answersLogoWhite

0

A financial covenant is a clause in a loan agreement or bond indenture that requires the borrower to maintain certain financial metrics or ratios, such as debt-to-equity or interest coverage ratios. These covenants are designed to protect lenders by ensuring that the borrower remains financially stable and capable of repaying the loan. If the borrower fails to meet these requirements, it may trigger penalties, including higher interest rates or loan default. Financial covenants help maintain transparency and accountability between borrowers and lenders.

User Avatar

AnswerBot

1w ago

What else can I help you with?

Continue Learning about Finance

How do you make a sentence for financial?

we are not rich. We are facing financial problems.


Who is better a financial planner or a financial advisor?

Almost all financial planners are financial advisers, but not all financial advisers are financial planners. Both of them must be a Certified Financial Planner (CFP). Financial planners are the ones who deal with financial tools to evaluate all areas of financial life including your savings, investments, retirements, taxes and estate planning, and help you to make a plan.. While for financial advisers, they are the ones who recommend things about your financial stature and help you to reach your financial goals.


What is the financial position of Wells Fargo financial institution?

Financial Adviser or the 'financial position' is just one of many employment opportunities at Wells Fargo financial institution. A Financial adviser helps you reach your financial goals within the banks branch.


What is the pure point financial rating for this particular financial institution?

The pure point financial rating for this financial institution is AAA.


What are financial forecasts and financial projections?

Financial forecasts and financial projections are estimated future financial statements of the company that presents its expected financial position. Financial forecasts assume that the company will continue to function in the same manner as it is currently functioning and in financial projections there are few hypothetical assumptions about a company's future course of action.

Related Questions

What does covernant mean?

A promise to god


What was a lesson that could be learned in Halo The Fall of Reach?

That halo reach is a good games and it teaches you how to kill covernant and floods


How do you make a sentence for financial?

we are not rich. We are facing financial problems.


Who is better a financial planner or a financial advisor?

Almost all financial planners are financial advisers, but not all financial advisers are financial planners. Both of them must be a Certified Financial Planner (CFP). Financial planners are the ones who deal with financial tools to evaluate all areas of financial life including your savings, investments, retirements, taxes and estate planning, and help you to make a plan.. While for financial advisers, they are the ones who recommend things about your financial stature and help you to reach your financial goals.


In financial analysis why does the analyst compute financial ratios rather than simply studying raw financial data?

In financial analysis the analyst compute financial ratios to determine the financial health of an financial institutoin rather than simply studying raw financial data.


Financial?

Financial Services


What are the elements of financial system?

The main elements of Financial System are as follows:MoneyFinancial MarketsFinancial InstitutionsFinancial InstrumentsCentral Banks


What is the financial position of Wells Fargo financial institution?

Financial Adviser or the 'financial position' is just one of many employment opportunities at Wells Fargo financial institution. A Financial adviser helps you reach your financial goals within the banks branch.


What are financial feeders?

Financial feeders are accounts, both financial and non-financial, that provide key information required for financial processes. These aspects can be logistics, personnel and acquisitions.


What is the pure point financial rating for this particular financial institution?

The pure point financial rating for this financial institution is AAA.


What is the abbreviation for 'financial'?

The abbreviation of the word financial is fin or fy. Financial means anything pertaining to the study of finance.


Nature and role of financial institution and financial market?

nature of financial institution