Hi,
I found a relatively cheap plane that I want to buy. The problem is I don't have enough money at the moment. I'm thinking about loaning 8M w/o securities for 1 year, and the bank charge like 10.5M for the total payment
I'm wondering if I loan the amount, then use the A/C as securities and make another loan (with cheaper rate I hope) then pay back the 8M loan I've made
Would that possible and feasible in term of financial efficiency? Would the bank demand a penalty for early pay back?
Thanks
Quote from: Mr.HP on August 19, 2012, 02:51:13 AM
Would that possible and feasible in term of financial efficiency? Would the bank demand a penalty for early pay back?
yes and yes
Uhmm, by paying the 8M back early, there's a penalty, then how is it financial efficiency?
Quote from: Mr.HP on August 19, 2012, 03:11:39 AM
Uhmm, by paying the 8M back early, there's a penalty, then how is it financial efficiency?
Because instead of throwing money away with leases you are building equity.
I see.
Well, I've made the lease for 1 year and maybe buy the A/C later. Would the price of the A/C 1 year later be cheaper or stay at the same price as selling now?
Thanks