> For the complete documentation index, see [llms.txt](https://qiro.gitbook.io/qiro-vaults/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://qiro.gitbook.io/qiro-vaults/stakeholders/borrowers/borrowing-process.md).

# The Borrowing Process

How a facility goes from first conversation to funded and repaid.

Every Qiro facility follows the same path. Each stage completes before the next begins.

### 1. Screening

An initial conversation establishes whether the [hard gates](/qiro-vaults/stakeholders/borrowers.md) are met. These are bright lines, checked before any analysis begins.

If the gates are met, Qiro confirms the diligence list and indicative facility shape.

### 2. Diligence and underwriting

Qiro underwrites every borrower directly. See [What to Prepare](/qiro-vaults/stakeholders/borrowers/what-to-prepare.md) for the materials requested at this stage.

The process covers financial analysis, business plan review, and management interviews, followed by credit scoring, risk metrics, and an internal rating produced through Qiro's underwriting platform. It concludes in a **Credit Assessment Memo** documenting the credit decision and its basis.

The outcome is binary: approved onto the borrower set, or declined. Approval establishes that you *can* be funded, not that you have been.

### 3. Structuring

An approved borrower is structured into a facility: loan type, tenor, rate, security package, and covenants. A bankruptcy-remote SPV is established as the legal lender for the relationship, and legal documentation is completed before any capital moves.

Security is taken against identified collateral, typically your own receivables, at security cover between 1.0x and 1.5x.

### 4. Allocation

The vault's [Risk Curator](/qiro-vaults/stakeholders/risk-curator.md) decides which approved borrowers are funded from which vault, and in what size. Approval and allocation are separate decisions made by separate parties: Qiro determines who is eligible, the curator determines who is funded.

Allocation depends on vault capacity, concentration limits, and how your facility fits the existing portfolio.

### 5. Drawdown

Capital reaches you through your Deal SPV, under the facility documentation.

Drawdown mechanics vary by facility type. Revolving structures, payment financing in particular, draw and repay on short cycles, so capital recycles continuously rather than sitting outstanding for a full term.

### 6. Repayment and monitoring

You repay principal and interest on the schedule in your documentation.

Monitoring runs for the life of the facility: borrower performance, covenant compliance, and receivables quality. A covenant breach gives Qiro the right to trigger early repayment or enforcement before deterioration becomes a default.

Facilities that perform are typically renewed or upsized; the process above is heaviest the first time.

***

To begin, see [Get in Touch](/qiro-vaults/about-us/get-in-touch.md).