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Author Topic: Negative cash interest free?  (Read 357 times)

Offline JumboShrimp

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Negative cash interest free?
« on: July 25, 2012, 05:04:58 AM »
1. When in negative cash, no interest is charged on negative balance.

Solution: at the end of every day, interest should be charged on negative cash.  Interest should be something like benchmark + 2 x D rating spread.  The amount should be added to interest field daily

2. When in negative cash, no loan repayments are made, no interest is charged.  Additinally, loand balance goes down as if the payments were made.

Solution: Do nothing special.  Make repayments as if cash was positive, charge the payments to cash, and if cash is negative, make it increase the negative cash balance.

Offline JumboShrimp

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Re: Negative cash interest free?
« Reply #1 on: July 25, 2012, 07:37:23 AM »
Correction:  Missed principal payment of a loan is handled correctly.

But negative cash makes loans interest free and negative cash balance also interest free...

Offline Sami

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Re: Negative cash interest free?
« Reply #2 on: July 25, 2012, 01:54:14 PM »
Negative cash is interest free currently. Not really a bug of any sort, just not modelled.

--> Moved.

Offline JumboShrimp

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Re: Negative cash interest free?
« Reply #3 on: July 25, 2012, 07:21:24 PM »
Negative cash is interest free currently. Not really a bug of any sort, just not modelled.

--> Moved.

Not the highest priority in general, but I am seeing a lot of players (including me) go into red to obtain slots.  The system lets them - I guess for playability reasons.  Should the system let players buy up slots while their cash is negative?  That's a separate subject.

As far as 2 scenarios interest:
1. negative cash, loan payment is due (Monday). 
a) printipal: works fine.  Prinicipal payment skipped, loan balance not decreased.
b) interest: interest and fees should be charged, cash balance should be updated (to go deeper into negative)

2. negative cash, end of each day
Interest should be charged.  To make it simple, rate should be equal to D-credit rated airline.  So interest expense field should be increased, cash balance should be decreased (to go deeper into negative)

 

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