1. Commercial Bank & Negative Cash Rules

Commercial banking offers structured liquidity via bank loans. Overdraft fees and overdraft level upgrades have been completely removed:

• No Overdraft Interest Charges: You no longer pay daily interest fees or penalties when your cash balance drops into negative numbers.
• Negative Cash Industry Shutdown: If your cash balance goes below €0.00, all your active factories and production facilities are automatically shut down (isActive = 0).
• Production Paused: While in negative cash, your factories will not produce output or incur maintenance costs. Production resumes automatically once your account balance is restored to €0.00 or positive.

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 (determined by Corporate Scale Tier and Bank Level) and click Take Loan. Funds are deposited instantly into your corporate cash balance.
3. Interest Settlements: Loan interest is calculated per turn cycle. Upgrading your Accounting Department in your Corporate HQ lowers interest rates by 5% per level.
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 Bonds Market

Starting at Scale Tier 2 (Corporation), corporations gain access to the Bonds Investment Desk to invest surplus capital into high-yield corporate bonds:

• Investor Yield: Purchase corporate bonds to lock in reliable passive coupon interest income per turn cycle.
• Capital Preservation: Bonds provide a low-volatility income stream for growing corporate treasuries.

4. 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.

5. 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.