top of page
This is the process where the funds are ermitted to the borrower. The amount will be calculated, currency and payment method determined, and the funds sent out. The funds may be sent directly to the borrower or to the agent bank (in the case where the lender is not the agent).
  • Per the credit agreement, the currency is determined to be in U.S. dollars or in some foreign currency. If FX, the conversion rate from dollars to the currency, and the U.S. dollar equivalent of the drawdown, must be recorded. This supports the process the revaluation of postings to the G/L.
  • The amount disbursed to the borrower is based on the type of loan, interest bearing or discounted. However, for purposes of calculating availability under the commitment, the face amount is always used. 
  • The method of payment is generally set up at during credit agreement negotiation. The borrower may have special instructions for an individual drawdown. For loans made on an offering basis, the method will be agreed upon at the time of the request. 

Commercial Lending Business Model

LIQ81

Determine Currency

of Remittance

bottom of page