Covenants are a standard part of any loan agreement. A bank will require that the company’s auditor verify these covenant compliance calculations. This covenant review may be an annual or sometimes quarterly requirement.
How BDO can assist you with covenant reviews
We will review the covenant compliance certificate and the supporting documentation. We will agree that the 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 review 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
Please contact us to discuss your covenant review requirements.