What is Loan Covenant?

A loan covenant is a set of conditions or restrictions that a borrower must agree to in order to obtain a loan from a lender. These covenants are designed to protect the interests of the lender and ensure that the borrower meets certain financial and operational requirements.

Loan covenants typically include financial covenants, which require the borrower to maintain certain financial ratios, such as debt-to-equity ratio, or to meet specific financial targets, such as revenue or profit margins. Operational covenants may also be included, which require the borrower to maintain certain levels of inventory or limit capital expenditures.

How Financial Bank Covenants Affect Your Trucking Business

How Financial Bank Covenants Affect Your Trucking Business

During this period of national crisis, the extreme peaks in demand for capacity combined with a faltering economy have heightened the difficulty of maintaining positive…
Protect Your Trucking Business from Bank Loan Covenants

Protect Your Trucking Business from Bank Loan Covenants

It’s a good thing that truckers are a tough breed as these are certainly tough times we’re in. During the first half of 2019, approximately…
What To Do If You Break a Bank Loan Covenant

What To Do If You Break a Bank Loan Covenant

So, you’ve just received a call from your bank informing you that you’re close to breaching, or in breach, of a loan covenant, and your…

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