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So why do the loans in this game suck so much?

Simcountry: Simcountry Bulletin Board  So why do the loans in this game suck so much?

[New enterprise]

Sunday, October 26, 2003 - 03:43 am Click here to edit this post
i've played this game before, about 5 months ago and then quit because my enterprises went to hell because of mysteriously high prices for supplies, but that is another topic.
my prob is with the loans. why arent they normal? most of the time u pay the amount of the loan divided by the period of time plus the interest owed for that month but in this game u just pay the interest each month and then pay the loan off at the end of the period. seems pretty worthless to me. opinions?

Orbital

Sunday, October 26, 2003 - 04:50 am Click here to edit this post
So you figure aye...!? Do you know the difference between a loan and a payment plan...!?

So let's see. How about you give me a loan for 10,000 dollars at 10% interest for five years. Now i am 10,000 dollars richer. then i give you 1000 dollars five years running, and i am down to 5000 dollars cash richer from the origanl loan minus the interest. So, you gave me the loan and your stuck five thousand dollars poorer. No wonder it's so hard to get a loan these days...

saphdaddyisback

Sunday, October 26, 2003 - 11:36 pm Click here to edit this post
thanks for the help. but wouldnt you have to pay back the original 10,000 dollars to me and make me 5000 dollars richer in the whole process? i think thats how it used to be but has it changed in the game? another response would help. thanx. (theres a good chance im just stupid or dont remember how the game was)

Again

Wednesday, October 29, 2003 - 02:12 am Click here to edit this post
Loans to corps in the real world work like they do in this game. If a corp borrow 10B for 3 years, they only pay the interest monthly and then pay the principle (10B) at the end of the period. Generally there is a prepayment penalty, which is the .5B you see in the game.

Consumer loans work differently, where the principle is paid back along with interest over the life of the loan.

saphdaddyisback

Thursday, October 30, 2003 - 04:47 am Click here to edit this post
thanx for the help. i understand it now.

Smiley Farm Market and General Store

Wednesday, November 19, 2003 - 01:13 am Click here to edit this post
Why the difference between consumer and corporate loans?

Hometown

Wednesday, November 19, 2003 - 04:00 pm Click here to edit this post
because like in the real world corporations get loans so they will build in a city town or county..they get tax breaks too..a consumer gets taxed heavily compares to corporations..Just found out Family Dollar a small time corp out bidded Dollar General in rental space by 3 times the going rate losing the space for Dollar General.Now Dollar General needs a new place to occupy, at relatively the same rent..Which they have found but won't rent till after January because they can't stock it with Christmas sales stuff..Family Dollar has moved in with Christmas goods, but 3x's the rent they would normally would pay for the spot..hoping they will do good there yet the small plaza has lost buisnesses..many empty spaces. Now from I heard is after awhile Family Dollar will try to get the rent lowered now that they have the space...saying that they can't afford the space because the buiseness is lacking do to low volume of customers entering the plaza..and will probably will get it lowered or they will close too. Back home Illinios I remember Frito Lay was wanting to build a factory on prime farming land just outside of huge city.. but didn't do so because they didnt get the tax cuts they wanted to build there.. thus losing the city a bountiful employee job rate increase..People were so pissed at the city council for losing that deal! Corporations like the very rich get loopholes and cheaper rates than a small consumer who may or may not be able to repay a debt. Thats life...What is not fair in this game is the world trade bank gets to charge a higher rate of intrest yet we as small countries and ceos still can only give loans out for 4%...?? Why is that..this could have been a reset to make this fair..but alas..has this game been fair yet lol?

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