What does the monitoring of financial performance after loans are closed refer to?

The monitoring of financial performance after loans are closed is referred to as Post Closing. This process involves tracking the financial health and operational performance of borrowers to ensure that loans are performing as expected. It helps lenders manage risk and determine if borrowers meet the necessary financial criteria over time.

Post Closing activities can include regular reviews of financial statements, monitoring of payment schedules, and assessing compliance with any covenants established during the loan agreement. This ongoing monitoring is crucial for identifying potential issues early and allowing lenders to take proactive measures to mitigate risks associated with borrower performance.

While other options might overlap in some aspects, especially in terms of compliance and reporting, they focus on specific components rather than the broad practice of monitoring financial performance after the loan is finalized.