Create a Credit Facility

A credit facility line is an agreement that allows the borrower to draw down funds according to their own needs, up to the agreed amount and during a specific period. In credit facilities, each drawing works similarly to a standard loan, using its own characteristics (start and maturity dates, payment frequency, interest rate, etc.) and workflow (e.g. a drawing can be early repaid). Different kinds of associated fees are supported as well.

 

Navigate to the Debt & Derivatives Application
  1. Log in to your Fairways Debt account, e.g. https://login.financeactive.eu/.
  2. Select a customer account.
  3. Navigate to Applications Applications.png > Debt & Derivatives.

 

Create a Credit Facility
  1. Click Add Transaction > Facility > Credit Facility.

DebtDerivatives_Transaction_Facility_CreditFacility_EN.png

  1. 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. 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/exported from/to another system.
Limit Maximum allowed amount.
Currency Reference currency.
Borrower Borrowing entity in the system.
Lender Can be either internal (an entity in the system) or external (a commercial bank).
Facility Type

Revolving or non-revolving.

Note: Once the credit facility is created, you cannot edit its facility type.

DebtDerivatives_Transaction_Facility_CreditFacility_Transaction_EN.png

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.

DebtDerivatives_Transaction_Facility_CreditFacility_Dates_EN.png

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.

Initial Interest Rate

Initial rate of the custom index.

Spread Spread (or margin) value in percentage.
Day Count Used to compute the day fraction of an interest accrual period.
Frequency Frequency of the payments.
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. 
Amortization Type Amortization mode. 
Interest Rounding Rule

Rounding rule used on interest amounts.

Principal Rounding Rule Rounding rule used on capital amounts.

Note: When you create a drawing in that credit facility, the drawing default values pre-fill the New Credit Facility Drawing form, but remain editable.

DebtDerivatives_Transaction_Facility_CreditFacility_Drawing_EN.png

  1. Enable Show Details after Validation to automatically open the new credit facility profile once created.
  2. Click Apply to create the credit facility.

CreditFacility_Create_EN.png

The new credit facility displays in the draft portfolio.

DebtDerivatives_Transaction_Facility_CreditFacility_Created_EN.png

 

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.

 

Rounding Rule

Note: Leave the field blank to apply the default rule: nearest cent.

Field Description
Nearest unit Nearest superior or inferior unit.
Rounding Up Nearest superior unit, no decimals.
Rounding Down Nearest inferior unit, no decimals.

Example

No Rounding Rule / Nearest Cent Nearest Unit Round Up Round Down
0,13 0 1 0

 

 

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