Virtual CFO
Lender covenant reporting
Lender covenant reporting calculates and delivers the financial reports a US loan agreement requires, built to the agreement's own defined terms and on the exact schedule your lender expects, with early warning when a trend is heading toward a breach rather than a surprise at the compliance deadline.
13-week cash forecast
Illustrative client · August 2026
USD
- Cash today
- $244,220
- Lowest week ahead
- 239,800
- Largest outflow
- Payroll, 46,300
Illustrative. An example of the document, not a client's figures.
Reporting to the agreement's own language
Loan agreements rarely use a standard definition of EBITDA or leverage; most define specific add-backs, exclusions and calculation methods in the covenant language itself. We build the calculation to match your agreement's exact defined terms, not a generic formula, since a covenant test that is calculated wrong is worse than one that is late.
What gets delivered, and how often
Most facilities require a monthly or quarterly compliance certificate, sometimes paired with a borrowing base certificate for asset-based lending facilities. We prepare these in the format your lender's loan documents specify, calculated from your closed books, and delivered on the schedule your agreement sets, usually within a fixed number of days after month or quarter end.
Early warning before a formal test
The value of ongoing covenant tracking is catching a trend before it reaches the formal test date. If margin compression or a slow receivables collection is pushing a leverage or coverage ratio toward its limit, we flag it as soon as the trend is visible, giving you time to talk to your lender proactively rather than explaining a breach after the fact.
A steady point of contact
Between formal reporting periods, we act as the point of contact for lender financial questions, keeping answers consistent with what was reported. We can join a lender call if that helps, though the lending relationship and any waiver or amendment discussion stays between you and your lender. This work pairs closely with 13-week cash flow forecasting, which most lenders also expect to see on a revolving credit facility.
Questions
Frequently asked questions: Lender covenant reporting
What if our covenant calculation is trending toward a breach?
We flag the trend as early as it becomes visible, so you have time to have a proactive conversation with your lender or adjust the business before a formal test, rather than finding out at the compliance deadline.
Do you calculate EBITDA the same way every lender does?
No, and that is the point. Loan agreements define EBITDA and leverage with their own specific add-backs and exclusions, and we build each calculation to match the exact language in your agreement rather than a generic formula.
Will you talk to our lender directly?
We prepare the compliance reporting package and can join a lender call if it helps clarify a number. The lending relationship itself, including any waiver or amendment request, stays between you and your lender.
What kind of loan facilities does this cover?
Term loans, revolving credit facilities and asset-based lending arrangements with a borrowing base are all common; we build the reporting to whichever structure your facility uses.
What does lender covenant reporting actually include, month to month?
Lender covenant reporting covers covenant calculations built to your loan agreement's defined terms, along with monthly or quarterly compliance certificates in the lender's required format. The work runs inside Excel, Google Sheets, QuickBooks Online, NetSuite or Sage Intacct, the file stays under your own subscription, and a senior principal reviews the output before it reaches you each period.
What if our numbers are trending toward a covenant breach?
We flag the trend as early as possible so you have time to talk to your lender before a formal test, rather than finding out at the deadline.
Do you communicate directly with our lender?
We prepare the reporting package and can join a lender call if asked, but the lending relationship and any waiver discussion stays between you and your lender.
Can you calculate covenants that use non-GAAP adjustments?
Yes. Most loan agreements define EBITDA or leverage with specific add-backs; we build the calculation to match the agreement's exact language, not a generic formula.
What if our records for lender covenant reporting are not up to date?
If your records are behind, we scope a catch-up first so lender covenant reporting starts from a clean, reconciled base. That catch-up is priced and timed separately from the ongoing engagement, so you always know what each part costs.
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Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.