Commercial Banking & Overdraft

1. Commercial Bank & Cash Deficit Policies

Commercial banking offers structured liquidity via standard credit facilities as well as configurable cash deficit policies at the Commercial Bank:

• Tier-Scaled Credit Facility: Commercial borrowing capacity is tied directly to your balance sheet, with maximum debt ratios scaling down by 5% per Corporate Scale Tier to encourage equity building and prevent late-game balance sheet collapse:

  Scale Tier	Level Name	Net Assets Threshold	Max Debt Ratio	Credit Safeguard
  Tier 0	Startup	€0 - €1,000,000	65%	Guaranteed €50,000 baseline floor for early facility construction
  Tier 1	Enterprise	€1,000,000 - €10,000,000	60%	Unlocks Commercial Overdraft policy
  Tier 2	Corporation	€10,000,000 - €100,000,000	55%	Standard industrial leverage
  Tier 3	Multinational	€100,000,000 - €1,000,000,000	50%	Balanced 1:1 equity debt parity
  Tier 4	Megacap	€1,000,000,000 - €10,000,000,000	45%	Institutional treasury buffer
  Tier 5	Titan	€10,000,000,000 - €100,000,000,000	40%	Institutional prestige credit buffer
  Tier 6	Empire	€100,000,000,000+	35%	Purely balance sheet proportional without artificial ceilings

• Dynamic Leverage Risk Spread: Daily borrowing interest rates adjust dynamically based on your company's active Debt Ratio (Debt / Assets):
  • Prime Credit (< 20% Debt): 4.0% daily base rate. Low leverage, pristine solvency. Can be expanded up to 35% Debt via Conglomerate Financing.
  • Moderate Leverage (20% - 40% Debt): 5.5% daily base rate. Standard operational growth debt. Expands up to 55% Debt with Conglomerate Financing.
  • Heavy Leverage (40% - 60% Debt): 8.0% daily base rate. High borrowing, elevated risk.
  • High Risk Leverage (60%+ Debt): 14.0% to 18.0% daily base rate. Escalates steeply near your tier debt limit (completely eliminated at Conglomerate Financing Level 5).
• Policy 0: Production Halt (Debt Protection) (Default): If your cash balance drops to or below €0.00, factory production automatically halts dynamically (throttled to 0% with log reason Insufficient cash on hand). Operational expenses and worker wages drop to €0/min, completely protecting you from debt accumulation and zero interest is ever billed. Production resumes automatically on the next turn when cash is restored.
• Policy 1: Commercial Overdraft (Unlocked at Tier 1 Enterprise, €1,000,000+ net assets): Factories continue running at 100% capacity even when your liquid balance turns negative, drawing against an asset-backed operational credit line.
• Borrowing Base Limit: Equal to 10% of total corporate net assets (cash, bank deposits, inventory, machinery, and facilities), scalable by conglomerate financing boosts.
• Per-Minute Accrual: Billed strictly on actual negative cash at a base rate of 8.0% per day (divided across 1,440 turn minutes).
• 100% Tax-Deductible: Overdraft interest is fully tax-deductible, directly reducing daily taxable income on your Profit Sheet.
• Accounting HQ Discount: Each level of the Corporate Office Accounting Department lowers your daily borrowing interest rate by an 8% relative discount per level (up to -40% at Level 5 with a hard floor of 2.50%/day), and discounts the overdraft interest rate by 1.0% per level down to a floor of 3.0% per day.

2. Step-by-Step: How to Borrow Cash, Repay Loans & Pay Tax Advances

1. Navigate to Commercial Bank: Go to your Commercial Bank page.
2. Borrowing Funds: Select your desired loan principal amount based on your maximum credit limit (40% to 65% of your total net assets based on your Corporate Scale Tier, minimum €50,000) and click Take Loan. Funds are deposited instantly into your corporate cash balance.
3. Interest Settlements: Loan interest is calculated at midnight based on your leverage risk bracket. Expanding your Conglomerate's Finance Department shifts your low-interest borrowing brackets up to 35% debt and eliminates High Risk loan penalties at Level 5. Meanwhile, hiring an Accountant in your Corporate HQ optimizes your midnight corporate profit taxes with a 5% deduction per level (up to 25% at Level 5).
4. Repaying Loans: Enter the repayment amount under the loan settlement section to clear your debt and restore your available credit line.
5. Tax Prepayment Buffer: You can also deposit advance tax prepayments under the Tax Prepayment tab at the bank. Tax prepayments shield your liquidity during midnight settlements. Learn more in the Taxes & Audits Guide.

3. Corporate Insolvency & Bankruptcy Safeguards

What happens if a corporation takes excessive debt or suffers crippling operational losses?

• Insolvency Threshold: If your total net assets (Cash + Inventory + Infrastructure minus Loans) fall below zero, your corporation enters financial distress.
• Bankruptcy Auto-Reset: Prolonged severe negative balances trigger corporate bankruptcy, automatically resetting the company back to a fresh Tier 0 Startup so you can rebuild without insurmountable debt traps.
• Prevention Strategy: Maintain positive cash flow, train your Accounting Department, and liquidate inventory on the market to service debts before bankruptcy occurs.

4. Corporate Solvency Ratios & Credit Ratings

Your bank credit limit and solvency metrics are continuously tracked by the Solvency Engine. For a full breakdown of the 8 financial health indicators, actual vs. theoretical profit run-rates, and asset write-offs, visit the dedicated Corporate Finance & Analytics Guide.