Overview
Version 19.0 strengthens Covarity's core borrowing base and covenant monitoring capabilities. Seasonal inventory limits for the borrowing base certificate (BBC) flow from preset configuration through certificate review into calculations, and new covenant types—step covenants and between-threshold tests—let you model structures that previously required workarounds.
The release also refreshes financial statement and ratio workflows. Administrators choose ratio context or statement context by turning Ratio Input on or off. Statement context has a modernized interface, clearer Full, Ratio, and Covenant input modes, and smarter handling of prior-period data when ratios are added or changed over time.
Additional improvements help keep risk ratings in sync with upstream systems and expand optional Comprehensive Results metrics.
This release also includes several frequently requested enhancements:
- Seasonal inventory limits (BBC)—define inventory caps by season for borrowing base certificate calculations
- Step covenants—configure covenants that change at defined steps or milestones
- Between-threshold covenants—test whether a value falls within a customizable range (for example, a current ratio that must stay between 1.5 and 3)
- Refreshed financial statement entry—ratio or statement context, with Full, Ratio, and Covenant input modes
- Smarter prior-period calculations—missing historical values are no longer treated as zero when adding or changing rolling ratios
- Risk ratings integration—bulk data load to keep ratings in sync (complements the Borrower Risk Ratings API); easier to update from the borrower homepage
- Redesigned ratio administration—formula editor with autocomplete and bracket matching; ratio templates to prefill common definitions when creating a ratio
- Select Headers bulk change—select multiple rows on the Upload Assistance Select Headers step and apply a type change in one action
New Features
Seasonal Inventory Limits for the Borrowing Base Certificate
Seasonal inventory caps have been a frequent request for both the borrowing base certificate (BBC) and the borrowing base formula (BBF). Version 19.0 delivers seasonal inventory limits for BBC—so inventory caps that change by season can flow from preset configuration through borrower setup and certificate review into calculations.
Support for seasonal inventory limits in BBF is planned for a future release.
For borrowers whose eligible inventory varies by season, certificate calculations need to reflect those limits—not just a single cap year-round. You can define seasonal inventory caps that change by season at the preset level, for individual borrowers, and during BBC review.
- Define seasonal limits at the preset level, with a record of changes over time
- Configure and review class limits, margined value limits, and overall limits for individual borrowers
- View, enter, adjust, and test seasonal limits during BBC review
- Limits are reflected automatically in borrowing base certificate calculations
Covenant and Early Warning Configuration
Covenant setup is central to ongoing portfolio monitoring. Version 19.0 adds support for common covenant structures that were difficult to represent in earlier releases, alongside a refreshed configuration experience with clearer navigation and a more consistent layout.
- Step covenants: Configure covenants that change at defined steps or milestones—such as remediation schedules that tighten over time.
- Between-threshold covenants: Set up and report on covenants that test whether a value falls within a customizable range—for example, requiring a current ratio to stay between 1.5 and 3, with thresholds you define for your portfolio.
- Borrower covenant list: View covenants across all of a borrower's loans from a single page—useful for verifying setup or when covenants span multiple facilities.
Comprehensive Results Reporting
The Comprehensive Results report can now include additional metrics that help lenders understand exposure and collateral position at a glance:
- % of Commitment Outstanding
- Loan-to-Collateral
Each metric is optional and can be enabled independently in Deployment Settings.
Scanned PDF Processing
Many financial documents arrive as scanned PDFs or image-based files that cannot be read as text. Version 19.0 introduces scanned PDF processing, allowing Covarity to extract content from these documents and continue through Upload Assistance and your normal review workflows—without reformatting or re-keying data outside the platform. This capability is available as a preview for select pilot customers only; it is not yet generally available. Contact your Covarity representative if you are interested in participating.
Improvements
Financial Statement Entry
Entering and reviewing financial statements is part of daily monitoring for many teams. Version 19.0 refreshes the financial highlights experience—with administrator control over how data is entered and clearer workflows for everyone who inputs or adjusts statement data.
Administrators can turn Ratio Input on or off in Deployment Settings for the entire deployment, which selects ratio context or statement context for financial statement entry. In ratio context, all statement tabs show the same ratio-oriented input view. In statement context, each tab shows that statement laid out to match the financial statement template—now presented in a modernized interface.
- Full, Ratio, and Covenant input modes: In statement context, choose Full, Ratio, or Covenant input mode—enter all statement lines, only lines that feed ratio calculations, or only lines that feed covenant tests. In ratio context, switch between Ratio and Covenant to enter all ratios or focus on those used for covenants and early warnings.
