We believe that business owners should manage their businesses to suit their needs and wants instead of to financial covenants. This can be especially significant if a business is struggling, is seasonal, or if the owner wants more flexibility in how the business is managed. Covenants can be difficult for a borrower – the borrower must be in compliance and report to the lender that they are in compliance otherwise the lender can impose remedies (i.e., tighter borrowing limits, a freeze on borrowing, default interest rate increases or even asking the client to the exit the relationship). Our focus is on collateral performance, not financial covenants.
