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--- gamemanual:howto_financing [2021/12/03 17:19] – [Lines of Credit] admin
+++ gamemanual:howto_financing [2021/12/06 14:35] – [Loans] admin
@@ Line 11: / Line 11: @@
 ===== Loans =====
+Loans are a medium-term type of debt. They have higher requirements than Lines of Credit, but you can borrow more money with them. Compared to bonds, the maximum amount you can borrow is less, and you have to pay more interest. However, you need less credit to get one, and they're shorter term.
+With a loan, you will make monthly payments. These payments also include principal. So you will be paying down the debt with every payment, and the amount you have to pay each month never changes until the loan ends.
+Loans are a good choice if you want a debt that you'll start paying off immediately, thus reducing the amount of debt on your books every month. Loans also have the benefit of not having a maturity date like Bonds, so there is no large one-time payment. The credit requirement for loans is also lower than bonds, and your credit will recover faster when taking a loan compared to a bond. Unlike bonds, you can also pay off a loan at any time.
 ===== Bonds =====