Credit Lines and Limits

Credit Lines Management

Credit Lines Management is mainly about credit facilities. These can be granted to the company by banks, but also by the company itself in its function as in house bank to the affiliated companies. The aim of such intercompany credit lines is to limit the use of the financial resources made available. Depending on its creditworthiness, a company receives lines of credit from the bank on current accounts (overdraft facility), which make it possible to keep accounts in debit and obtain additional liquid funds.

Trinity TMS functions at a glance

  • Creation and management of lines, e.g. for the use of
    • Current Accounts
    • Loans
    • Commercial Papers
    • Guarantees
    • Letters of Credit
    • mixed reference values
  • Current information about available financial headroom
  • External or internal counterparties
  • Representation of syndications/consortia
  • Categorisation as
    • unconfirmed/confirmed/until further notice
    • Under negotiation/blocked/terminated/expired
    • Revolving
  • Historization of utilisation over time
  • Calculation of commissions and fees
  • Flexibly adjustable accounting periods
  • Consideration of different business day conventions
  • Support of various interest rate calculation methods
  • Inclusion of lines and commissions in liquidity planning
  • Mapping in any currencies
  • Due date radar and resubmission
  • Audit-proof, multi-stage processing workflows
  • Portfolio allocation
  • Attachment of documents
  • Collateral management
  • A wide range of evaluation options
  • Ready-to-use reports

Limit Management

The establishment of limits serves to monitor compliance with framework requirements, e.g.

  • how many USD a foreign exchange trader may trade per day with a credit institution (trader limit) or
  • how high the maximum sum of liabilities to a banking group should be (volume limit) or
  • the maximum losses that may occur due to fluctuating foreign exchange rates before appropriate countermeasures are to be taken (score limit).

Limits are therefore not the granting of financial resources, but an instrument for controlling specifications and processes. The definition of limits and reference values in a treasury management system should be as flexible as possible. Used correctly, limit monitoring can effectively support a company's treasury. The functions are particularly helpful for the operation of an in-house bank.

Trinity TMS functions at a glance

  • Definition and control of limits related to
    • freely selectable financial instruments and/or
    • dealers/companies/partners and/or
    • volumes (currencies) and/or
    • results (profit/loss, line utilisation etc.)
  • External and internal counterparties (in-house bank)
  • Individually definable attribution factor
  • Totalling according to gross or net method
  • "valid-from" logic for ease of use
  • Audit-proof, multi-stage processing workflows
  • Personal allocation of the presentation of results
  • A wide range of evaluation options
  • Ready-to-use reports


Maximum transparency and risk reduction

  • Current overview of line utilisation and free headroom
  • Integration into liquidity planning and financial status possible
  • Equal information level for all stakeholders
  • Ongoing observing of limits
  • Reduction of unwanted actions and conflicts


Revision security:

  • Logging and historization of changes over time
  • Adjustable addressees for messaging
  • Limits can be assigned to individual users, instruments, companies
  • Workflows based on predefined rules, dual control principle


Time and cost savings

  • Quick information and up-to-date overviews


Process optimisation

  • Simple control of specifications


Credit-lines, guarantee-lines, line-utilisation, financial-headroom, limits, risk-of-loss, trader-limit, currency-limit, governance, guide-lines, monitoring


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