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The kinds of covenant
Financial covenants set limits — a minimum coverage ratio, say. Information covenants require you to supply figures. Negative covenants stop you doing things, like granting security. All are binding.
Living with them
Monitor your position against each covenant, because a breach is an event of default even when repayments are on time. If one is at risk, tell the lender early — see what to do on a breach. Simpler facilities carry lighter covenants.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Can I default without missing a payment?
Yes. Breaching a covenant — a financial limit, an information requirement or a restriction — can trigger default even if every payment is up to date.
How do I stay on top of covenants?
Know exactly what each requires, monitor your position, and warn the lender early if a breach looms. Lighter facilities have fewer covenants.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.