loans without securities

I notice on the overview page there is interest rates quoted "[color=#333333][font=Verdana, Arial, Helvetica, sans-serif][size=2]For loans without securities". However, I am unable to get any loans as without having any securities. I feel that we should be given access to [/size][/font][/color][color=#333333][font=Verdana, Arial, Helvetica, sans-serif][size=2]loans without securities[/size][/font][/color]

Reasons for unsecured loans:

1.) Sometimes, we may put a deposit for a new plane but we forgot that there are some leasing payments to be paid. As a result those planes would be required to be return to the lessor when we are unable to pay the lease.

2.) Any cash in the bank are opportunity cost. Due to the current auctioning system, only companies with money for the deposit would be able to bid. However, it is very hard to know when a "cheap" offer may come about. Thus, it is impractical for companies to set aside certain amount of money to bid. This would also help to make the auctioning system more realistic as the supply/demand would be better. Eg: There may be demand for the aircraft but companies are unable to bid for it due to the lack of cash

Ideas to implement unsecured loans

1.) Equity of $20million would apply in order to have access to loans

2.) Amount of loan given can be a percentage of the security deposit for aircraft leasing. Eg: 50% of the total amount of security deposit

I think you are confusing that credit worthiness. "Loans without securities" mean just simply that you borrow money from the AS-Bank without stating any usage (by using the loan tool). The alternative would be that you use the aircraft financing tool. For the bank this second option is less risky because in case of you going bankcrupt it still gets back the airplanes.

For both you need to have some 10.000.000 AS$ on your balance sheet (fligh equipment account).

Thanks for the reply. Wouldn’t it be easier to take loan if it is based on the balance sheet of security deposit? Currently, I have 33 planes. Flight equipment5,965,660 AS$Security deposit115,697,374 AS$It is really weird that despite having so much money in the security yet I am not able to get unsecured loans. I feel that the rules should be tweaked slightly.

But the securiy is already a security for running contracts etc. - you can’t use it as a security twice.

If it is called "[color=#1C2837][size=2]Loans without securities", why is there a need to have a minimum of $10,000,000 of flight equipment?[/size][/color]

Again because you use no securities for your loan. If you go out of business the bank has very little chance to get (all of) their money back.

What you can not understand is that your company needs to have any real value so that the bank would actually give you a loan. In business sector it does not work the same way as in individual loan sector. Companies don’t just go to the bank and get a loan contrary to the normal, daily people.

[color=#1C2837][font=Arial][size=3][size=2]I am still unable to get unsecured loan despite having AS$10,122,760[color=#333333] [/color]of flight equipment. My airline credit rating is AAA. May I know what are the other requirement I need to fulfill to get unsecured loan?[/size][/size][/font][/color][color=#1C2837][size=3] [/size][/color]