A sophisticated LMS implements the following end-to-end architecture:

1. Facility Configuration and Structuring

Credit professionals configure or import critical loan parameters:

• Principal commitment and outstanding amounts
• Interest methodologies (fixed, floating-rate, PIK components)
• Repayment structures and amortization schedules
• Fee structures, covenant frameworks, and collateral specifications

While some platforms offer standardized templates, advanced systems enable granular customization at the individual facility level to accommodate bespoke deal structures.

2. Automated Servicing and Payment Processing

The system's calculation engine manages:

• Interest accruals with precise day-count conventions
• Principal amortization according to schedule types
• Fee calculations and billing
• Payment due dates with business day adjustments

The platform monitors payment receipts, applies them according to contractual waterfall provisions (e.g., fees → interest → principal), and automatically flags delinquencies or shortfalls. Payment schedules dynamically adjust to accommodate floating rate changes, facility amendments, or restructuring events.

3. Comprehensive Investor and Limited Partner Reporting

Enterprise-grade LMS platforms generate sophisticated analytics for investment teams, fund administrators, and limited partners, including:

• Performance metrics (IRR, MOIC) at deal and portfolio levels
• Exposure analysis by industry vertical, geographic region, or risk classification
• Real-time cash flow forecasting and liquidity management
• Regulatory and covenant compliance dashboards

4. Governance, Audit, and Change Management

Institutional-quality systems implement robust governance features:

• Comprehensive change logs for facility amendments
• Multi-tier approval workflows with role-based permissions
• Sandbox environments for scenario modeling prior to production implementation
• Immutable audit trails supporting financial controls and regulatory examination

5. Enterprise Integration Capabilities

Modern LMS architectures interface with adjacent systems:

• General ledger and fund accounting platforms
• Document management solutions (e.g., DocuSign, Box)
• Treasury management and payment processing infrastructure
• Secure investor portals and data rooms