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Monthly Lender Reporting Package Template

A compliance certificate, a lettered covenant calculation and a borrowing base, built from the definitions your credit agreement actually uses.

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Covenant Register

[Borrower], [Credit Agreement dated __ ______ 20__]

One row per test. Filled before any arithmetic happens, because the test set is not the same two periods running.

What a covenant table already has

TestSectionThresholdResult
named in the agreement7.__one numbercomputed

What it does not

Threshold scheduleSelected onSwitch conditionLive this periodNumerator windowDenominator window
every step in the agreementthe period being reportedthe agreement's own wordsyes, or the reason notstated separatelystated separately

Three shapes a fixed table cannot hold

ShapeWhat happensWhat it costs
Stepped thresholdThe limit moves on a date in the agreementThe same balance sheet passes in December and defaults in March
Springing testA condition measured elsewhere switches the test onA covenant nobody computed is suddenly the binding one
Split measurement windowThe two sides of a ratio cover different periodsAn answer four times too high, footing perfectly

A dormant test keeps its row, carrying the condition that would switch it on and how far that condition currently sits from its trigger. Deleting the row is how a springing covenant goes missing for six periods.

Your covenant spreadsheet has a fixed list of rows and one threshold column. The agreement behind it has neither. Thresholds step on a schedule. Tests spring on when something measured somewhere else crosses a line. One amendment on file with the SEC restates a coverage covenant as tested only during a Covenant Testing Trigger Period, against a table of required amounts, month by month. Springing, stepped and monthly, in a single clause. A fixed table is wrong the first time any of that is true, and it is wrong quietly.

Then the definitions. A compliance certificate filed by Luna Innovations carries a liquidity covenant with a footnote saying it is not applicable when the borrower's fixed charge coverage ratio is above 1.25 to 1.00. One test decides whether another exists, and coverage sits three sections below liquidity on the same page. Add a cap expressed as a percentage of the figure it limits, and an amendment that restates a defined term for periods already certified, and the arithmetic stops being arithmetic.

What installs is a covenant register that carries the whole step schedule and picks this period's row. Beside it, a calculation lettered the way the agreement letters it, a borrowing base whose every exclusion resolves to named invoices, and a reporting calendar that separates dated obligations from the ones whose clock starts at an event. The examiners' own interagency guidance lists reporting requirements beside financial performance. Seed it from a normalized trial balance, or take the Word and CSV files. A facility whose whole relationship is the collateral wants the borrowing base certificate pack instead.

One period, certified all the way down

The register that decides what gets tested, the calculation in the agreement's own lines, the collateral behind it, and a real filed certificate.

Covenant Register

Redhall Coatings, Inc., an illustrative industrial coatings maker. Period ended 31 December 2025.

TestSec.ScheduleIn forceSwitch conditionLiveResult
Total Leverage Ratio7.11(a)3.50x to Q4 25 / 3.25x through Q4 26 / 3.00x after3.50xAlways tested at quarter endYes2.32x
Fixed Charge Coverage7.11(b)1.15x flat1.15xOnly during a Covenant Testing Trigger Period. Availability 710,069 against a 2,250,000 thresholdYes, since 14 Nov1.19x
Capital Expenditures7.122,400,000 a year plus half the prior year unused2,660,000Always tested at year endYes2,315,000
Restricted Payments7.062.75x pro forma2.75xTested on each payment date, not at period endYesPermitted
Minimum Availabilitynonen/an/aThere is no availability covenant in this agreementNo710,069

Leverage has 1.18 turns of room and everybody watches it. Coverage has 122,753 of numerator, was dormant for six periods, and was not on the old spreadsheet at all. It switched on mid-November on a single revolver draw, three weeks before anyone looked at a month end.

Covenant Calculation

Consolidated EBITDA, section 1.01 as restated by First Amendment section 2(c). Trailing four fiscal quarters.

