As part of a loan agreement, it is normal for a company to be required to meet certain covenants on a regular basis. Often a bank will require a company's auditors to verify these covenant compliance calculations on an annual or even a quarterly basis.
How BDO can assist you
We can review the covenant compliance certificate prepared by the company for the bank together with the supporting documentation. We will agree that this covenant certificate has been prepared in accordance with the loan agreement and then provide the company with a report confirming this that can be submitted to the bank.
We can also assist in reviewing projections for future covenant compliance and advise on the suitability of accounting policies.
We can support you on;
- Assurance on reported numbers
- Clarification on future covenant compliance
- Assistance in bank negotiations