Although the two terms are often used interchangeably in financial services, within Mansa they mean different things. Understanding the distinction is key for both compliance and reconciliation.

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Disbursement

  • Definition: The release of approved loan funds from Mansa to the borrower’s assigned custodial wallet
  • Purpose: To make liquidity available and trackable under Mansa’s credit facility.
  • Control: Funds remain in the assigned wallet until the borrower decides how to use them.
  • Compliance Role: Disbursement ensures funds are moved into a monitored environment, simplifying regulatory oversight.

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Drawdown

  • Definition: The actual movement of funds from the assigned custodial wallet to the borrower’s operational wallet (or directly into payment transactions).
  • Purpose: To enable clients to use liquidity for specific corridors, payments, or settlement obligations.
  • Control: Triggered by the borrower, subject to utilization reporting requirements.
  • Compliance Role: Each drawdown requires proof of utilization, tying liquidity directly to real economic activity.