Financely supports borrowers, sponsors, and operating companies that need disciplined debt covenant monitoring across loans, credit facilities, note structures, and lender reporting packages. The service is designed to reduce breach risk, improve reporting quality, and keep management ahead of covenant pressure before it turns into waiver discussions.
What This Service Covers
Debt documents often look manageable at signing and turn messy in live operation. Ratios are calculated differently across facilities, baskets get misread, reporting deadlines slip, and management only focuses on the covenants once there is a risk of breach. That is too late. By then, lender trust is already under pressure and the company is reacting instead of controlling the process.
Our debt covenant monitoring service is built for companies with active financing obligations that need a structured way to track tests, deadlines, thresholds, exceptions, and lender-facing reporting. We help management stay on top of what matters, flag stress points early, and support a cleaner relationship with lenders and credit counterparties.
Covenant Calendar
We map financial covenants, information covenants, notice triggers, cure periods, testing dates, and reporting deadlines into a single monitoring framework.
Ratio Tracking
We monitor the ratios and tests that drive lender compliance, including leverage, DSCR, fixed charge coverage, liquidity thresholds, and other deal-specific metrics.
Early Warning Review
We flag pressure points before they become formal defaults, including weak forecast coverage, seasonal compression, one-off events, and reporting inconsistencies.
Lender Reporting Support
We help structure compliance certificates, covenant summaries, and supporting schedules so the lender-facing package is cleaner and more defensible.
What Gets Monitored
| Monitoring Area | Focus |
|---|---|
| Financial Covenants | Leverage ratios, debt service cover, fixed charge cover, minimum EBITDA, minimum liquidity, net worth tests, and any bespoke calculations in the finance documents. |
| Information Covenants | Monthly, quarterly, and annual reporting deadlines, compliance certificates, budgets, forecasts, notices, and required supporting materials. |
| Negative Covenants | Restricted payments, additional indebtedness, liens, acquisitions, disposals, affiliate transactions, and other action-based restrictions. |
| Forecast Pressure | Forward-looking review of projected covenant headroom, expected stress points, and areas where lender conversations may need to start early. |
Pricing
Debt Covenant Monitoring Retainer
USD 10,000 / month
Ongoing monitoring, covenant tracking, reporting support, and early warning review for active financing arrangements.
To start, remit the monthly retainer using our published bank instructions. Payment details are available here:
View Bank DetailsHow The Process Works
We begin by reviewing the finance documents, covenant definitions, reporting obligations, existing models, and internal reporting cadence. From there, we build the monitoring framework, define the data inputs needed from management, and start tracking compliance against the live facilities. Where a stress point is developing, we identify it early and help frame the issue before it hardens into a default scenario.
This service is built around discipline and timing. The point is not to produce more admin. The point is to reduce surprises, improve internal visibility, and keep lender communications controlled.
Who This Fits
This service fits private companies, sponsor-backed businesses, real asset operators, project-backed entities, and borrowers with active loan or note obligations that need professional covenant surveillance outside a stretched internal finance team.
Need Ongoing Covenant Monitoring?
Send us the debt structure, facility size, reporting cadence, and current compliance position. We will review fit and define the onboarding scope.
Frequently Asked Questions
Is this only for companies already in breach?
No. The service is better used before a breach develops, when management still has room to manage the process and preserve lender confidence.
Do you prepare compliance certificates?
We can support the structure and presentation of covenant reporting packages and compliance materials based on the agreed scope and the underlying debt documents.
Can you monitor more than one facility?
Yes. This is common where a company has layered debt, sponsor facilities, local lines, project debt, or multiple lender relationships.
Do you provide legal advice on defaults or waivers?
No. This service covers monitoring, reporting support, and commercial issue-spotting. Legal interpretation and formal default advice should come from qualified counsel.
Financely provides debt covenant monitoring on a best-efforts basis. Scope depends on the quality of finance documents, internal reporting availability, management responsiveness, and the structure of the debt package. This service supports compliance discipline and lender communication. It is not a guarantee against default, waiver requests, or enforcement action.