Skip to main content

B6. Conditions precedent

A condition precedent (CP) is something that must be true before any money can move. Every financing case carries eleven standard conditions:

  1. Due diligence
  2. Credit approval
  3. KYC and anti-money-laundering checks (identity checks on the executives)
  4. Borrower or sponsor contribution
  5. Definitive documents (the signed agreements)
  6. Security perfection (the security is properly registered)
  7. Insurance
  8. Permits and licences
  9. Environmental and social checks (ESG)
  10. Offtake
  11. Account domiciliation (the money goes through a controlled bank account)

For equity and venture capital cases, security perfection and offtake are presumed not applicable.

No case can move to Ready to disburse until every condition is resolved.

Task B6.1: Record a condition as satisfied​

Who can do this: staff who can work on the case. Your data scope must include it. Check your role in the roles table with your administrator, as the exact list is not set out in the reference notes.

Before you start

  • Have the evidence ready. For example, the cooperative's registration certificate, the executives' identity checks, or the signed contribution letter.

Steps

  1. Open Financing cases and select Open financing case for Zaria Grain Growers Cooperative.
  2. Scroll to Conditions precedent.
  3. For Due diligence, select Record evidence decision.
  4. Choose Satisfied.
  5. In the evidence field, describe what you reviewed and where it is kept. For example: "Registration certificate and member list reviewed against originals, 27 October 2026."
  6. Confirm.
  7. Repeat for each condition.

What happens next

  • The condition shows Satisfied, with your name, the date and the evidence description.
  • Recorded evidence is kept on the case. Corrections are made by adding a new record, not by changing the old one.

If the evidence is not good enough, choose Evidence rejected and say why. The condition stays open.

Task B6.2: Waive or mark a condition not applicable​

You cannot waive a condition on your own. A different finance approver must decide.

Who can do this: staff who can work on the case can request the decision. Only a different Finance Approver, with two-step verification, can decide it.

Steps

  1. Open the condition, for example Permits and licences.
  2. Select Request independent decision.
  3. Choose Waive this condition or Mark not applicable.
  4. Write the reason. For example: "Rain-fed maize on existing farmland does not need a permit under the state rules. Reference checked."
  5. Confirm.

Deciding the request

  1. The approver is notified that a decision is waiting.
  2. The approver opens the case and reads the reason.
  3. The approver selects Approve (or Reject) in the request.
  4. The condition changes to Not applicable or Waived, with both names recorded.

Example from the walkthrough: Ibrahim Sule requests that the permits condition be marked not applicable. Yusuf Garba reads the reason and approves it.

Common problems

  • The button says "Request independent decision" but you cannot request it: the condition is already resolved, or your role cannot work on the case.
  • The approver is you: DFFMS blocks it. A different approver must decide.