Lender tools

Each loan's covenants and the certificate for the lender, and a cash credit's stock and debtors statement, worked out from your books. Part of Margin Books.

• What are the lender tools?The papers a bank asks for after it has lent to you, worked out from your books.
• How do I add a loan's covenants?In Lender tools, click the loan. Under Covenants, click Add a covenant for each condition in the sanction letter, and choose which it is (the covenants Margin works out).
• Which covenants can Margin work out?Four from the books, and any other condition you check by hand.
• Why is the DSCR "on profit before tax"?Because Margin's books have no income tax line.
• What do Met, Close and Breached mean?Met is within the covenant's limit, Close is met but near the limit, and Breached is past it.
• Will Margin warn us about a covenant?Yes. When a loan's newest certificate has a covenant Close or Breached, Margin tells your company's admins and finance team in the app and by email: "Covenant close to its limit" or "Covenant breached", with the loan's name.
• How do I check a covenant by hand?For a condition Margin can't read from the books, such as "Promoters hold at least 51% of the shares", add a covenant, choose Checked by hand and type What is checked.
• How are covenant certificates made?Margin makes one for each month a loan's covenants are tested, as soon as you lock the month on Books → Close: every month for a monthly covenant, and June, September, December and March for a quarterly one.
• How do I approve a covenant certificate?Open the draft, check the figures (and the Workings where you need to) and click Approve.
• What's in the certificate's Excel file?The certificate itself, ready to print and sign, and the workings behind it, on two sheets: Certificate: your company, the lender and the loan, the date it's tested at, and who approved it in Margin and when.
• How does the stock and debtors statement work?For a cash credit or overdraft, it works out each month how much you may draw.
• How do I approve a stock and debtors statement?Check the drawing power and click Approve. The same people approve as for certificates: admins and those who can lock months.
• How do I add a cash credit or overdraft?In Lender tools, click Add a cash credit or overdraft.
• Who can see, change and approve the lender tools?See: everyone who can see the books, by default admins, leadership, finance and board members. Change: admins, leadership and finance.
• How do certificates and statements reach Galley and the lender?When your company also uses Galley and Margin to Galley is switched on, Margin sends each approved covenant certificate and stock and debtors statement to your data room as its Excel file, as soon as it's approved, and checks again every morning.