In the game, you may need to raise capital.

If an IPO is out of the question, the game offers three different credit systems.

All financing systems are available in the Banking window.

The first of these is "Line of Credit."

Lines of Credit work like credit cards, they grant you a maximum balance, and you can draw down from that balance anytime.

You will make monthly payments on that balance.

This area contains information about your line of credit, your current balance, the interest percentage, and how much you’re paying per month.

Over here is the global interest rate. The lower this value is, the better the interest rates are.

Below that is your credit rating. When you apply for credit, loans, or bonds, this value can drop if the amount of debt you have is too much compared to your revenues. This rating affects if companies will loan you money and at what interest rates.

This area is where you’ll interact with the line of credit.

And this area is text information about your current line of credit offer.

It is wise to apply for a line when your company is healthy. Banks are less likely to give you money when your company is failing.

The amount you can apply for is small with Lines of Credit, but it does not impact your company’s credit ratings.

To apply for the offer on the right, you’d need to click the “Apply For Credit” button.

To pull money from your line of credit, enter the amount you want to withdrawal and then click the Withdraw Funds button.

The game provides several payment options for lines of credit.

Making no payment will hurt your credit rating, making it difficult to raise funds in the future.

Minimal Interest payments will not lower the balance you owe.

You can enter the monthly amount of payments you wish to make in this text box. Be sure to click the radio button to select the payment option.

You can also make a one-time payment by entering the amount of money you want to pay in the text box and then clicking the One Time Payment button.

You can also pay off your complete balance with the Payoff Balance button.

The next financing option is Bank Loans. Access the bank loan system by clicking this button.

The layout of the loan system is like Lines of Credit, but it deals with banking.

Bank loans are more serious than lines of credit. The amount loaned with a Bank Loan is higher, they’re harder to get, and they have a major effect on your company’s credit rating.

Unlike lines of credit, the loan offer is on the left.

And your existing loans are on the right.

To take out a loan, use the two sliders.

The top slider is the amount of money you’re borrowing, and the bottom slider is the length of the loan.

Here the game displays the amount of interest and your monthly payment for the above loan.

To take out the loan, click the Sign button.

Once you take out a loan, it will appear on the right-side list.

If you want to pay the loan back early, select the loan from the list, and click the Payback button. There is no penalty for early payback of the loan.

The final debt system is the Bonds system. You can access it by clicking the Bonds button.

Bonds are a type of debt that multiple institutions or the general public finances.

How it works is that you sell a bond or a share of debt. In return, you pay back a fixed rate of interest on that share, called a coupon. When you reach the end date for the bond, called the Maturity date, you’ll buy back all the bonds for the amount initially loaned to you.

For instance, if you issue $100 Million in bonds at a 3% interest rate, you’ll pay $3 Million per year until the maturity date. On that date, you’ll buy all $100 Million bonds.

Bonds are harder to raise but can offer you more money for longer periods at lower interest.

Important information about your existing bonds is here.

The bottom left contains the tools to issue a bond, and the bottom right is your existing bonds.

To take out a bond, adjust the amount you want to raise with the top slider.

Next, select your maturity date with the bottom slider.

The interest rate and the yearly payment are here.

If you want to take out the bond, click the Issue Bonds button.

Your bond will now be on the list.

You can buyback bonds early, but you must wait two fiscal years after you initially issue them before you can initiate the buyback. There are no penalties for buybacks.

So when to use debt? And which debt should you use?

Debt can be handy for large expenses, such as building new factories, opening many branches, or designing new vehicles.

You can also use debt to acquire other companies or marques and for buying up shares.

You’ll want to take on debt before you start these projects. High expenses can reduce a bank’s willingness to loan you money.

In most cases, bonds are the best way to go. Bonds may cost you more than a bank loan over the life of the debt, but they offer lower interest rates than a bank loan.

Bonds also have longer payback periods than loans. You pay off a typical loan in 5-8 years, where a bond can easily go for 20 years.

With a loan, you pay off the principle while you make payments. But with a bond, you don’t pay the principle (called the par value) until the maturity date.

By this time, the value of the money is less because of inflation.

Bonds are also much easier to roll over into new bonds. When a bond is close to the maturity date, you can issue a new bond to pay off the par value of your old bond. The same concept works with lowering your interest rates.

On the other hand, loans are easier to get, and you can pay them off quicker than bonds. The payments are more per month, but you won’t have to worry about paying the entire principle in one payment, like a bond. So, generally you won’t have to concern yourself with rolling over loan debt into new loans as you would with bonds.

Finally, use lines of credit for operational costs and minor purchases. Since the balance can sit with minimal interest payments, lines of credit make good sense for stock purchases or last resort debt to keep your company alive.

In summation, you want to apply for debt before you need it. Get approved for lines of credit when your company is doing well.

In most cases, you should do big expenses with bonds. Be sure to monitor when bonds mature (expire). You will need to take out a new bond if you do not have enough cash to pay back the par value.

Loans are good for medium-sized debts that you want to pay off quickly without having to roll them over into new debt at some point in time.

Lines of credit are only good for expenses you don’t want to pay for soon. Typically things like stocks or last resort operational costs fall into this category.