 |
Strategy |
Business Deals and Loans
Do you take the money or hold to the high road?
Many cities run into some finacial problems during the upstart years. You want your city to keep growing but money is running low and revenue is flat. Alternatively, you could be a struggling middle age city straining under debt. You need to generate revenue fast to avoid going into debt. At those times, a shady offer might pop up in your News Ticker offering you a way out of the economic doldrums. You could be offered a Maximum Security Prison, a Toxic Waste Disposal Plant, a Casino, or a Megamall. In exhange for permission to build the offered building, you will be given several hundred simoleons a month. This easily accumulates into several thousand simoleons a year which is a lot of money. Don't just jump into these deals just yet. As in most things that sound to good to be true, there is a catch. These buildings aren't exactly wanted by your Sims. The Maximum Security Prison and Toxic Waste Disposal Plant are heavy polluters. The Casino brings in hordes of crime. The Megamall drives small business out of business. It's worth it to go ahead with these buildings if you really need the money. However, in good financial times, it's advisable to bulldoze these buildings since they're only good for money.
Some of you, however, wish to hold the high ground in this area. No matter how much money others offer, you will not be bought out. But you still need money to jumpstart growth. That's where loans come in. Loans can come in sizes from 5-25 thousand simoleons. This is a large cash infusion which you can use to build more zones, replace that aging power plant, build that stadium your Sims want, etc. But with loans, you have to pay them back WITH interest. You'll pay 20% interest on your loan over 10 years. If you can generate 6000 simoleons with a 5000 simoleon loan, you'll break even. Take out loans only if you need it. The debt burden can be a pain on city revenue. However, growth and revenue generated by the big project you used your loan on can offset the burden. Don't get in the deadly spiral of debt where you must take out loans to pay off oustanding loans. One way to excape this death trap is in the early stages where you can take out a sizable loan to spur growth and revenue to put you back in the black. Alternatively, you can snatch up business deals to keep your city afloat long enough to pay off the debt. Just don't sink too deep in the nasty spiral. You're only allowed a maximum of 10 loans.
Business deals and loans are two ways to keep your city financially sound over your years as Mayor. Each one has its own set of advantages and disadvantages so choose wisely.
Back to Strategy Page
