Term Sheet Review

Learn how facility agents review and make decisions on term sheets

Overview

As a facility agent, you review term sheets submitted by borrowers and decide whether to approve, reject, or request changes. This guide explains the review process and what happens with each decision.

Who Can Use This

      • Facility Agents: Review term sheets and make approval decisions

When This Is Used

Use term sheet review when:

      • A term sheet appears in your Credit Facility dashboard with status FAReview

      • You need to evaluate a borrower's credit facility proposal

      • You want to make an approval decision (approve, reject, or request changes)

Step-by-Step Process

Step 1: Access the Term Sheet for Review

1. Navigate to Credit Facility

      • Log in with your Facility Agent credentials

      • From the left expandable menu, click on Credit Facility

      • Find the term sheet in the Set-up tab

2. Click Review Term Sheet

      • Locate the term sheet with status FAReview

      • Click Review Term Sheet in the Actions column

      • A popup opens showing all term sheet details

Review Term Sheet - FA

Step 2: Evaluate the Term Sheet

1. Review Facility Terms

      • Check requested commitment amount

      • Verify advance rate

      • Review pricing index and margin

      • Check maturity date

      • Review drawdown frequency

2. Review Supporting Documents

      • Download and review collateral profile

      • Check financial statements

      • Review KYC documents

      • Verify collateral data

3. Assess the Proposal

      • Evaluate if terms are acceptable

      • Check if documentation is complete

      • Verify borrower information

      • Consider risk factors

Step 3: Make Your Decision

The Review Term Sheet popup shows three buttons:

Option 1: Approve

When to Approve:

      • All requirements are met

      • Terms are acceptable

      • Documentation is complete

      • Borrower is creditworthy

What Happens:

      • Click Approve

      • Status changes to Accepted

      • Master commitment is automatically created with Draft status

      • Borrower receives notification

      • You can now configure the master commitment

Option 2: Reject

When to Reject:

      • Requirements are not met

      • Terms are unacceptable

      • Significant issues that cannot be addressed

      • Borrower doesn't meet criteria

What Happens:

      • Click Reject

      • Provide a rejection reason

      • Status changes to Rejected (final state)

      • Borrower receives notification

      • Borrower must create a new term sheet if they want to proceed

Option 3: Request Changes

When to Request Changes:

      • Minor issues need addressing

      • Documentation is incomplete

      • Terms need adjustment

      • Additional information is needed

What Happens:

      • Click Request Changes

      • Enter details about what needs to be changed

      • Status changes to CHANGES_REQUESTED

      • Borrower receives notification

      • Borrower can edit and resubmit the term sheet

Review Checklist

When reviewing a term sheet, consider:

Financial Terms:

      • Is the commitment amount appropriate?

      • Is the advance rate reasonable?

      • Are the interest rate terms acceptable?

      • Is the maturity date suitable?

Documentation:

      • Is the collateral profile complete?

      • Are financial statements provided?

      • Is KYC documentation in order?

      • Is collateral data sufficient?

Compliance:

      • Does the proposal meet your organization's criteria?

      • Are there any regulatory concerns?

      • Is the borrower eligible?

Decision Outcomes

Decision	Status Change	Master Commitment	Next Steps
Approve	Accepted	Auto-created (Draft)	Configure facility
Reject	Rejected	Not created	Borrower creates new term sheet
Request Changes	CHANGES_REQUESTED	Not created	Borrower edits and resubmits

Important Notes

      • Approval Creates Master Commitment: When you approve, a master commitment is automatically created with Draft status. You then configure it.

      • Rejection Is Final: Rejected term sheets cannot be resubmitted. The borrower must create a new term sheet.

      • Changes Allow Iteration: Requesting changes allows the borrower to address issues and resubmit.

      • Provide Clear Feedback: When rejecting or requesting changes, provide clear reasons to help the borrower understand what's needed.

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