Facility rules

• Eligibility criteria: the aging cutoff, cross-aging threshold, permitted jurisdictions and currencies, obligor exclusions, and dispute treatment.
• Advance rates: the percentage applied to eligible receivables, sometimes tiered by collateral type or obligor quality.
• Concentration caps: per obligor limits, often tiered by rating, plus any special limits negotiated for named customers.
• Reserve formulas: the stress factors, horizons, and ratio definitions behind the dilution, loss, and yield and servicing reserves.
• Trigger and covenant levels: the delinquency, default, dilution, and DSO thresholds that change funding when breached.
• Definitions underneath all of the above: what counts as defaulted, how DSO is measured, which day count applies.

Every one of these is negotiated, which is why they belong to the facility, not to the portfolio. The same receivables data produces different certificates under different agreements.

Take one pool with $50,000,000 of gross receivables. Facility A, an asset-based revolver, makes invoices ineligible at 90 days from invoice date, caps obligors at 10 percent, and advances 85 percent against the result. Facility B, a securitization, cuts eligibility at 60 days past due, tiers concentration limits by obligor rating at 10, 6, and 3 percent, and funds net of dynamic reserves that came out at 29.5 percent last period. On the same data, facility A supports roughly $29,000,000 of funding and facility B roughly $27,000,000, and the invoices excluded under each are different invoices. Neither number is wrong. Each is the output of its own rules.

This is the core reason a generic AR report can never serve as lender reporting. The rules are the product of a negotiation, and the calculation has to run the negotiated version.

In most treasury teams the facility rules live implicitly inside spreadsheet formulas: the 90 in an IF statement is the aging cutoff, the 0.85 in a cell is the advance rate, the concentration logic is a pivot someone rebuilds monthly. That embedding has three failure modes. Nobody can read the rules without reverse engineering formulas. Amendments require finding and editing every cell the old parameter touched, and a missed cell applies two different cutoffs in the same certificate. And there is no history: once the formula is edited, the prior rule is gone, so past certificates can no longer be reproduced.

Configured rules invert all three. The parameters are legible, an amendment is a single deliberate change with an effective date, and every version is retained. Olycor stores each facility's rules as versioned configuration: the aging basis, thresholds, caps, tiering, reserve formulas, and definitions, applied deterministically each period, with every certificate stamped with the rule version that produced it. When your agreement is amended, you change the rule once, and the change itself becomes part of the record.