Lending Solutions – Covenant Tracking & Monitoring
The Importance of Covenant Tracking
The entire lending lifecycle is fraught with risks and covenants play an important role in mitigating these. However, lenders often fall short of continuous covenant monitoring. This makes lenders vulnerable to credit risks and defaults.
What Can Lenders Do?
Banks need a holistic covenant monitoring strategy that covers covenants throughout the lending lifecycle. And, post loan-disbursal, they need a tracking mechanism that can ensure proactive monitoring of covenants.