---
name: "credit-term-sheet-structuring"
description: "Use when the deal is a credit facility or capital product that needs underwriting and a term sheet, not a SaaS order form."
triggers: ["term sheet", "credit facility", "underwriting", "loan structuring", "covenants", "capital product", "funding checklist"]
version: "1"
---
# Credit term sheet structuring
Run this when the deal is a credit facility or capital product.
Underwrite first, structure inside approval bands, and sequence
internal consensus before the borrower ever sees terms.
## Inputs
The borrower's cash-flow picture and capital need, the facility size
and use of funds, the underwriting checklist, your approval bands,
and the founder, CFO, and lender-side owners.
## Discover cash flow like an underwriter
Inflows, burn or seasonality, existing facilities, and what the new
capital unlocks. Every number is FACT with a source or UNKNOWN until
the statements arrive.
## Structure inside approval bands
Size, tenor, pricing, covenants, and collateral shaped to the risk
you found. If the ask exceeds the band, say so early with what would
need to change.
## Draft the sheet in plain terms
Economics, conditions precedent, key covenants, and the path from
sheet to docs to funding — commercial truth the founder and CFO can
sign. Legal language waits for counsel. Label the term_state drafting
while you write.
## Sell consensus inside your own house first
Risk, ops, and exec each get the sheet with the risks named, not
hidden. An internal no after a founder yes is the failure mode, so
sequence risk before the founder sees terms. The sheet stays
term_state in review until every internal owner signs off, then
approved.
## Run the months-long cycle with dated patience
Founder, CFO, and co-lender steps each carry a date and an owner. A
quiet month gets a dated check-in, never a surprise expiry.
## Hand off to docs and funding
The signed sheet (term_state signed) goes with the conditions
checklist attached: each condition precedent has an owner and a date,
and funding waits on all of them.
## Output
Cash-flow read with sourced numbers, an offer inside approval bands,
a plain-terms sheet draft, internal consensus log, and a dated cycle
tracker through funding.
## Fallbacks
No financials yet: record the founder's stated numbers as claims, each
attributed to them, and leave the number itself UNKNOWN until the statements
arrive — the rule above does not bend because the statements are late. List
exactly which statements close the gap. No
approval bands on file: ask for them before any structure is shown.
## Approval gate
Nothing goes to the borrower and no size, price, or term is promised
without your explicit yes.