Hello,
I am experimenting a bit with loans and really wonder what will happen if I don't have money to pay a loan payment? Will the amount just be taken and the bank account will be negative? Will the enterprise go bankrupt? Will the loan be deleted? Will I receive a rescue loan?
I would appreciate an answer.
Regards,
Christian
You will receive a "rescue-loan" to pay all the bills. The company won´t enter bankruptcy but after two (?) rescue-loans in a row, your company will be liquidated.
But that is after week end closings only right?
I believe you get into negative.
I have set up test carrier with some money which I had no use for. I bought one aircraft and got as many loans as possible and left the enterprise with 0AS$ in the bank. Lets see what happens in a week. Here is the financial schedule:
I know when paying weekly interest from a cash loan you are allowed to go into negative, not sure about loan payments though.
Yes, the loan payment of interest and principal will be made and you end up with a negative cash balance. After two consecutive weeks, you'll get liquidated at week closure if your balance still remains negative.
So it seem like I was granted a rescue loan.
Now I have a second question. What happens if you don't pay a loan which has security for example aircraft bough or ordered on credit? Will the bank take the aircraft or will you get a rescue loan?
I believe the same condition applies as with regular loan, with the exception of having the smaller interest rate given that this is secured loan. But you are not going to get the aircraft removed from the fleet. I believe that after two weeks you get liquidated and in that case the aircraft bought on loan will be sold at 15%.
So let’s say a sub has 100 million in deposits, and 20 in unsecured loans, you cannot pay loans, sub get liquidated and you get 70 million back. (just very basic math, 100 minus 10 for weekly rent minus 20 in loan).
If a sub has 100 million plane and you still owe 20 million secured loan on that aircraft and cannot pay loan, sub gets liquidated and you get zero money back (15 million proceedz from aircraft sale at 15% off the 100 million, and loan is 20 million, so no money back from proceeds).
Then it has nothing what so ever to do with the security of the loan.
I have set up an other test scenario and we will see what happens in a week.
@ Highlander222 - And what exactly does your livery have to do with a loan payback schedule? Please stop spamming your livery in unrelated posts.
Do you know where is the correct place for your livery?
HERE. and only there.