Covenant Monitoring System

One of the key requirements of any Borrowing transactions is comprehensive Financial Covenant monitoring and compliance. Generally such Covenant compliances part of the contractual terms mutually agreed between parties or can be on account of a Regulatory requirement. However such critical compliances needs to be monitored, complied and reported by Organisations in an efficient and timely manner. Usually such tasks are handled in a non-systematic and manual process driven manner, which leads to human error and lapses.Rigour's Covenant Monitoring System (Covenant Plus) addresses such key requirements of Financial Institutions by automating processes and improve system efficiencies.

Following are the key features

  • Rigour's AI-ML engine automates time consuming efforts. If your Organisation follows a manual processes of Copy-pasting terms & conditions into separate excel sheets and monitoring in an unstructured manner, Rigour is meant to solve such time consuming efforts that are prone to human error and lapses.
  • Data from facility termsheet is extracted, saved and indexed in seconds
  • Rigour provides multiple options of Data capture (API based integration, Document upload or Manual entries)
  • Users can now select the relevant Covenants in the system and add monitoring frequency as per compliance requirements
  • System will automatically compute future Covenant testing dates
  • Get alert notifications and keep Team members informed to follow up on Covenant compliance
  • Rigour helps in not only automating Covenant monitoring efforts but also is the ideal Contract Document Management system

How this works

Rigour Covenant Plus typical workflow is demonstrated below

A typical Covenant monitoring exercises starts with underlying Term Sheet of the Financial Transaction.

  • Users can upload their standard termsheet document into Covenant Plus. Our AI ML model will faciliate in extraction of data
  • In Seconds, Users can review the data which is visually convenient to interprete.
  • Users can categorise and customise based on the way they want to track.
  • Each track (covenant) can be set a frequency of monitoring for example quarterly, semi-annual or annual, which then results in automatic Compliance calendar creation and tracking.

Automate the entire journey to a paperless/excel-free documentation which is reduce the effort and error rates. Rigour provides an unique visual experience to digitise your Transaction documents in a way addressing multiple pain points of any growring Financial institution.

Above illustration is a screenshot of effortless journey in Rigour Covenant Plus

Rigour Covenant Plus is tuned to conventional industry practices with regards Termsheet templates followed and provides a comprehensive list of Financial Ratio dictionary.

How Covenant Tracking will work

  • Create Covenant Testing Schedule
  • Based on Facility start date and Testing Cycle, Application will automatically compute the Scheduled dates on which the Covenants needs to be tested

  • Add Covenant Testing Result on Scheduled Dates
  • Capture records of when the Testing was done, Person who has done it and supporting documents.

  • Automatic Alerts before Testing Scheduled Dates
  • Send internal alerts to teams, send Automatic Notifications to Clients for Covenant Compliance Obligations & more

  • Download Facility Wise Compliance Report
  • Download data that will facilitate in Filling Internal or External Compliance Reports. All data will be hosted on cloud 24x7

Powered by AI ML

Our custom ML models work machine readable Termsheet PDF documents. Covenant Plus provides 3 options

  • Upload Termsheet pdf (usually preferred for migration of old loan/debenture facilities)
  • API integration with existing Loan underwriting systems for auto-fetching of facility terms/li>
  • Create or replicate for standard old templates directly in Covenant Plus for each facility
@ Above is an illustration of a typical Term-sheet

Most termsheet documents are not standardised and not system generated, resulting in variability in formatting and documentation nightmare.Using ML and rule based algorithms, Rigour helps in indexing the complex documents for easy referencing in future.