A cash facility is an agreement established between a financial institution –usually a bank– and a customer. The cash facility in Fairways Debt sets a maximum loan balance that the borrower is allowed to maintain for a specific term. The borrower can draw down or pay back on the line at any time between the agreed effective date and maturity date, within the fixed maximum amount.
The net position of a cash facility can be either creditor or debtor.
Interest payments are computed on a daily basis, based on the outstanding balance amount and taking into account all the drawings and paybacks.
Navigate to the Debt & Derivatives Application
- Log in to your Fairways Debt account.
- Select a customer account.
- Navigate to Applications
> Debt & Derivatives.
Create a Cash Facility
- Click Add Transaction > Facility > Cash Facility.
- Complete the form with all relevant details.
Note: Fields marked with an asterisk * are mandatory.
| Field | Description |
|---|---|
| Reference Code |
Unique reference of the transaction. Identifies the transaction in the portfolio. Note: The reference must be unique among all the entities managed in the account. |
| External Reference Code | Used by external systems to identify the transaction. Used when transactions are imported from or exported to another system. |
| Capitalized Interest | Defines whether the interest amount should be paid at the payment date, or added to the principal (and included into the outstanding balance for the following periods). |
| Limit | Initial maximum amount allowed. |
| Currency | Reference currency. |
| Party | Entity in the system involved in the transaction. |
| Counterparty | Can be either internal (an entity in the system) or external (a commercial bank). |
| Cash Facility Mode | Cash facility type. |
| Field | Description |
|---|---|
| Trade Date | Date at which the transaction has been traded. From that date, the system takes the transaction into account as an item of the portfolio. |
| Start Date | Unadjusted start date of the transaction. |
| Maturity Date | Unadjusted maturity date of the transaction. |
| First Roll Date | Unadjusted date of the first payment. |
| Field | Description |
|---|---|
| Index |
Name of the index used to calculate the rate value, e.g. FIXED for fixed rate. Note: The field beside displays depending on the index selected. |
| Interest Rate |
Fixed rate value in percentage. Note: This field displays depending on the selected index. |
| Initial Interest Rate |
Initial rate of the custom index. Note: This field displays depending on the selected index. |
| Spread |
Spread (or margin) value in percentage. Note: This field displays depending on the selected index. |
| Day Count Convention | Used to compute the day fraction of an interest accrual period. |
| Field | Description |
|---|---|
| Frequency | Frequency of the payments. |
| Interest Calculation Adjustment | Adjustment mode for the interest calculation. The nominal start and end dates of the accrual period will be adjusted accordingly before computing the interest amount. |
| Payment Date Adjustment | Adjustment mode for the payment date. |
| Last Stub Period | Defines whether the last period should be a short or long stub when it does not match the selected frequency. Short End Stub by default. |
Enter the required custom attributes, if any.
- Enable Show Details after Validation to automatically open the new cash facility profile once created.
- Click Apply to create the cash facility.
The new cash facility displays in the draft portfolio.
Adjustment
Adjustment modes define how the system rolls dates in case of holidays in the calendar.
| Field | Description |
|---|---|
| Unadjusted | Not rolled. |
| Preceding | Rolled to the previous business day. |
| Following | Rolled to the next business day. |
| Modified Preceding | Rolled to the previous business day, only if that day occurs in the same month. Otherwise, rolled to the next business day. |
| Modified Following | Rolled to the next business day, only if that day occurs in the same month. Otherwise, rolled to the previous business day. |
| End of Month (unadjusted) | Rolled to the last day of the month. |
| End of Month (preceding) | Rolled to the last day of the month, then adjusted to the previous business day. |
| Modified Following (year) |
Rolled to the next business day, only if that day occurs in the same year. Otherwise, rolled to the previous business day. |