LineDescriptionClauseAmount
AConsolidated Net Income1.011,635,000
B to EInterest, taxes, depreciation and amortization, non-cash equity compensation(a) to (d)3,858,000
FNon-cash gains, deductedflush(85,000)
GBefore clause (e)A to F5,408,000
JClause (e) claimed: restructuring 620,000 and cost savings 410,000(e)1,030,000
KClause (e) permitted, 15% of Consolidated EBITDA after giving effect(e) proviso954,353
LDisallowed, not deferred(e) proviso75,647
MConsolidated EBITDAG plus K6,362,353

Line K is circular, and the two wrong readings go opposite ways

ReadingPermittedEBITDAEffect
15% of line M, solved as G times 0.15 over 0.85954,3536,362,35315% of the result is 954,353 exactly
15% of line G811,2006,219,200Understates by 143,153
No cap applied1,030,0006,438,000Certifies 75,647 that is not there

Five reads of one balance sheet

Treatment of Consolidated Funded IndebtednessDebtLeverage
As defined: revolver, term loan, capital leases, undrawn letters of credit, seller note14,733,0002.32x
Omitting the 640,000 of undrawn letters of credit14,093,0002.22x
Omitting the 2,500,000 subordinated seller note12,233,0001.92x
Adding the 1,912,000 ASC 842 operating lease liability16,645,0002.62x

A 0.70 turn spread on one balance sheet, and every one of those four numbers foots. The definition is doing all of the work, which is why the extract comes before the spreadsheet.

Borrowing Base

31 December 2025. Every exclusion resolves to named counterparties in the Aging Summary.

LineComponentAmountResolves to
A1Gross accounts receivable8,940,00043 accounts
A2More than 90 days past invoice date(612,000)Stanwick, Hartsel, 11 others
A3Cross-age: all balances of any account over 50% aged(204,000)Stanwick's current 62,000 comes out too
A4Concentration above 20% of Eligible Accounts(338,625)Vantera Industrial, solved not multiplied
A5, A6Foreign without a letter of credit, and contra(250,000)Perrin Marine, Delgrove Coatings
A7Eligible Accounts at 85%6,405,0697,535,375 eligible
B6Eligible Inventory at 60%2,445,0004,075,000 after 2,135,000 of exclusions
C1 to C3Rent, dilution and sales tax reserves(350,000)Trawick, 6.4% dilution, OH and AL
D1Borrowing Base8,500,069Binds against an 18,000,000 commitment
D6Excess Availability710,069Below the 2,250,000 trigger threshold

What is a signature away

ExclusionActionWorth
B5 inventory at Trawick, and the C1 rent reserve on the same siteSign the landlord waiver drafted in August358,800
A5 Perrin Marine, current and never lateObtain an acceptable letter of credit132,600
A2 Hartsel, two disputed July invoicesSettle the dispute181,900

673,300 of availability sits behind three actions, against a 1,539,931 gap to the trigger threshold. That list is the thing the borrower can act on this week, and it does not exist unless every exclusion is resolved to named invoices first.

Where the design comes from

Exhibit E to the Loan and Security Agreement between Luna Innovations Incorporated and Silicon Valley Bank, filed with the SEC on 16 March 2009. Transcribed from the form of Compliance Certificate.

Reporting CovenantRequired
Monthly financial statements with Compliance CertificateMonthly within 30 days
Annual financial statement (CPA Audited) + CCFYE within 90 days
10-Q, 10-K and 8-KWithin 5 days after filing with SEC
Borrowing Base Certificate, A/R & A/P AgingsMonthly within 30 days
Financial CovenantRequired
Minimum Adjusted Quick Ratio (on a monthly basis)1.25:1.0
Minimum Liquidity (at all times)*1.75:1.0**
Minimum EBITDA (on a quarterly basis)see schedule 1
Fixed Charged Coverage Ratio (on a monthly basis)1.25:1.0

* Minimum Liquidity Covenant applies when Borrowers' Fixed Charge Coverage Ratio is less than or equal to 1.25 to 1.00.

And Schedule 1, section III, is the Minimum EBITDA the second table would not print

PeriodMinimum EBITDA
Quarter ending December 31, 2008($1,750,000)
Quarter ending March 31, 2009($2,000,000)
Quarter ending June 30, 2009($1,300,000)
Quarter ending September 30, 2009($250,000)
Quarter ending December 31, 2009($250,000)
Each quarter thereafter$1.00

Four covenants, three different test moments: at all times, monthly, quarterly. One of them switches off on another one's result. One of them has a six row threshold schedule that changes sign. This is one page of one small company's certificate, and it is why the register comes before the arithmetic.

What's in the pack

01

Covenant Register sheet

One row per test carrying the whole threshold schedule, the row selected for this period, the switch condition in the agreement's own words, and a separate measurement window for each side of the ratio. Dormant tests keep their row and the reason.

