What do covenant compliance records in nCino primarily provide?

Covenant compliance records in nCino primarily provide fields for testing covenant performance, which is essential for managing and monitoring the adherence to loan covenants established in financing agreements. These records allow organizations to track specific metrics and criteria defined in the covenants across various loans.

By utilizing these fields, users can input relevant data, assess performance against agreed-upon terms, and ensure that borrowers are meeting their obligations. This proactive monitoring not only helps in risk management but also provides insights that can inform decision-making processes related to lending practices. The accuracy and up-to-date nature of these records play a critical role in maintaining compliance and protecting the interests of lenders. This is vital for mitigating potential risks associated with loan agreements and ensuring long-term financial health.