Corporate Loan Disbursed
Disbursing a term loan to a corporate borrower after drawdown conditions are met.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Corporate Loans Receivable (Term Loan) | Asset (+) | 2,000,000.00 | - |
| Cash / Borrower Settlement Account | Asset (−) | - | 1,960,000.00 |
| Deferred Arrangement Fee | Contra-Asset (+) | - | 40,000.00 |
💡 Accountant's Note
The arrangement fee is deferred under IFRS 9 EIR method and amortized over the loan term. The gross loan is the financial asset. Corporate loans often have conditions precedent (CPs) that must be satisfied before drawdown.
Practitioner & Systems Framework
💻 ERP Architecture
In SAP CML (Commercial Mortgage Lending) or FS-CML, the loan contract is linked to a credit facility limit. Drawdown triggers a posting against the facility. In Oracle FLEXCUBE CL module, conditions precedent are tracked as checklist items that must be cleared before the system allows disbursement.
⚠️ Audit Flags
Auditors verify all conditions precedent (CPs) were satisfied and documented before disbursement date. Relationship Manager sign-off, Credit Committee or Board Credit Committee approval (depending on amount), and legal documentation (signed facility letter, security documents) must all predate the disbursement entry.
📄 Required Documentation
Signed facility letter, board resolution from borrower, security perfection certificates (mortgage, pledge), conditions precedent checklist sign-off, drawdown request from borrower, and SWIFT payment confirmation.
Automate this entry with the JEH Accounting Suite
Stop doing manual entry. Our VBA-powered ERP automatically generates your ledgers, Trial Balance, and Financial Statements.
No Subscriptions. Own your data.
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.