Friday, September 7, 2007

List of Typical Covenants for an Asset Based Loan

List of Typical Covenants for an Asset Based Loan:
  • Accounts Receivable Turnover
  • Average Days Outstanding
  • Current Ratio
  • Delinquency Ratio
  • Fixed Charge Coverage Ratio
  • Loss to Liquidation Ratio
  • Minimum/Maximum Capital Expenditures
  • Minimum Liquidity
  • Monthly Aggregate Amount of Collections
  • Net Worth
  • Quarterly and Annual EBITDA
  • Tangible Net Worth
  • Total Accounts Receivable between 90 and 120 days

The definitions can be found at http://www.investopedia.com/dictionary/default.asp

Healthcare Collateral Consulting, LLC can perform a thorough remote review of the borrower's performance and any changes in its collateral. HCC can provide our clients with quarterly, semi-annual, or annual credit memorandums. This review can also include the spreading and analysis of financial statements, compliance with loan covenants, and trend analysis of key performance metrics.

David J. Lacasse, Managing Director/President
Healthcare Collateral Consulting, LLC
Fairfield County, Connecticut

djlacasse@gmail.com

No comments: