SERVICES
Loan servicing that keeps recurring credit events accurate and on schedule.
Control notices, interest, fees, principal, cash events and reconciliations across the loan lifecycle.
Overview
Loan servicing is the recurring operational processing of a loan after closing: interest and fees, payment schedules, cash events, notices, principal changes, rate resets, reconciliations and reporting required to keep the facility record and fund books current.
It sits downstream of loan setup and upstream of fund accounting, credit monitoring and investor reporting.
Why it matters
A private-credit portfolio generates continuous events. Prepayments, resets, fees and amendments can trigger accounting and cash changes, and generic fund administration often lacks sufficient loan-level granularity.
Common operating challenges
- Expected interest/fee cashflows differ from receipts.
- Rate resets or amendments are processed late.
- Loan notices are disconnected from accounting.
- Manual event calendars create missed obligations.
- Multiple providers maintain inconsistent loan data.
What we deliver
| Capability | What it covers |
|---|---|
| Recurring events | Interest, fees, principal and payment schedules. |
| Notice control | Capture agent/borrower notices and required actions. |
| Cash processing support | Track expected/actual cash. |
| Rate/reset management | Maintain benchmark/spread changes under approved terms. |
| Loan reconciliation | Compare loan record, agent and fund accounting. |
| Reporting support | Provide loan-level data for fund/investor reporting. |
Our role can be configured around a defined operating mandate: a recurring managed service, a technology-enabled client workflow, or a co-sourced model in which execution and review are split between Kelton, the client and appointed providers.
Inputs, workflow and outputs
Typical inputs
- Loan master
- Agent / borrower notices
- Rate benchmarks
- Bank cash
- Payment statements
- Administrator accounting data
- Amendments
Controlled workflow
| Step | Activity | What happens |
|---|---|---|
| 1 | Schedule | Identify upcoming loan events. |
| 2 | Receive notice | Capture/classify event documentation. |
| 3 | Calculate / validate | Apply approved loan terms and expected cash. |
| 4 | Process / coordinate | Update loan record and provider instructions. |
| 5 | Reconcile cash | Compare expected and actual. |
| 6 | Close & report | Publish evidence and updated data. |
Typical outputs
- Loan event calendar
- Interest/fee calculation support
- Expected-vs-actual cash report
- Loan reconciliation
- Notice/payment control log
- Fund-reporting data feed
Controls and review
The workflow is designed so that automation does not obscure responsibility. Routine processing can be standardised; exceptions, material judgements and formal approvals remain visible and attributable.
- Approved loan-term source.
- Rate/fee calculation validation.
- Payment exception escalation.
- Dual review of material events.
- Complete event chronology.
Responsibility boundary
We provide operating support and does not make lending decisions or interpret legal rights beyond authorised client/adviser instructions.
Technology & expertise
Our operating model combines specialist knowledge with controlled technology. Domain experts define the rules, review logic and exception criteria; the technology layer makes the workflow repeatable, traceable and scalable.
Technology
- Loan event engine.
- Rate/schedule automation.
- Notice extraction.
- Cash reconciliation.
- Exception and SLA tracking.
Expertise
- Loan lifecycle operations.
- Interest/fee/principal processing.
- Private-credit accounting interfaces.
- Amendment/prepayment operational handling.
Expert knowledge is converted into controlled rules, SOPs, checklists, validation tests and exception criteria so that the operating standard is embedded in the workflow rather than dependent on one individual.
Delivery models
| Model | How it works |
|---|---|
| Managed Operations | We execute the agreed recurring workflow. Client and appointed-provider approvals remain explicit. |
| Technology Enablement | We implement the data, workflow and control layer for the client team to operate. |
| Hybrid / Co-sourced | Execution and review are shared through a documented responsibility and escalation model. |
| Transition & Implementation | We mobilise the workflow during a launch, provider change or target-operating-model transition. |
Frequently asked questions
Why separate servicing from fund administration?
Loan-level events are the asset-level operating engine and must flow accurately into fund accounting/reporting.
Can it support floating-rate loans?
Yes, using controlled benchmark/reset data and approved contractual rules.
Can servicing be co-sourced?
Yes; managers can retain decisions while outsourcing repetitive processing/control.
Discuss Loan Servicing
Start with one workflow, one operating issue or one provider transition. We will map the current process, responsibility boundaries, required data and a practical first engagement.