- Interest cover – to ensure that interest and operating leases can be covered by operating profits before amortisation.
- Minimum EBITDA (Earnings before interest tax depreciation and amortisation) – the ongoing ability to generate a minimum level of EBITDA
- Occupancy levels – to ensure that occupancy levels do not fall to an unacceptable level Impacting on earnings, debt serviceability etc.
- Debt servicing – testing the ability to generate adequate EBITDA or operational cashflow to cover debt obligations, both principal and interest
- Members Capital – normally for LLPs to ensure a minimum level of permanent capital is maintained in the business
- Maximum Gearing Covenant – to ensure an acceptable balance between interest bearing debt and capital/shareholders’ funds within the business
- Dividends – restrict the borrower’s ability to make certain payments that may adversely affect the ability to repay borrowings.
New Squat’s – from planning to build Extension’s Conversion to private/capitation scheme Expansion