Borrower Monitoring

Structured credit oversight across every borrower. Every cycle.

Covenant compliance, repayment patterns, financial performance, document obligations, and collateral status require a structured analytical layer maintained separately from origination and relationship management. Basis tracks every borrower against their facility terms, flags exceptions with analyst rationale, and delivers the control view your credit team needs — each cycle, aligned to your reporting calendar.

Start with a borrower diagnostic View Deck

What this service covers

Covenant compliance status per borrower, per cycle

Repayment schedule vs. actuals and arrears tracking

Financial performance against projections

Document and reporting exceptions register

Collateral and security gap review

Borrowing base and utilisation stress

Management team and key person changes

Analyst-reviewed commentary per borrower per cycle

Control dimensions tracked per borrower per cycle

Monthly

Managed oversight rhythm, aligned to your reporting calendar

Facility types covered from term loans to unitranche

4-step

Diagnostic process — start with a cohort of five to fifteen borrowers

Why this matters

Most credit losses are not surprises.
The signals were visible months before anyone acted on them.

01 — The coverage problem

Analysts carry too many borrowers to monitor each one consistently

Credit teams manage new originations, existing relationships, credit committee preparation, and portfolio demands simultaneously. Consistent, structured monitoring across a full book requires a separate analytical layer. Without it, coverage is event-driven — and borrowers generating the least noise remain under-watched until they surface as a problem.

02 — The covenant drift problem

Covenant pressure builds gradually — and is rarely tracked between reporting dates

Financial metrics erode between reporting periods. Waivers accumulate without tracked rationale. Collateral values drift without structured review. The picture a credit committee sees at each meeting understates the book's actual risk profile if no one is maintaining the control layer between meetings. The divergence compounds quietly until it cannot be ignored.

03 — The reporting gap problem

Receiving financial statements is not the same as monitoring credit

Borrower reporting arrives — some late, some incomplete, some at variance with what the credit paper assumed. Receiving documents is a legal obligation met. The analytical layer required to check what has been received for exceptions, gaps, and performance changes against the original credit basis requires dedicated time and structure that most teams cannot provide consistently.

"The most expensive version of credit monitoring is the one that only happens after something has already gone wrong."

What we track

The full control layer across every borrower.

Every dimension that matters between disbursement and maturity — tracked on a managed monthly cycle, flagged when it moves, and reported in a format your credit team can act on.

Covenant compliance status per facility

Repayment vs. schedule per borrower

Arrears patterns and payment delays

Financial performance vs. projections

Document and reporting receipt log

Outstanding reporting exceptions

Collateral and security status

LTV and collateral value movement

Borrowing base utilisation stress

Management team and key person changes

Waiver log and breach history

Open exceptions and escalation flags

Basis vs. in-house

Managed oversight vs. internal monitoring.

Internal monitoring depends on analysts with competing priorities. Basis maintains consistent coverage regardless of deal flow, team changes, or quarter-end pressure.

Area	In-house / credit team	Basis Partners
Covenant tracking	—Reviewed at reporting dates. Gaps accumulate between periods when team capacity is stretched or staff turn over. Waivers are logged informally if at all.	✓Structured tracking per borrower each cycle. Covenant status, breach flags, waiver log, and upcoming review dates maintained continuously.
Repayment monitoring	—Reactive. Flags surface after missed payments or when arrears reports are reviewed — often weeks later, after the pattern has already formed.	✓Proactive monitoring with trend analysis per borrower. Pattern changes and early warning signals flagged before arrears crystallise.
Financial performance	—Checked at credit reviews and annual covenant tests. Performance drift between reviews is rarely tracked against the original credit basis in structured form.	✓Tracked each cycle against projections from the original credit paper. Variance flags with analyst rationale before the divergence compounds.
Document exceptions	—Chased ad hoc and relationship-dependent. No managed register of what is outstanding, for how long, and from which borrowers.	✓Managed exceptions register per borrower — what is outstanding, when it was due, and the follow-up status tracked each cycle.
Collateral and security	—Reviewed at origination. Ongoing gap tracking is rarely maintained without a dedicated process — perfection issues and LTV drift accumulate unnoticed.	✓Monitored continuously. Security gaps, valuation drift, and perfection exceptions flagged each review cycle with analyst assessment.
Coverage consistency	—Varies with team capacity, origination volume, staff changes, and competing priorities. Quieter borrowers stay under-watched until they surface as problems.	✓Consistent monthly coverage across the full selected cohort. Coverage does not vary with internal pressure, absences, or origination activity.

What you receive

A managed control view. Every cycle.

Borrower performance report

A structured view of each borrower's position against facility terms, projections, and agreed covenants — with variance commentary and trend flags updated each review cycle.

Covenant and repayment status per borrower

Financial performance vs. original credit basis

Open issues and outstanding actions

Covenant and facility register

A structured register of covenant status, breach history, waivers granted, and upcoming review dates — maintained per borrower across every facility in the cohort.

Covenant status per facility, per cycle

Breach and waiver log with rationale

Upcoming review and reset dates

Document exceptions register

A full record of outstanding borrower reporting obligations — what is due, what has been received, what is overdue, and the current status of each outstanding item.

Outstanding obligations per borrower

Overdue items with days outstanding

Follow-up status and escalation flags

Collateral and security review

A structured review of collateral coverage, security perfection status, LTV movement, and any gaps identified since the last cycle — updated each review period.

Collateral coverage and LTV movement

Security perfection exceptions

Gap flags with analyst assessment

Book-level summary view

A fund-level summary of the credit book's position — which borrowers are performing, which are flagged, and where the most significant risks and exceptions sit across the portfolio.

Book health snapshot and risk distribution

Exception and concern flags by borrower

Comparison vs. prior period

CC-ready borrower briefs

Concise, structured briefs on each borrower — suitable for credit committee reviews, portfolio update meetings, and watchlist discussions without same-week preparation.

Performance summary per borrower

Control status and key flags

Recommended actions and next steps

How we start

We begin with a focused borrower diagnostic.

You select a cohort of borrowers.

Choose the borrowers that best represent your monitoring challenge — a mix of performers, watchlist candidates, and covenant-sensitive names makes the diagnostic most useful. Typically five to fifteen to start.

We work from what you already have.

Credit papers, repayment schedules, covenant trackers, financial statements, and portfolio packs. We do not ask you to build new data infrastructure before we start the diagnostic.

We deliver the first control view.

A full analyst-reviewed monitoring output for the selected cohort — covenant status, repayment, performance, document exceptions, collateral, and escalation flags.

You assess the quality before expanding.

Review the output with your team. If it adds value, we expand across the full book. If not, you keep all outputs, frameworks, and monitoring registers regardless.

Your credit judgement stays with you

Basis provides the managed monitoring layer around the credit decisions your team already owns. All performance data and exception flags are structured to support your team's credit judgements with the evidence they need to act with confidence.

Ongoing rhythm

After the diagnostic, we operate as a managed monthly monitoring service. Frequency and scope are set by your book's requirements and reporting calendar — not a fixed package.

No commitment required

The diagnostic produces real analyst work on your actual borrowers. You see the quality before deciding whether to continue. No proposal stage, no commitment beyond the first review.

Start with a borrower diagnostic View Deck