Managing covenants on a deal

Covenants are specific terms and conditions outlined in loan agreements that borrowers must adhere to, typically related to financial ratios, operational requirements, or other performance metrics.

Covenant tracking is essential for commercial lenders as it enables proactive risk management by monitoring borrower compliance with loan agreements, mitigating risk, while providing insights into portfolio performance.

You can create, edit, and delete free text and automated covenants. You can also update the status of the free text covenants.

Note: Ensure that:

• Full access is provided to the following Deal Management permissions:

• Portfolio Page & Deal Creation

• Deal Details, Deal Overview

• Covenants

This topic includes the following sections:

• Creating a custom text covenant

• Creating an automated covenant

• Editing a covenant

• Deleting a covenant