ClearCFO learning guide · Updated 27 September 2026 · Educational information
Read the agreement first
Terms such as EBITDA, net debt and debt-service coverage can have detailed contractual definitions. Do not substitute a website calculator or accounting shorthand for those definitions. Record permitted adjustments, exclusions, test dates and reporting requirements.
Build a facility schedule
List drawn debt, undrawn amounts, maturities, repayment dates, interest terms and security. Undrawn availability may depend on conditions and cannot always be treated as cash.
Forecast pressure before it arrives
Recalculate tests under lower earnings, slower collections and rate changes where relevant. Keep covenant headroom separate from available bank cash and from a debt-service forecast.
Escalate with evidence
Identify the next test or payment at risk, the assumptions causing pressure and the date a decision is needed. Discuss options with the appropriate advisers and lender; this educational guide does not interpret your loan agreement.
Further reading: BDC: preparing finances for an economic slowdown.
Examples are illustrative and simplified. Apply definitions and assumptions appropriate to your business; obtain professional review for material decisions. Read the financial disclaimer.