, i do not posses much money to put back into SL.

Bankruptcy is unlikely at this point of time, however, everyone should remain calm and let us work through this. In the case of bankruptcy however, i will continue on strong communication, and high ethics, and will honor as far as possible all liabilities and work with clients for alternative forms of fund refunds than pure L$.

Conclusions of Future of SLIB
SLIB will BECOME STRONGER out of this, our business will transform, but we shall prevail, and this is actually an opportunity for us to transform into something stronger.

Interest payments and dividends has been halted, thus we are in full compliance of the new policy, except for name which is in the shade of grey. Thus LL cannot just shut us down ethically, however, LL is infamous for being unethical, and has already forced several banks to shutdown in the past few months.

Call for action: Please help us!
If you can do something to help us, Please Do! This is a critical moment of time for SLIB, and help is welcome. Ideas, marketing & PR skills, web development skills, monetary aid, you name it, and it’s welcome.