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  • Ascertains that the borrower is not exceeding the borrowing or credit limit per the credit agreement. Limit is typically defined as the total commitment amount less any current outstandings. Limits may exist across various facility type (Loan, SBLC, Banker Acceptances...), and may include currency types.
  • Current credit standings are also checked. If it is below minimum levels per the credit agreement, the borrower may be in default and the bank may no longer have an obligation to advance additional funds.
  • If guarantees exist, the credit worthiness of the guarantors may need to be re-established. The terms of the guarantee ,dollar or percentage specific, borrower or deal specific, drawdown specific, and the guarantee expiration dates are also evaluated and communicated to management, when necessary.
  • If the loan is secured, verification is needed that sufficent collateral exists to cover the entire outstanding.
  • The drawdown is checked for complete documentation requirements. The promissory note is signature verified and the amount, loan type and maturity, type of loan and place of payment are verified. The physical location of the note is also tracked.

Commercial Lending Business Model

LIQ78

Check

Promissory Note

Check Borrower

Collateral

Check Borrower

Guarantor

Check Borrower

Credit Limit

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