Do you want to understand what a Loan Covenant is and if you have one? In this Knowledge Base Article, we will discuss what Loan Covenants are and how to identify them.
Defining a Loan Covenant
The first step in identifying the covenants of a loan is understanding what a loan covenant is. A loan covenant is a mutual agreement between the lender and the borrower on what standards must be maintained by both parties. Examples of loan covenants are:
- Debt Coverage Ratio
- Loan to Cost
- Loan to Value
Your loan documents will spell out the specific agreements around any and all metrics you agreed to.
How to Track Loan Covenants in STRATAFOLIO
When tracking the loan covenants, the first step is to go to the Finance tab on the left-hand navigation. Once the Finance tab is open click on the Loan button. After doing that, it will take you to the All loans page.
Now that you are on the All Loan page you will find that all the loan information that has been added into STRATAFOLIO is organized and can be easily identified. Highlighted below you can see all the Loan Covenants recorded in STRATAFOLIO.
In conclusion, it is important to keep track of your loan information in STRATAFOLIO, as it will give you an excellent way to monitor your loan covenants over time.
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