> For the complete documentation index, see [llms.txt](https://quantixfinance.gitbook.io/quantixfinance-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://quantixfinance.gitbook.io/quantixfinance-docs/credit-lifecycle/monitoring-and-servicing.md).

# Monitoring and Servicing

An active loan is monitored for its whole life, not spot-checked at intervals and otherwise left alone. The delegate collects the reporting agreed at underwriting — monthly financials as a baseline, though the specific cadence and depth are set per facility — tracks covenant compliance against the terms agreed at structuring, and, where the facility is collateralized, monitors coverage continuously against the required ratio rather than at scheduled review points alone. Coverage, loans at risk, and any unrealized loss are reflected in the pool's metrics as conditions change, not only at period end — a lender looking at pool data mid-cycle sees the same picture the delegate is working from, not a stale snapshot from the last reporting date.

Servicing also covers the ordinary mechanics that keep a facility running day to day: interest accrual against the outstanding balance, scheduled payments as they come due, and, for revolving facilities, the drawdowns and repayments a borrower makes within their approved limit over the life of the facility. None of this requires lender action — it's the operational layer beneath the credit relationship, handled so that a performing loan simply performs without needing to be re-approved or re-verified at every step.

The aim of monitoring, underneath all of this, is early warning. A covenant breach, a coverage ratio drifting toward its floor, or financials that come in weaker than expected are all signals meant to surface while there's still room to act — restructure, request additional collateral, or intervene in some other way — well before the facility reaches the point of a missed payment. By the time a payment is actually missed, monitoring has already done its job or already failed to; the value of this stage is in what happens before that moment, not in response to it.