Above the approved limit
The commitment is larger than the limit set at approval. Coco stops it.
Solutions
Agentic Lending
No credit commitment runs on a stale approval.
Coco checks the loan file at the moment of commitment, not the moment of approval.
Approval and commitment happen at different times.
An agent approves a facility against the file as it stood. By the time the commitment executes, the file has moved. A valuation has expired, or a condition on the approval no longer holds. The lending system accepts the request because the request is valid. Upstream controls see the request. They do not see the file behind it. Once credit is committed, unwinding it is slow and costly.
Coco reads the file before credit is committed.
Coco sits between the agent and your lending system. At the moment of commitment, Coco checks the current state of the file against your rules. If a condition has lapsed, the facility is held for review. Your credit team sees which condition failed and why. Every decision is recorded with the rule and the file state Coco used.
Other checks before credit is committed
Conditions still open
A drawdown is requested before every approval condition is met. Coco holds it for review.
Too much exposure to one borrower
The new facility pushes exposure to a borrower or group past your concentration limit. Coco blocks it before it books.
