Monitoring loan covenants - making it convenient?
I am responsible for loan covenants monitoring and compliance for a portfolio company.
There are several loans and yet another is coming.
Loans are complex and number of various covenants is huge. Covenants are of all types:
- To do something by X date
- To do something every X months or every Xth date of each quarter/year
- To notify about certain events within X days whenever they happen
- To get bank's approvals for certain events whenever they happen
I was wondering how can it be organizied conveniently (so that I could follow the upcoming events and have history of past covenants successfully dealt with)
I mean, I can definitely do an Excel table in random form, but I am wondering, maybe you have some good template at hand and willing to share? Or maybe you know some piece of software that can be used to make things easier?
Thanks for suggestions.
What's wrong with a calendar?
We use a pretty sophisticated covenant calendar in excel, however I would probably be scolded for sharing it, even though I made it. Just make your own in excel. It's easy and shouldn't take you that long.
Create a blank calendar and a sources section at the top. Have conditions set for each type of loan or "event" that needs to be addressed. I would also add in dates so that they automatically flow to the right areas. There won't be any complex equations as long as you know what is due. Just a lot of setting cells equal to and calculating off other cells that run from the source. You could also just put in a today() cell for the date, and have other cells change a color when the date warrants a notification.
It might take you awhile to make the first template, but it'll be worth it in the long run. One thing I've learned over the past 2 years is that it's much better/easier to create these sorts of things yourself.
This makes no sense to me. "create"? a blank calendar? does this mean do NOT use a template calendar? what does "a sources section at the top" mean? "Add in dates"? isn't that what the calendar is for? automatically flow to the "right areas"? what right areas? what does that mean? there won't be any complex formulas SO LONG AS??? so long as what? you know what is due? put in a () today cell for the date? what date? in what cell? in a calendar day? which day? where/when does the calendar come in to play?
why not just post YOUR covenant calendar so everyone can see the set up?
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