Covenant Analysis

One of the biggest burdens on small businesses is monitoring and meeting debt covenants.  As almost all small businesses need bank financing, a good percentage of lenders will require businesses to meet certain covenants on a monthly or quarterly basis for the loan to remain in good standing. With today's economic environment, lenders are more closely monitoring these covenants to protect their investments. The inability of a business to meet these covenants could cause a loan default which may lead to additional charges, rate increases, or even lenders calling the loan altogether.  This could adversely impact your business and even could cause your business to close forever.

Not only can Allman and Associates prepare these calculations for you to submit to lenders, we can also monitor your business on an ongoing basis to ensure that you meet those covenants when they are due. We can monitor how changes in certain areas of your business will affect covenant calculations so you can take appropriate measures before it is too late.