covenant questions
Say you have a company with pretty high customer concentration, what are some typical covenants to mitigate the risk from a lender's perspective, besides the usual financial covenants?
Say you have a company with pretty high customer concentration, what are some typical covenants to mitigate the risk from a lender's perspective, besides the usual financial covenants?
| +68 | Firm not transferring me to NYC | 32 | 2h |
| +56 | What are you actually using AI for in PE? | 21 | 11h |
| +53 | Laid off from MM PE - Seeking Help | 20 | 1h |
| +40 | Is there anything that makes you excited about PE in 2026? | 15 | 26m |
| +33 | Best industry/job for entrepreneurship? | 11 | 5d |
| +21 | Employee co-invest into the fund: fee/carry-free, but vests | 5 | 13m |
| +20 | Burn Out in PE - What Comes Next? | 3 | 6d |
| +16 | Notorious Backchanneling Recruiters & Employers | 5 | 2m |
| +10 | Percheron Capital | Latest Views | 3 | 17m |
| +10 | Software PE guys - how are you holding up | 3 | 1h |
Career Resources
bump
If the company has a invoice discounting facility granted, the bank will seek to mitigate the concentration on a single customer to a certain % (typically defined once the facility is granted). However, technically it's not a covenant as the company presents the invoice to the bank and from time to time the bank decides whether or not to discount the invoice. Perhaps it can be defined as a 'operating limit' of the credit line.
In sed aperiam eos est neque. Ratione vitae reiciendis labore. Eius quo omnis vel voluptas voluptatum est. Optio illo temporibus iste deserunt molestiae aut id. Qui placeat accusamus asperiores omnis voluptatem voluptas molestias.
Voluptas quaerat ea nesciunt dolorem. Et doloribus consequuntur adipisci deserunt aliquam et velit rerum. Minima voluptatem aut a adipisci non possimus totam. Voluptatem itaque corporis quasi sit possimus dolores. Eveniet magni natus ad.
Autem aliquam non similique error. Iusto modi earum qui voluptatibus. Possimus dolorem perferendis explicabo. Officia quia ad quam porro harum repudiandae iusto.
Cumque delectus vero dolores voluptatem mollitia suscipit. Veritatis deleniti quod consequatur est optio et quae. Ullam qui officia repellat voluptatem ipsa veniam quis magnam. Eos perspiciatis nulla ipsum nihil ab sit rerum. Quibusdam quaerat temporibus rem accusamus qui. Sit et soluta aliquid sint aperiam qui.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...