- Smarter handling of prior-period data: In statement context, when using Covenant or Ratio input mode, Covarity no longer treats missing prior-period values as zero when calculating previous-period or rolling ratios. If a field was not required in an earlier period, the associated ratio is not calculated until enough periods of data have been collected. This is especially important when adding new rolling ratios to an existing borrower or migrating a portfolio to a new covenant standard.
- Adding Machine: In statement context, the Adding Machine is now available on the financial statement input page—the same convenience already available in ratio context.
Ratio Administration
Managing ratios—creating definitions, editing formulas, testing calculations, and organizing groups—should not require navigating a patchwork of different page styles. Ratio administration has been refreshed for a more consistent and efficient experience, particularly for teams maintaining large ratio libraries.
- Improved ratio editor: The formula editor has been redesigned with autocomplete, bracket matching, and other enhancements that make it easier to build and validate ratio definitions.
- Fewer page changes: Confirmations for actions such as deleting a ratio now appear in place, so you can complete common tasks without navigating away to separate confirmation pages.
- Start with a Template: When creating a ratio, choose from a list of common ratio templates to prefill the name, formula expression, and related settings—then adjust as needed before saving.
Risk Ratings
For many lenders, Covarity is where relationship managers, risk teams, and operators check a borrower's status day to day—even though the system of record for risk ratings often lives elsewhere. Ratings are typically established during origination or annual review and maintained in upstream lending systems, then need to stay visible where monitoring happens.
Version 19.0 improves how risk ratings are kept current and visible in Covarity—so the rating your team sees during review and portfolio reporting reflects what was decided upstream. Teams with automated integration pipelines can continue to use the Borrower Risk Ratings API; bulk data load complements that with an option operations staff can run directly—on a schedule from upstream exports or as a manual bulk upload when a one-time update is enough.
On the borrower homepage, the right-hand panel continues to show the current risk rating alongside the latest published review results—a quick status check for relationship managers. Manual updates from this panel are easier for individual borrowers when integration is not in play.
- Bulk data load integration: Update risk ratings for multiple borrowers in a single load—a complement to the Borrower Risk Ratings API that fits how many operations teams already work with BDL. Use scheduled loads to keep ratings in sync automatically, or upload a file when you need a manual bulk update.
- Visible in portfolio reports: Risk ratings appear on reporting schedule, loan, BBA, and ratio portfolio reports—alongside the covenant and collateral data your team already works with.
- Updated configuration: Set up risk rating categories and assign ratings from refreshed configuration pages.
- Clear incorrect assignments: Remove or blank out a risk rating when a borrower has not yet been evaluated or a rating was applied in error.
- Flexible categories: Category names are optional where your business rules allow.
Deployments that do not use risk ratings can disable the feature entirely in Deployment Settings, removing it from the user interface and reports.
Refreshed Configuration Pages
Many configuration and review pages have been updated to match the contemporary look and feel used elsewhere in the application, making navigation more predictable. Two-column layouts on many of these pages now reflow when the screen is magnified or the window is narrow, instead of forcing horizontal scrolling or hiding content off-screen—as part of ongoing accessibility improvements across the lender application.
Other Improvements
Upload Assistance
- Bulk change on Select Headers: Select multiple rows and apply a type change in one action—no more updating rows one at a time on large documents.
- Undo column break identification: Made a mistake identifying column breaks? You can undo and try again.
- Multiple identifier columns: Receivables documents with more than one ID column are supported.
Currency and Debtor Insurance Identification
- Sort by receivables ID: Data can be sorted by receivables listing ID column.
Bulk Data Load
- Download the source file: Retrieve the original file used in a bulk data load for verification or troubleshooting.
Integration
- User lifecycle webhooks: Subscribe to webhook events when borrower or lender users are created, activated, or deactivated—so upstream systems can stay in sync when user status changes in Covarity.
Reviews
- Overdue reviews stand out: The borrower review list shows an indicator when a review is past due, so nothing slips through the cracks.
Localization
For deployments using French, financial terminology has been updated for Canadian usage. Commitment is now translated as Limite de la facilité—the term for the maximum authorized credit amount.
Bug Fixes
- Fixed an issue where margined values stopped calculating after clearing a form on the BBC test/input page.
- Fixed an issue that prevented some notification emails from sending when recipient addresses differed only by letter case.
- Fixed an issue where active reporting schedule counts could be incorrect on portfolio reporting borrowers.
- Fixed a display issue in autocomplete search results when entity names included hyphens.
- Fixed a display issue in the report viewer on certain pages.