Lender covenant reporting

Your agreement's own definitions, not a template

Two loan agreements calling for the same ratio can define it completely differently: one facility excludes a cost the other includes, one references a specific entity's local GAAP figure, one is denominated in euros while a related facility sits in another currency. We build to the exact clause, because a covenant test calculated to the wrong definition is worse than one filed a day late.

The reporting itself

Most facilities call for a monthly or quarterly compliance certificate, and some pair that with a borrowing base certificate under an asset-based structure. We prepare each in the exact format the lender's documents call for, drawn from books closed across every entity the facility covers, on whatever schedule the agreement sets.

Catching a drift before the test date

The real value sits in the weeks before a formal test, not on the test date itself. If margin softens in one entity while receivables slow in another, pushing a leverage or coverage ratio toward its limit, we raise it as soon as the pattern shows up, leaving room for a conversation with the lender rather than an explanation after a breach.

Staying reachable between reports

Between formal periods, we field lender questions and keep the answers consistent with each entity's own local GAAP or IFRS for SMEs figures behind the consolidated number, joining a call if that speeds things along. The lending relationship itself, and any waiver discussion, stays with you. This pairs naturally with 13-week cash flow forecasting for facilities that also expect regular cash visibility.