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 Loan Dashboard.
Now that you are on the Loan Dashboard you will find that all the loan information that has been added to STRATAFOLIO is organized and can be easily identified. Highlighted below are all of the Loan Covenants recorded in STRATAFOLIO.
In conclusion, keeping track of your loan information in STRATAFOLIO is crucial, as it will give you an excellent way to monitor your loan covenants over time.