✈️Pledge Path Pilot
Pledge Path Pilot is a comprehensive suite of tools to manage your credit facility. It includes all the features of Pledge Path Proposal, but allows you to manage multiple draws from a single facility. It lets you define triggers and a waterfall and allows you amendments and waivers.
Users often start by generating a proposal with Pledge Path Proposal and then upgrade their facility proposal to a facility when their facility goes live. To upgrade, reach out to us.
Creating a Brand New Pilot Facility
When you open your facility in Pilot for the first time, you'll see no closed transactions. Select Create Transaction.
Then select a transaction type and transaction date.
New Pledge Transaction
Your first transaction should be a Pledge as your facility does not yet have any pledged assets and you'll want to add them.
In the transaction page you'll see the transaction type, date and status in the top header.
You'll see Transaction Date has already been set when you selected the new transaction type. You can always edit it.
The next step is to run a borrowing base. You can upload new tapes or models here as well.
Running a Borrowing Base
The first thing you want to do is run a borrowing base.
Running a borrowing base for a Pilot facility is identical to that of Proposal. For information on running a borrowing base, see Pledge Path Proposal - Running a Borrowing Base.
Once the run has completed, you'll be taken to the borrowing base summary page.
The summary page will look nearly identical to the summary page in Proposal. For details about the summary page, see Pledge Path Proposal - Analyzing a Proposal.
This is the borrowing base now associated with the transaction. You can also compare the borrowing base with prior runs. The borrowing bases are grouped by whether they were generated from within this transaction, or outside (either another transaction or within Proposal).
To continue, click Continue on the bottom of the page or Set Transation Amount on the left
Setting Transaction Amount
After you have run a borrowing base and applied it to the transaction, you'll want to set the amount you're drawing or repaying in this transaction.
Just click the Set Remaining Available to draw the entire amount available to you. Since this your first transaction, you'll also want to set the maximum facility amount.
Pilot lets you define multiple liability accounts to draw from. If you don't segregate your transaction amounts into multiple accounts, just use the default Committed account. For more information on accounts, see Accounts section.
If your transaction amount is larger than the max amount, you'll see a warning. Other warnings include a warning when Transaction Amount is greater than the Remaining Availability or when Ending Facility Balance is negative.
Setting Account Balances
The next step allows you to set the account balances. Here you can input additional funding put into asset accounts like the Collection account. You can skip over this step if there is no activity in those accounts.
Reviewing Transaction
The final step is to review the transaction. In this page you'll see a summary of the transaction.
Some rows will have eyes on the right that you can click into to see details of that record. For instance, clicking on Transaction Amount will show you the details of the transaction amount.
When you're ready to close the transaction, click Close Transaction. You can always re-open it to make edits.
Only open transactions can be edited. To edit a closed transaction, re-open it, make the edits and re-close it
Transaction Inventory
When you run a borrowing base or reconciliation inside a transaction, it will be added to the inventory. From the inventory you can access the borrowing bases' model and loan tape.
To get to the transaction Inventory, click the Inventory tab.
In the example above, there are two borrowing bases that have been run within the transaction. The relevant borrowing base is tagged as latest.
You can click into the borrowing base, which will take you to the borrowing base summary page. The header of the summary will indicate whether this is the latest borrowing base, a stale one or a reconciliation.
From here you can view the model and download the loan tape used for the borrowing base.
History
The History tab will have a list of all actions performed in a transaction.
For borrowing base and reconciliations actions, you can click into them to see respective artifact.
Waterfall
To record a waterfall, create a new transaction and select Waterfall as the transaction type.
As with Pledge, Removal and Borrowing Base, you'll first want to run a borrowing base. The only difference is you'll likely want to set the intra-period collection deposit. This represents the amount accumulated in the collection account throughout the period. This will be used to pay down the waterfall, although you'll also be able to inject funds as well.
Next you can review the borrowing base and continue to the waterfall section.
Here you'll choose how to distribute the collection proceeds you input when you ran the borrowing base.
On the top you'll see you borrowing base amount, your starting facility balance and your defict, the amount you need to repay the lender. This number will automatically be input in the Lender Principal row.
Next put in your various waterfall elements.
