Does it work with QuickBooks Online?

Yes. CovenantGuard connects to QuickBooks Online with a read-only connection and builds its analysis from your live ledger.

Is there a free way to start?

Yes, try the free Loan Covenant Health Check first, then connect QuickBooks when you are ready.

Our lender uses a specific definition of DSCR — can that be matched?

Yes. The ratio definitions are set to mirror your specific credit agreement, so the numbers you monitor match how your lender actually measures compliance.

Compliance for businesses with bank debt

Loan covenant compliance for businesses with bank debt

If your loan has covenants, a quarter-end surprise is the worst kind. Continuous monitoring of DSCR, leverage, and coverage from your ledger gives you time to act before a breach.

See it in the suite How CovenantGuard works

The situation

If your loan carries covenants, the riskiest moment is the gap between reporting dates. Ratios are usually rebuilt in a spreadsheet the week the compliance certificate is due — precisely when a looming breach is most expensive to discover, because there is no runway left to fix it.

How CovenantGuard works for businesses with bank debt

1Encode your covenant definitions once to match the credit agreement (DSCR, leverage, fixed-charge coverage, liquidity, capex).
2Let CovenantGuard compute each ratio continuously from QuickBooks, not just at quarter-end.
3Watch headroom in dollars of EBITDA or cash, not just the ratio, so you know how much room a capex purchase or a revolver draw will use up.
4Pull the covenant calculations and their ledger support together at test date, so the compliance certificate is assembled from numbers you have already been watching.

Illustrative example

A distributor with $4.2M of term debt has a 3.00x maximum total-leverage covenant (debt ÷ trailing-twelve-month EBITDA). At $1.6M of EBITDA, leverage is 2.63x — comfortable. After a slow quarter, TTM EBITDA is $1.45M and leverage is 2.90x: still passing, but EBITDA only has to fall another $50k, to $1.4M, to hit 3.00x — and drawing $150k on the revolver to cover a seasonal build would get there with no fall in EBITDA at all. Seen at quarter-end, that is a breach; seen as it develops, it is a decision about timing the draw or talking to the lender first.

Hypothetical figures to show the arithmetic, not customer results.

Questions

How does CovenantGuard help businesses with bank debt?: If your loan has covenants, a quarter-end surprise is the worst kind. Continuous monitoring of DSCR, leverage, and coverage from your ledger gives you time to act before a breach.
Does it work with QuickBooks Online?: Yes. CovenantGuard connects to QuickBooks Online with a read-only connection and builds its analysis from your live ledger.
Is there a free way to start?: Yes, try the free Loan Covenant Health Check first, then connect QuickBooks when you are ready.
Our lender uses a specific definition of DSCR — can that be matched?: Yes. The ratio definitions are set to mirror your specific credit agreement, so the numbers you monitor match how your lender actually measures compliance.

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