Credit Facilities Overview
Learn what credit facilities are and how they work in the platform
Overview
A credit facility is a lending arrangement where a borrower can draw down funds asneeded, up to a pre-approved limit. In Intain Markets, credit facilities involveborrowers proposing terms via term sheets, facility agents reviewing andstructuring the facility, and lenders approving and funding drawdowns. This modulecovers the complete credit facility workflow from term sheet creation to fund disbursement.
What Credit Facilities Are
A credit facility is a flexible borrowing arrangement that allows borrowers to accessfunds incrementally rather than receiving everything upfront. Unlike traditionalloans where you receive the full amount at once, credit facilities provide a pre-approved borrowing limit that you can draw from as needed through funding requests.
Credit facilities involve multiple components that progress through a structured workflow:
• Term Sheets propose the facility terms
• Master Commitments define the complete facility structure
• Funding Requests request specific drawdowns
• Funding Notices document approved drawdowns and coordinate fund transfer
Purpose and Use Cases
For Flexible Borrowing - Borrowers can access funds as needed rather thanreceiving everything upfront, reducing unnecessary borrowing costs.
For Structured Lending - Lenders can provide capital through structuredarrangements with proper oversight. Each drawdown is reviewed individually.
For Ongoing Relationships - Credit facilities support ongoing relationships betweenborrowers and lenders. Facilities remain active over time, allowing multipledrawdowns.
For Controlled Disbursement - Lenders maintain control over fund disbursementthrough individual drawdown approvals.
Key Components
Term Sheets - Initial proposals that borrowers create to request credit facilities.Term sheets outline key terms like maximum facility amount, interest rates,repayment terms, and other conditions. They must be signed electronically (AdobeSign) and submitted to the facility agent for review.
Master Commitments - Finalized credit facility agreements that define thecomplete facility structure. They're automatically created when term sheets areapproved by the facility agent. The facility agent then configures lenders, facilityrules, and other parameters before submitting for lender approval.
Funding Requests - Specific requests to draw down funds from an active facility.Borrowers create funding requests when they need funds, specifying the amount,funding date, purpose, and uploading collateral addendum. Each request must bereviewed and approved by the facility agent.
Funding Notices - Official documentation for each approved drawdown. They'reautomatically generated when funding requests are approved. The facility agent e-signs for each lender individually, and each lender can see the funding notice oncethe facility agent has e-signed for them.
Deal Modelling - Configuration of the facility parameters and calculations. After amaster commitment becomes active, the facility agent sets up deal modellingbefore funding requests can be created.
How Credit Facilities Work
1. Term Sheet Creation (Borrower)
The borrower logs in and navigates to the Credit Facility section from the leftexpandable menu. The dashboard shows term sheets and master commitments. Click Term Sheet Setup at the top right, which shows two options: Create viaWizard or Upload Signed
In Create via Wizard, a popup appears where the borrower enters term sheetdetails (requested commitment amount, advance rate, margin, pricing index,maturity date, drawdown frequency, etc.) and clicks Create Draft . An Adobe Signpopup opens for the borrower to sign the term sheet. Initial status is Draft , and aftersigning it changes to BorrowerSigned.
After signing, a Submit to FA popup appears. If the borrower submits, the statuschanges to FAReview . If they cancel, they can submit later using the Submit TermSheet action in the dashboard.
Term Sheet Creation - Issuer
2. Term Sheet Review (Facility Agent)
The facility agent logs in and navigates to the Credit Facility section. Thedashboard has top tiles and a table below with Set-up
and Active Facilities tabs. Inthe Set-up section, term sheets are listed, and under approved term sheets, mastercommitments appear as a dropdown.
For term sheets in FAReview status, the action column shows Review Term Sheet .The facility agent clicks this to open a popup where they can view details,
download attached documents, and make a decision:
• Approve : Status changes to Accepted , master commitment is automatically created
• Reject : Status changes to
Rejected
• Request Changes : Status changes to CHANGES_REQUESTED ,
borrower can edit and resubmit
3. Master Commitment Configuration (Facility Agent)
When a term sheet is approved, a master commitment is automatically created with Draft status and appears as a dropdown under that term sheet. The action shows Create Facility.
The facility agent clicks Create Facility to open a comprehensive popup withmultiple sections (Basic, Parties & Accounts, Economic & Fees, and more, endingwith Review & Create).
Create Master Commitment Facility
In the Basic section, the facility agent selects whether this is a single or multiplebranch master commitment.
In the Parties & Accounts section, the facility agent adds lenders that willparticipate in this facility.
