🤝Pledge Path Proposal
Pledge Path Proposal enables you to easily run a borrowing base on a facility that may not yet exist. Proposal is useful when a facility is first being evaluated and may require numerous iterations.
When your facility is live and you are ready to begin managing transactions and surveillance, you can upgrade your facility from Proposal to Pilot.
Proposal is specifically designed to run a borrowing base and iterate on a facility. To manage your facility comprehensively, use Pledge Path Pilot.
Creating a Proposal
Creating a Facility
To create a new proposal, click New Facility from your home page
Next, give the facility a name, select an organization. You can always rename your facility.
Two facilities in the same organization cannot have the same name
After a facility has been successfully created, you'll be directed to the borrowing base section of that facility, which should be empty since you haven't run a borrowing base yet.
When you open an empty facility, you will be taken to a simple wizard in which you upload a model and tape and run a borrowing base.
Uploading a Model
A model consists of the eligibility criteria, concentration limits and advancing rates for your facility. It also contains calculations that other parts of the model can reference. For instance, you can define a variable like "FICO over 700" and use that in eligibility criteria.
A model also defines bespoke groups you can use in summaries.
Model onboarding coming soon
Once you have a model, you should see it in your models section. As with tapes, you can rename, delete and add notes to the model.
Model Rules
If you click into the model name, you can see a visual representation of the model rules. Rules are grouped as calculations, eligibility, concentration and advancing.
You can scroll through the rules and see the rules being applied. Note that each rule type has different requirements. For instance, a concentration limit requires a comparison (e.g., exceeds, does not exceed), while a calculation does not.
You can write notes on a rule by clicking the ⋮️ icon (see the notes section for more information).
You can see a pop-up of any rule by clicking the ⤢ button on the top right of a rule.
When you expand a view, you'll see a popup with the rule details along with a larger view of the rule attributes. You can also browse through older versions by selecting from the History dropdown.
When you change to an older version, you'll see the prior version of the rule highlighted with a yellow box around the attributes that changed compared to the latest version.
Uploading a Tape
To upload a tape, navigate to the Tape section of the facility, and click New Tape.
Select a file and name the tape. You can always rename the tape at a later point.
Tape schema editor is coming soon
After your tape has been uploaded, you will see the tape listed under Tapes. You can delete, rename or download the tape from the hamburger menu on the left. You can also attach notes to the tape. See the notes section for more details.
Running a Borrowing Base
Now that you have a tape and a model, you can run a borrowing base. Go to the Borrowing Base tab and select the + to run a new borrowing base.
This will display a pop-up where you enter an as-of date and select the tape and model you want to use.
Applying Waivers
You can apply waivers here. If you expand the waivers sections, you'll see the individual rules of the selected model. You can then turn off individual rules for the borrowing base run. Waived rules will be tagged as waived in the borrowing base summary output.
After you have run a new borrowing base, you'll be taken to that borrowing base page. Here, you will be able to view your borrowing base inputs, a summary, and detailed information on groups specified by the model. You can also delete, rename, and apply notes to the borrowing base. The borrowing base is also available in Excel format.
Analyzing a Proposal
Loan Introspection
You can see the loans that are excluded based on eligibility criteria or breach concentration limits by clicking into the loan count number in the borrowing base summary.
You can click either the total count or the deduped count. The deduped count excludes loans that fall into multiple buckets to avoid double counting them.
The loan introspection popup will the filtered loan tape used for that borrowing base run along with columns calculated by Pledge Path to the right. The loan id and category will be pinned to the left.
You can switch between seeing all the in the offending category or just the deduped loans. The columns used to derive the rule will be pinned to the left next to the category. You can also search for columns by name or filter on just the calculated columns produced by the model.
Comparing Two Borrowing Bases
Proposal allows users to compare borrowing bases with other borrowing bases or reconciliation files. In the borrowing base section, click the compare icon.
This will display another dropdown that lets you choose what to compare against.
For example, in the scenario below, total balance is 17.2 million, and te prior balance was 16.9 million for a difference of +346,091.
If you want to swap what's being compared, click the swap button between the two borrowing bases, and it will swap the before and after.
You'll also see the different inputs highlighted in yellow. In the example above, the tape is highlighted yellow. If you hove over it, you'll see the prior tape was from 2024-04-01.
Frequently Asked Questions
How Do Notes Work?
Every component of Pledge Path Proposal has editable notes associated with it.
You can apply notes to a facility, model, model rule, tape, and borrowing base. You can access notes by clicking the 🗨️ icon wherever present, or selecting "Notes" from the hamburger menu of an item.
Notes support markdown, which means you can add styling and structure to the notes. You edit the panel on the left and see a preview of the styled note to the right.
You can also choose to only show the editable version or the styled version by selecting the buttons on the top right of the editor.
How Do Deletions Work?
When you delete a facility, you can no longer access it. If this was done by mistake, contact support and we'll restore it for you. When you delete a tape or model, you won't see it in the table of tapes or models. You also won't be able to run a new borrowing base with it as an input. But if you had already run a borrowing base, you'll be able to see the tape or model, although it will be tagged as deleted.
You can still click into the model, however you will be warned that the model has been deleted.
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