A facility limit tells you how much. Tranches tell you what for.

A development facility is rarely one pot of money. Part buys the land. Part funds the build. Part covers professional fees, and part may never be drawn at all if the interest is serviced rather than rolled up. Development finance lenders know this, but many systems still hold a loan as a single limit and a single balance, leaving the real picture in a spreadsheet beside it.

In Elevations, every facility is divided into tranches, and every tranche carries its own limit, what's been drawn and what's still available.

Defined once, used on every loan. Tranche names are set up on the product, such as Land, Construction or VAT, so every loan on that product starts from the same structure. When a loan is set up, each tranche is given its limit.

The slices always add up to the cake. Alongside your own tranches, Elevations keeps system-managed ones for capitalised fees and rolled-up interest, sized from the headroom the facility leaves. A loan with a single capital tranche gets one automatically. However a facility is cut, its tranches add up to its limit.

Every advance knows its slice. An advance is drawn against a tranche, and the tranche's drawn and available amounts move together as soon as it's confirmed. An advance that would take a tranche past its limit is refused, so the limit isn't something a credit officer checks by hand afterwards, unless an uplift is requested.

Planned drawdowns hold their place. A future advance on the loan schedule can be split across several tranches, and each part reserves its capacity straight away, so the headroom you see already allows for drawdowns you've planned. Change the split and the old reservations are released before the new ones are made. Delete the advance and its capacity comes back.

Fees and interest draw down like anything else. When a fee or a period's interest is added to the loan rather than paid, it draws against its own tranche, so you can see at a glance how much of the facility has gone on the cost of the loan itself.

The result is one facility, divided by purpose, with every penny accounted for. It's the same discipline lenders already apply at credit committee, now carried through to the loan itself.