18 replies to this topic

[jimmyjohn]

I was issued a bond and now have sufficient cash to pay it back but there is no button to let me do so. The bond was issued at the beginning of the month and therefore I keep getting the message that says that I do not have sufficient funds to pay the monthly installment, This is ruining my credit score. How come I cant pay back the bond in full when I have the money?

[sviridovt]

they will repay automatically over the course of 5 years, there is no way to pay it ahead of time. If it says that there is no sufficient funds, then that means you down have enough money to pay for it, after 6 of those your airline would be forced into bankruptcy

-Tim

[jimmyjohn]

I dont recommend this strategy because if you are ever in debt at the begining of the month, you are screwed

[Sheepy]

We do need an option to pay back bonds early, possibly with a penalty fee.

[sviridovt]

We do need an option to pay back bonds early, possibly with a penalty fee.

agree, dont see why there should be a penalty for paying early but the option should be there

[bolli]

agree, dont see why there should be a penalty for paying early but the option should be there

Its like ending a lease early
You're paying interest on the bond, so just cancelling it will mean that the bank doesn't make a profit - so they will insist on a termination fee

[sviridovt]

Its like ending a lease early
You're paying interest on the bond, so just cancelling it will mean that the bank doesn't make a profit - so they will insist on a termination fee

oh, thats how it works, I thought it was kinda like a loan with money

[BritAbroad]

oh, thats how it works, I thought it was kinda like a loan with money

Banks have to make money, somehow I guess...
Nobody gives anything free, even "loans".

[Yuxi]

I dont recommend this strategy because if you are ever in debt at the begining of the month, you are screwed

If you are regularly in debt at the beginning of the month, you're overextending your budget.

[Adaptice]

I agree with Sheepy, we need an option to terminate the bond. I think its also happens in real life

[Kngkyle2]

Yes this is definitely something that is needed. And yes in the real world there is a fee when you call a bond.

http://en.wikipedia....i/Callable_bond

[Mr Tree]

I don't think we can let our list of wants get too big. We all know who has to end up coding it in.

[Adaptice]

It's just a suggestion anyway, no problem if Yuxi wont do this

[vpirri]

I agree.  There should be a way to pay a bond back early.  I have no issue with an early repay penalty.

[ZarethKnyght]

I have a question about this. I just got my 3rd warning on bonds but I have enough money to pay it back. Why did I get the warning if I had enough money to pay? It also lowered my credit rating to D now.

[Yuxi]

I have a question about this. I just got my 3rd warning on bonds but I have enough money to pay it back. Why did I get the warning if I had enough money to pay? It also lowered my credit rating to D now.

 

Are you checking your cash balance on the day the bond interest is due? Your cash is at its lowest on the 1st day of each month (after paying all your monthly expenses like gate leasing, aircraft maintenance, etc) and after the 15th (payroll).

[ZarethKnyght]

Ah. The bond payment date must have been on the payroll date. That would explain my warning and sudden drop in money.

[joojoo1975]

i really hope there can be a bond early pay option some time.  I currently have five 5 million bonds that wont be due for quite a bit.

 

 

 

a strategy i used when it came to bonds was i used em for a rather large investment.  I already had cash flow and what not but i needed a terminal if i wanted to continue to fly out of TLV.

 

So i issued five of the 5 million bonds and bought one.  a word of warning though, if you do this, Make Really sure you do have a good profit coming in as well go ahead and include costs of

 

having some spare airplanes bought/leased.  cause as soon as I did the 5 bonds, i could lease no more airplanes for the night as my credit rating plummeted(the next morning my credit rating rebounded and i was able to lease planes again)

 

 

 

 

TLDR;  if you gonna do a lot of bonds at once to cover a major expense, throw in there the cost of like 3-4 planes leased/bought and lease/buy em before you issue the bonds

[Denver.]

i really hope there can be a bond early pay option some time.  I currently have five 5 million bonds that wont be due for quite a bit.

 

 

 

a strategy i used when it came to bonds was i used em for a rather large investment.  I already had cash flow and what not but i needed a terminal if i wanted to continue to fly out of TLV.

 

So i issued five of the 5 million bonds and bought one.  a word of warning though, if you do this, Make Really sure you do have a good profit coming in as well go ahead and include costs of

 

having some spare airplanes bought/leased.  cause as soon as I did the 5 bonds, i could lease no more airplanes for the night as my credit rating plummeted(the next morning my credit rating rebounded and i was able to lease planes again)

 

 

 

 

TLDR;  if you gonna do a lot of bonds at once to cover a major expense, throw in there the cost of like 3-4 planes leased/bought and lease/buy em before you issue the bonds

Good job in getting back a 5 year old topic to life.