AirwaySim

General forums => General forum => Topic started by: Kazari on September 14, 2011, 05:48:06 PM

Title: When you have negative cash, what is the interest rate?
Post by: Kazari on September 14, 2011, 05:48:06 PM
I took out a loan and bought a plane.

I now have a loan AND a negative cash situation (although a positive net worth).

I was thinking about refinancing the loan, but I don't know what rate I am paying on the negative cash so I can't assess which is better.
Title: Re: When you have negative cash, what is the interest rate?
Post by: schro on September 15, 2011, 04:02:29 PM
From what I can tell, no interest is assessed for negative cash.

The downside is if you are too far negative to pay your bills/maint/etc, and you can't renew leases in negative cash scenarios. If you're only a million or two away from zero, its probably no big deal, but having the cash on hand will prevent your airline from flushing itself while you sleep at night...