Loan Timing

[Aahz the Pervect]

Can I accept delivery of a plane and go into the red so I can then use that plane as an asset to get a better loan?

Or do I need to get an unsecured loan before delivery to ensure I stay above water?

Thanks!

[Maarten Otto]

You can't buy aircrafts if you just started in the game. All you can do is "lease" aircrafts. And couse they'r not yours you can't use them to secure a loan.

[Sigma]

Yes you can take delivery of a plane that will put you into the red then borrow against it.

Whether you want to get a loan first or not to ensure you don't is up to you, but there's no real reason to.

[Aahz the Pervect]

You can't buy aircrafts if you just started in the game. All you can do is "lease" aircrafts. And couse they'r not yours you can't use them to secure a loan.

Maybe diff scenarios have diff opportunities, but I was able to buy a plane and lease another on day one in the Jet Age. Granted, they are tiny little things compared to the fleets the Vet's fly and....it is gonna be a tightrope staying afloat once it arrives.

Yes you can take delivery of a plane that will put you into the red then borrow against it.

Whether you want to get a loan first or not to ensure you don't is up to you, but there's no real reason to.

Whew!!! Gives me a little more margin for error if I don't get the revenue stream up to where I want it by then. Thanks!!!!

[ban2]

i would recomend never getting a loan to lease

always use a loan to buy, this means you're airline value negates the loan and you can then use that aircraft to secure a newer loan.

[auerbacs]

I have a related question:

When you're in the red, when do you stop making loan payments? So, I want to buy a new plane using my current plane as to secure credit for the new one. My hope is to just loan the amount that I need for the order confirmation. When the plane arrives in 6 weeks and I pay the on-delivery payment, I'll be about half a million in the red. That's fine, because I can make that back up, but I'm worried that the game will decide not to repay the loan and then the bank will seize my first plane.

So how far in the red does one have to be for the game to stop making the loan payments. And another thing, when you're in the red, do you have to pay interest on the negative cash holdings of the company? You're presumably borrowing it from somewhere...

Any ideas?

Thanks,
Auerbacs

[swiftus27]

You do pay interest when you are in the red....