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

Valuation

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.