In this guide 6 sections
Track each borrower on one file that holds the sanctioned limit, every drawdown, the conditions with their dates, and the security. Headroom is then the limit minus what is drawn. GullySystem builds this as a custom system, because business lending is not a single EMI schedule.
Start with the sanction, not the loan
A business borrower holds a limit, not a single loan. The limit has a tenor, a price and conditions. Everything else is drawn against it.
Record the sanction first. Put the limit, the tenor, the pricing and each condition on the borrower’s file with a due date. The rest of the setup hangs from that record.
- Sanctioned limit and tenor
- Pricing and any review date
- Each condition with its due date
- Directors and related borrowers
Make every drawdown a record
Each request to draw is a small decision. It is checked against the limit, the documents behind it and the due date. Today that check often lives in an email.
Give each request its own entry with the invoices or stock it relies on, the headroom at that moment and the approval. A later query then has a trail.
Keep security and conditions on a calendar
Insurance, stock statements and security documents each lapse on a date. A lapsed condition found at review is a late find.
List each one with its owner and date, and show what is lapsing this month. The list is short, which is why it works.
- Insurance and renewal dates
- Stock or debtor statements due
- Security documents and values
- Conditions not yet met
Match repayments the same day
A business pays from several accounts and sometimes for several invoices at once. Match each bank credit to a borrower and an invoice as it arrives.
Keep the credits that cannot be matched in a short list with a name beside each. A suspense list nobody owns grows quietly.
See exposure across a group
Related companies often borrow under separate files. Link them to one group, so the total owed by a promoter group reads in one place.
Credit then answers a new request with the whole picture. The first version can be a simple group field on each borrower, widened later.
Borrower file checklist
A one-page sheet for each borrower listing the limit, tenor, pricing, conditions with dates, security with values, drawings to date and the group it belongs to. Fill it for your ten largest borrowers. The blanks show what your records do not yet hold.
Open a blank worksheet to printQuestions owners ask
Is there a ready product for business loans?
Not as a finished product. The loan management product covers repayment schedules for smaller lenders. Limits, drawdowns against invoices and group exposure are built around the way your book works.
Does it decide whether to lend?
No. Your credit team decides. The software holds the file, the sanction, the conditions and the reports, so the decision rests on one record.
Can it connect to Tally?
Not as a live link. An export for your accountant can be written during implementation, and it is quoted as separate work.
Where should a lender start?
With the borrower file and the limit, for the largest borrowers first. Drawdowns and repayment matching follow once the file is trusted.