Interest Cover

This is a ratio which is typically EBIT (earnings before interest and tax) or Net Rent for commercial property divided by the forecasted interest expense


For Commercial property owners the lender may impose a revaluation covenant or a loan-to-valuation ratio covenant to monitor the level of gearing (debt vs. security)

Equity & Drawings

A lender may impose restriction on the business owners withdrawing cash from the business. This could be via a Deed of Postponement ensuring shareholders current accounts remain above a certain level.

The Commercial Shop will ensure any covenants requested by the lender are fair and reasonable and will not restrict you achieving your business objectives.