If multiple
branch is selected, a Create Sub-Facility button
appears in the Review& Create section. The facility agent can create
sub-master commitments. A dropdown at the top of the popup allows switching
between sub-facilities and the main facility. Sub-facilities can only include
lenders selected in the main facility, and no two sub-facilities can have the
same lenders.
Everything in this popup is auto-saved as the facility agent enters data. Whencomplete, the facility agent clicks Create Facility to finalize. The mastercommitment status changes to PendingLenderApproval and is shared with the selected lenders.
4. Lender Approval
Lenders log in and navigate to the Opportunities section from the left expandablemenu. They see the main master commitment (if single) or the sub-mastercommitment assigned to them.
The action shows Review & Approve . The lender clicks this to open a popup wherethey can review all tabs and details of the facility.
Credit Facility - Lender Approve
If satisfied, the lender clicks Approve
& E-Sign . An Adobe Sign popup opens for the lender to sign. After
signing, the master commitment (or sub-master commitment)moves to the lender's Credit
Facility tab.
After any one lender approves and signs, the master commitment status changes to Active.
5. Deal Modelling (Facility Agent)
After the master commitment becomes active, it appears in the facility agent's Credit Facility section under the Active Facilities tab.
The facility agent clicks Set Up Deal to open the deal modelling screen. There's a Delegation button if the facility agent wants the admin to do this on their behalf.
The deal modelling screen has multiple sections in the left menu that need to befilled. After completing all sections, the facility agent goes to the Review sectionand clicks Create . The Facility Setup Status changes from In Progress to Completed.
6. Loan Mapping (Borrower)
After deal modelling is complete, the borrower sees the master commitment in theirCredit Facility section. The Map Loans
action button is now enabled (along with Funding Request).
The borrower clicks Map Loans to see a screen showing mapped loans and totals.Click Add Loans to Facility to open a popup showing loans. Only loans with mintedNFTs have enabled checkboxes. The borrower selects loans, clicks Next , then clicks Map . An error appears if a selected loan is already mapped to a different facility.
7. Funding Request (Borrower)
The borrower clicks Funding Request to open a popup where they enter:
• Draw amount
• Funding date
• Purpose of funds
• Draw currency
• Upload Collateral Addendum
Click Review to create the funding request (status: Draft). Click Submit to submit tothe facility agent for review (status: FAReview).
Funding Request Creation - Issuer
8. Funding Request Review (Facility Agent)
The facility agent sees the funding request in the Credit Facility section. The action shows Review Funding Request .
The facility agent clicks this and can:
• Approve : Funding notice is generated with status Pending Token Generated
• Reject : Status changes to Rejected
• Request Changes : Status changes to CHANGES_REQUESTED
No e-sign is required for funding request approval. After clicking Approve , thefacility agent clicks the Approve button
on the funding notice.
9. Funding Notice E-Sign (Facility Agent)
After approving the funding request, a funding notice is generated. The fundingnotice shows E-sign (0/n) where n is the
number of lenders.
The facility agent clicks E-sign and signs the document for each lender individuallyusing Adobe Sign. Each time the facility
agent signs, the count updates (1/n, 2/n,etc.). As each lender's e-sign is completed, that lender can see the funding notice in
their Credit Facility section.
Funding Notice Details - FA
10. Lender Fund Transfer
Lenders go to the Credit Facility section where they see Review Funding Notice .They open the funding notice, select the payment method, and after payment is
complete, click Confirm and Settle.
After confirmation, tokens are transferred and the amount is transferred to the borrower.
Confirm and Settle - Lender
Important Points to Know
Term Sheet E-Sign Required - Borrowers must sign the term sheet via Adobe Signbefore submitting to the facility agent.
Auto-Creation of Master Commitment - When a term sheet is approved, themaster commitment is automatically created. You don't create it manually.
Sub-Facilities for Multiple Lenders - If multiple branch is selected, the facilityagent can create sub-facilities to assign different lenders to different sub-facilities.No two sub-facilities can have the same lenders.
Deal Modelling Before Funding - The facility agent must complete deal modellingbefore borrowers can raise funding requests.
Only NFT-Minted Loans - Only loans with minted NFTs can be mapped to mastercommitments for credit facility transactions.
E-Sign for Each Lender - The facility agent e-signs the funding notice for eachlender individually. Each lender can see the funding notice once their e-sign iscompleted.
Lender Confirms Fund Transfer - After the lender transfers funds, they clickConfirm and Settle to complete the process.
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