'Hmmm, this guy's all business and he's a little too straightforward. He's also naturally intimidating and has no sense of humor, but I think I can deal with him. I have to be upfront and tell him everything I know, without telling him too much... Easy, right?'
"All right, I'll start by explaining my former country's system. I don't specialize in this field, but I think I can give you the basics." I start explaining by outlining my capabilities. "Several companies offer for things to be purchased in installments, which Jeff already explained the concept of, correct?"
"Indeed." Floyd nods and waits for me to continue.
"Although installments are used for small purchases, like I've suggested, more frequently they're used to pay off large loans. For example, if someone bought a house, some land, or a new vehicle... uhhh, transportation such as a horse and carriage, then they would apply for a loan. Instead of paying the original seller in installments, they would receive a loan from another organization to make their purchase. Then, they would pay back that organization in installments, plus interest. I've mentioned interest to Jeff, but I'll brush on it again. Some percentage of the initial purchase is added to what's payed back, that's interest. This interest justifies the existence of the organization who made the loan, allowing them to make money and continue to operate. That's the first type of loan in my home country." I do my best to explain installments, excluding Floyd and Gerald everyone looks confused.
"Interesting, continue." Floyd encourages me to proceed while his facial expression remains fixed.
"This system is the most similar to what I've suggested, but for the sake of completeness I'll explain another type as well." I scrape my memories for anything relevant to present, I hope I don't get anything wrong. "What I've explained is the installments method, but there is also a revolving payment system. Instead of paying off debt in pieces, you pay it within a time frame, such as monthly. As long as you pay off everything you borrowed that month by the end of the following month, you don't have to pay interest. But, if you don't pay it off by the end of the following month, you'll receive late charges. If you continue to ignore it, every month your debt will increase based on what you owe. This is 'compound interest,' interest on your interest. It's the scariest debt, because it grows faster and faster as time passes. Most people avoid it as much as possible." I try explaining the general idea of a credit card, at this point even Gerald is frowning in puzzlement.
"I see, and the repercussions for not paying off the debt?" Floyd questions, his narrowed eyes and lack of expression don't budge.
"There are many types. To start, there are two kinds of debt, secured and unsecured. Secured debt is safer for the lender because there is collateral. For example, if someone takes out an installment type loan for a ca... carriage, the lender might require them to offer their house as collateral. If they never pay off the debt, the lender becomes the owner of their house. Also, their 'credit' is effected. Credit is managed by an additional organization, a 'credit bureau,' there are many individuals and organizations that loan money, but only a few manage credit. This credit encompasses two things, a credit report and a credit score. A credit report documents all loans and debt relevant to an individual, and a credit score is a numerical value used to represent how good the credit report is. The lenders will report their transactions to the 'credit bureau' so it can be added to credit reports. The more consistent someone is at paying off their debt, the better their credit will be. If their credit is bad, no one will be willing to loan them money, or the lenders will require a higher interest rate." I do my best to not over-complicate anything, but be thorough at the same time.
"What about unsecured debt? And what about people who have special circumstances? Don't tell me the lenders simply lose their money?!" Floyd pushes me for more.
"If someone can't pay, but has no collateral, they can declare bankruptcy or try to come to a settlement. Coming to a settlement is when both parties agree to the debtor paying less than his original debt, this can be at a loss to the lender, but some might choose it to avoid trouble. The other possibility is to get the government involved. To do so, the borrower can file bankruptcy, or the lender can request judgement. This results in either the borrower's assets being sold to pay the debt, or the borrower's wages being garnished, which means part of all money he makes goes to the lender. In some rare cases the lender never gets his money, but the profits from other instances far exceed that." I finish my explanation and look around, Floyd's face has finally changed, he slightly raises an eyebrow.
"And... You're suggesting we use something similar?" Floyd asks incredulously.
"No! No no no! I think we should implement something much simpler!" I wave my hands back and forth and deny Floyd's statement. "I don't think many people make large purchases in this village, nor do I think any of the villagers are dishonest. Involving other organizations or the kingdom isn't necessary. I simply suggest using installments and interest for smaller items and establishing a group to keep track of the villagers finances. Initially, I only thought using installments would be nice, but that requires a lot of organization. So, I was hoping you all could form a group that monitors the flow of money and implements installments. If it doesn't produce results within a month's time, just give up. But if it goes well, perhaps you could expand it to other nearby villages. If so, you could pass your duties on, or you could continue and make more profit."
'Oi! This all started with me trying to get a weapon without money! Why'd I have to get so involved?! I could have made the offer directly to Jeff instead of proposing the entire system! It's true it would be useful, but it's not worth the trouble!'
"All right, I'm in." Floyd gives his response and his face returns to it's usual glare.
"Haha, no worries, I just thought it would be nice! Of course, you wouldn't want to waste your time!" I try to apologize for wasting their time and stand up from my seat.
'Wait a moment! Did he say 'in' or 'out?' He must have said 'out' right? But, the word echoing in my mind right now is 'in,' I must have gotten my hopes and reality mixed up!'
**Silence**
"I said I'm in..." Floyd reiterates.
"Huh?"
"It's obvious you've witnessed this system, you were honest about your lack of experience and didn't avoid mentioning the obvious problems. You thought through how to apply the knowledge you have and you came up with a solution for this village and a compromise with us. I might not like or trust you, but I would never let that affect my judgement. It sounds profitable. But, I know this village best and I know business, if we form this group, you won't be taking part." Floyd lays out his observations and condition.
'So... basically "leave it to me" is what he's saying? Thank you! I don't want to deal with boring business stuff! That's the worst part of being an entrepreneur! I'm free of all responsibilities, yay!!!'
"Certainly, I've given you the idea, but implementing it should be left to the five of you. Thank you for your time." I've escaped another tragedy, I'm getting good at that.
Jeff grins, Leticia looks back and forth between Floyd and I, Gerald's eyebrows are both raised and Anna stares at Floyd. I turn around and walk out the door.
"Why'd you kick him out?" Anna whispers to Floyd behind me.
"I was testing him. I wanted to make sure he wasn't planning on scamming us out of our money once he holds a position in the group. I didn't think he'd agree so readily." Floyd whispers back.
"Hehehe, the 'one sentence warrior' Floyd just spared so many sentences for someone he 'might not like.'" Anna chuckles, seems teasing Floyd is her hobby when she's not making money.
'At least wait until I'm gone before you whisper about me! Wait, I am gone... Has my hearing improved? More importantly, I just got out of that because he was testing me! I'll never complain about you being skeptical Floyd! You're a good guy in my book!'
I give Floyd a mental thumbs up and return to my room. My routine doesn't change for the following month. I hunt with Lily, learn weaponry from Jeff and check in on the progress of the newly formed "credit bureau." After the many developments in the last few days, I'm content with simply enjoying my life for a month. But, all good things come to an end, and this is no exception.