tcoleman1 Posted March 8, 2009 Share Posted March 8, 2009 first of all i will address the question part. at the moment i am everton, i noticed that i have a chairman loan and a bank loan, one of which doesnt end until 2028. i was wondering whether if i have extra money in the bank whether more of this gets paid back? if it doesnt then i was wondering if this is a feature that could be added, for example say i have 10 million extra i dont want to spend, i could give that to whoever the club owed and this would reduce the overall amount and the ammount paid back each month? thoughts? Link to post Share on other sites More sharing options...
golfpunk Posted March 8, 2009 Share Posted March 8, 2009 The thing is some banks won't allow an early repayment. Take a mortgage for example, the bank can set early repayment charges for if you ever have extra money that you want to pay your mortgage off with. This would maybe be the case for the bank loan that clubs have in the game. Obviously the bank want the repayments to last as long as possible because they are making money off the interest of the loan. Link to post Share on other sites More sharing options...
deyholla Posted March 8, 2009 Share Posted March 8, 2009 It would make sense for a bank to want the money back as fast as possible (especially in this economic climate). Taking into account the Time Value of Money most banks do accept early repayments of principals on loans. The interest they are charging is to take into account the time value of money. While this feature would be nice, I figure it wouldn't be the managers decision but more the boards decision. Link to post Share on other sites More sharing options...
golfpunk Posted March 8, 2009 Share Posted March 8, 2009 It would make sense for a bank to want the money back as fast as possible (especially in this economic climate). Taking into account the Time Value of Money most banks do accept early repayments of principals on loans. The interest they are charging is to take into account the time value of money. While this feature would be nice, I figure it wouldn't be the managers decision but more the boards decision. I'm guessing SI didn't really take the whole recession into account when they were making FM09 Link to post Share on other sites More sharing options...
Mezz Boms Posted March 8, 2009 Share Posted March 8, 2009 I thought that the charges can be minor if you leave something like 10% of the original loan amount left to be repayed in instalments. Not 100% though Link to post Share on other sites More sharing options...
Nobby_McDonald Posted March 8, 2009 Share Posted March 8, 2009 Boards can pay off club loans if they see fit. Link to post Share on other sites More sharing options...
Mojby Posted March 8, 2009 Share Posted March 8, 2009 I do not think that the board can pay off the loan early in FM09. I recall a thread already about this where one of the mods said that it was not possible. The reason being that IRL a loan is a contract and it can be hard to break that contract as it make more financial sense for the bank and the person with the loan to let it run as long as possible - The Bank because they make more money from the interest. The person with the loan as they do not have to use a chunk off their wealth to re-pay the loan. It is bog standard run of the mill real life finance. You have to remember that if it as not for the banks making so many loans, we might not be in the financial mess that the world is in now. If loans did not make such a hugh chunk of the banks profits, they would simply not do loans. I may be wrong on this but if a consortium buys the club, they may clear the loan but this is the only way. Link to post Share on other sites More sharing options...
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