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Commercial Lending Business Model

Receive

Notification

Coord

w/Treasury

Adjust

Availability

Post

to G/L

Get

COF

Generate

Advice

Advise

Billing

Charge

Fee

Adjust

Availability

Adjust

Availability

  • Lender is notified by borrower, agent bank or assignor of the intent to borrow. Size, pricing option and other data, per the credit agreement, accompanies the request. 
  • Coordination with the lenders Treasury dept is required several days before the actual drawdown to allow time to match-fund the loan. Break Funding issues may occur. Variable rate typically do not requre coord.
  • Validation represents all efforts needed prior to servcing the request. Availability, credit compliance and collateral requirements and other factors are evaluated.
  • Credit availability is adjusted to manage commitment limits. Fees on used and unused portions of the facility may also be calulated. Facility amounts must also be adjusted for losing competitve loan bids. 
  • G/L postings are made based on payment method, branch, loan type, SIC code, etc..
  • Actual drawdowns can be single or multiple funded. Multiple funded drawdowns can have,for example, different percentages for Libor and Base rates.

LIQ75

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