Covenant monitoring that runs itself.
An Australian private credit lender replaced manual covenant testing with Neo. Borrower packs now arrive, get extracted and tested automatically, and land in front of an analyst for sign-off. 93% of the manual monitoring work is gone.
Every cycle started from a blank spreadsheet.
The credit team knew their borrowers well. The problem was the hours spent getting numbers out of documents before any judgement could happen.
Packs in every format
Borrowers sent management accounts and compliance certificates as PDFs, spreadsheets and email bodies, each in their own layout.
Keyed in by hand
Analysts re-typed each borrower's financials into spreadsheets every quarter. Slow, error-prone, and fragile whenever a format changed.
Covenants tested manually
ICR, LVR and DSCR calculations were rebuilt per loan, with facility terms looked up from agreements each time.
No time for trends
Most of the cycle went on data handling, leaving little time to watch headroom trends or spot a borrower drifting.
Knowledge in people's heads
How each loan was spread and tested lived with whoever owned it, and was at risk whenever someone left.
One pipeline from inbox to sign-off.
Borrowers kept sending exactly what they sent before. Packs are forwarded to a dedicated inbox, and Neo takes it from there: extracting, spreading, testing every covenant against the facility terms, and preparing the monitoring report for an analyst to approve.
Everything is stored in a warehouse in the lender's own environment, with every figure linked back to the page it came from.
Live in six weeks, tested on the past first.
Built on real packs
Neo was set up on the lender's own historic borrower packs from week one, not sample data.
Tested against past quarters
Results were checked against covenant tests the team had already done by hand before going live.
No change for borrowers
Borrowers kept their formats and their email habits. The only change was where the pack was forwarded.
Every loan, one process
Every loan in the book runs through the same pipeline, each with its own facility terms.
Team trained to sign off
The credit team was trained to review, correct and approve each run.
Owned by the lender
The warehouse and audit history sit in the lender's environment.
Before and after, per reporting cycle.
| Measure | Before | With Neo |
|---|---|---|
| Data entry | Keyed by hand | Extracted automatically |
| Manual monitoring work | 100% | 7% |
| Covenant tests | By hand, per loan | Automatic on arrival |
| Source of each figure | Analyst's spreadsheet | Linked to page |
| Analyst focus | Building spreadsheets | Reviewing risk |
| Time to live | – | 6 weeks |
Notes
- 93% is the share of manual monitoring work the credit team no longer does by hand each cycle.
- Client name and portfolio details are withheld for confidentiality.
- We are happy to walk through the build in a demo.
Bring last quarter's statements. Leave with one view.
A 30-minute demo of Neo using the kinds of documents your office already receives. No slides.