To edit the asset accounts, see Accounts section. To edit the waterfall distributions, see Waterfall Model section.
Once you're happy with the waterfall distribution, hit Save and perform a final review of the transaction.
Dealing with Multiple Transactions
Once you have multiple transactions, Pilot offers you several safe-guards to ensure transactions are consistent.
Re-Opening Transactions
If you have three closed transactions, 1 -> 2 -> 3, you can only re-open transaction 3. The reason is that making any edits to 2 will effect the starting balance in transaction 3. So if you want to re-open 2, you must first re-open 3 and only then reopen 2.
Deleting a Transaction
Once a transaction is closed, you cannot delete it. To delete a transaction, you must first open it.
To delete a transaction, go to the facility's Transactions section, click the hamburger icon on the left and click Delete.
Out of Date
Suppose you have three transactions 1 -> 2 -> 3, and you can re-open both 2 and 3. You then make edits to 2 and close it. Now transaction 3 is still open, but when you go into it, you'll notice an Out of Date warning telling you that the starting balance needs to be updated.
In this example, we updated the prior transaction which caused the starting balance on this transaction to be out of date. To update the starting balance, click the wrench icon to the right of the warning. This will udpate the starting balance and log the update in your History.
Pilot Settings
Pilot settings are accessible on the side panel of a Pilot facility.
Here you can edit asset and liability accounts and waterfall model.
Accounts
Asset Accounts
Asset accounts are accounts used to pay the waterfall. By default, every Pilot facility has a single account, Collection. To add accounts, click the + icon. You can also re-order accounts with the up / down arrows.
If you have an open transaction and you update accounts, you'll see an Out of Date warning telling you accounts have changed, and you can optionally choose to update the accounts
Liability Accounts
Liability accounts work exactly the same way. Each liability account represents a single credit line in your facility. As with asset accounts, changing liability accounts does not change closed transactions. If you have an open transaction and update a liability account, you'll see an Out of Date warning that allows you to update the accounts.
Waterfall Model
Waterfall model can be edited like accounts. You can also reorder the priority of payments.
You can also define a Sink. This is a liability or asset account that receives the proceeds of this distribution.
Pilot Summary
After a Pilot facility has at least one transaction, the Summary tab will now be populated.
Transactions Over Time
In the summary above there are nine transactions, three pledges and the rest waterfalls.
The top shows the last transaction date, last repayment (or draw) amount, the ending facility balance, max facility amount and ending availability.
These values are plotted just below. Hovering over any of the values will show you the exact value. You can also choose to hide any series by clicking it in the legend.
Eligibility Criteria and Concentration Limits Over Time
Below that you'll see the summaries over time. This is the same summary for each transactions' borrowing base run with the most recent being on the right.
Below that you'll see sections for Eligibility Criteria and Concentration Limits. This will show you either the deduped loan count or deduped balance for each transactions' borrowing base run.
To toggle between showing the deduped count or deduped balance, click the dropdown just above the table.
For concentration limits, you can also see Actual Balances or Actual Percents of the loans that are breaching this limit. When viewing Actual Percents, you'll see the percent over the limit, with yellow and red values indicating nearly breaching and breaching.
You can also click into the loan count to see the breaching loans for each transactions' borrowing base run. For more information on loan introspection, see Pledge Path Proposal - Loan Introspection.
Frequently Asked Questions
How do I promote my facility to Pilot?
How can I view my Pilot facility in Proposal?
Yes. All Pilot facilities will also appear in Proposal fund table.
How does my Pilot facility relate to Proposal?
In the context of Pilot, proposal can be seen as inventory and model management.
Everything you run in Pilot is also available in Proposal. So for instance, if you run a borrowing base for a transaction, the borrowing base will show up in Proposal under Borrowing Bases.
Think of Proposal as a global inventory across all transactions and even things that were created outside of a transaction.
Why can't I re-open this transaction?
Only the most recent closed transactions can be re-opened. To re-open a closed transaction that has a closed transaction after it, re-open the latest transaction first. For more information see Out of Date.
Can two transactions be on the same date?
Yes. Each transaction will show up independently on the Pilot Summary page. The order of the transactions will be determined by which transaction was closed first. Out of date restriction applies as well.
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