Monitor debt ratios and financial security guarantees
Easily manage counterparty risk
The regulator is asking banks for increased controls on all their leveraged transactions (LBO and FSA) and on loans incorporating financial security guarantees. A real ordeal for the banks!
Thousands of files to follow and few solutions to facilitate these controls
Leveraged transactions require annual monitoring of debt ratios in order to measure their evolution and the relating counterparty risk over time. Most corporate loans also benefit from financial security guarantees provided by the borrower. How can these requirements be collected, controlled and tracked?.
How to ensure proper collection of debt ratios in a leveraged financing transaction?
Give the Borrower direct access to the ratios that must be provided. He is automatically alerted before each due date to post the ratios’ values with a certificate from the auditor. The values are then traced so you can measure their evolution and consequently the borrower risk over time.
How to monitor the valuation of financial security guarantees associated with corporate loans ?
The Agency service allows you to register financial securities provided by the borrower, such as pledging of securities. Record all the elements the counterparty must provide in order to automatically notify him for each period of control. The controls are then archived to produce an annual reporting of the portfolio.
How to ensure the constant validity of the guarantees included in the loan?
Automatically be alerted when the guarantee is close to its renewal date limit. Anticipate any declaration to be made to the clerk's office to ensure a constant validity in the event of default. Helded stock, pledging of shares, ... all natures are registrable.