02

Covenant Definitions Extract

Every defined term followed until it lands on something a trial balance can produce, with its section, the amendment that last restated it, and every cap resolved. Unresolvable readings go in their own list with the turn effect attached.

03

Which Tests Are Live

The judgement guide, with worked pairs. Why a stepped threshold changes nothing about the business, why entering a springing test is one day and leaving it is thirty, and why a split measurement window gives an answer four times too high.

04

Covenant Calculation sheet

The arithmetic in the agreement's own lettered lines, each carrying its clause, its source and its measurement window, so the certificate can be read against it line for line. Deliberate exclusions appear as lines rather than as absences.

05

Compliance Certificate

The instrument, in the agreement's own order: certifications, covenant results against the thresholds in force, reporting covenant delivery status, the lettered annex, and an exceptions section that discloses rather than hides.

06

Borrowing Base sheet

Advance rates, sublimits and every eligibility clause applied as written, including the concentration limit that solves rather than multiplies. Exclusions that are one signature away are separated out and priced at their advance rate.

07

Aging Summary sheet

Receivables and payables by bucket and counterparty, with the ineligibility reason and amount on each row. Every exclusion on the base resolves here, which is the walk a field examiner does first.

08

Reporting Calendar sheet

Every deliverable with its section, its clock and its trigger, split into periodic obligations, obligations whose frequency changes with a condition, and event-driven obligations whose clock starts when something happens and no calendar can hold.

09

Cover Memo and Compliance Narrative

Three paragraphs for the relationship manager who reads three paragraphs, and a longer note for the credit file that gets read at the annual review by somebody who has never spoken to you.

How to use it

  1. 1

    Take it blank, or worked

    Download the empty Word and CSV files with no signup, or open the pack in River and hand it the agreement instead of retyping ten files.

  2. 2

    Send the paper first

    The credit agreement and every amendment, waiver and side letter. That alone builds the definitions extract, the register and the reporting calendar, which is the part no blank template holds.

  3. 3

    Settle the test set

    Measure the switch conditions, select each threshold from its own schedule, and mark every test live or dormant with the reason. Nothing gets calculated until this is done.

  4. 4

    Certify and disclose

    Build the lettered calculation, then the certificate, the cover memo and the narrative. Anything you know and the lender does not goes in the exceptions section.

Frequently asked questions

Is this template free?

Yes. The whole pack comes down as Word documents and CSV sheets, no signup and no card. Edit with AI is the optional route for anyone who would rather hand River the credit agreement than retype ten files. The rest of the library is at free templates.

What makes a covenant springing, and why does it matter?

A springing covenant is not tested unless a condition measured elsewhere is met, usually availability under a revolver. It can switch on mid-month, on a single draw, so period-end figures never show it. Coming out is slower than going in: entry takes one day below the line and exit takes thirty consecutive days above it.

Do I need the credit agreement, or can I start from my covenant list?

The agreement is the input that matters most, and every amendment with it. From the paper alone River builds the definitions extract, the register of live tests and the reporting calendar, which is the part no blank template can give you. Run it through the covenant definition extractor first if the caps are what you are arguing about.

Does it work for an asset-based facility with a borrowing base?

Yes, and that is where most of the exclusions live. The Borrowing Base sheet ships filled: aging measured from invoice date, cross-age, a concentration limit that solves rather than multiplies, and four reserve lines. Each exclusion resolves to named counterparties in the Aging Summary, which is the walk a field examiner does. The annual credit review takes the same walk to availability.

Does it tell me whether I am in compliance?

It produces the calculation and shows where every line came from. Your own Responsible Officer signs the certificate, which is how the agreement is written. Where a clause admits two readings, the pack takes the one the words support and puts the alternative and its dollar effect in the exceptions section.

How does this sit alongside the month-end close?

The close produces the trial balance this reads from, so the two run in sequence. Lock the period with the month end close checklist, then certify off the locked figures. Cash timing between certificate dates belongs to the 13 week cash flow forecast, which is where availability gets watched weekly.

What if I need to track loan and lease terms, not just covenant math?

The debt schedule and maturity pack is built for that. It keeps one register for every loan and lease, with each instrument's interest computed on its own agreement's day-count convention. Every maturity and balloon date stacks onto one ladder, so a combined repayment wall shows up before it is due.

Certify the number the agreement defines

Download the blank pack as Word and CSV files, or open it in River and let the agent build the definitions extract from your own credit agreement.

Edit with AI