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Liquidity Management

For business owners and CEOs with debt

Take control of liquidity, loan covenants, and your next move

Forecast liquidity, see when pressure hits, test scenarios, and get an action plan, negotiation playbook, and lender communication for banks and investors.

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Breach date projection Breach vs. funding timing Risk score Action playbook

How it works

Your lender set rules when you borrowed

Most business loans include a limit on how much debt you can carry relative to your earnings. Go above it, and you're in breach.

A breach shifts power to your lender

They can charge penalties, block distributions, tighten your credit line, or call in the loan — even if you're still operating profitably.

This tool calculates when that happens

And shows you whether it hits before or after your next funding, refinancing, or cash milestone. That timing changes everything.

Does this apply to you?

A quick check to see if this tool is relevant for you.

1. What type of debt does your business have?

Select all that apply

Bank debt (term loan, mortgage, bank loan) Credit facilities or venture debt (revolving credit, overdraft, venture debt, factoring) Not sure what type of debt I have

Upload your P&L and/or Balance Sheet from your accounting software. Supports CSV and Excel (.xlsx).

📁

Drop file here or click to browse

.csv, .xlsx, .xls

Upload your loan agreement PDF and let AI extract the covenant threshold, debt amount, test frequency, and more. You review and edit everything before applying.

📄

Drop PDF here or click to browse

.pdf only

Your loan numbers

?Not sure which to pick? Monthly EBITDA is what your business earned in the most recent month. LTM EBITDA is the total for the last 12 months. If you have your annual P&L, choose LTM. If you only have recent monthly reports, choose Monthly. 📋 Where to find it: Your P&L statement from your accountant. Look for "EBITDA" or "operating profit."

Currency:

Number format: 1,000,000.00

Current Leverage Ratio?How many years of profit it would take to pay off all your debt. A ratio of 2.8 means you owe 2.8 times your annual earnings. We calculate this from your other inputs — enter it here so we can check they match. 📋 Where to find it: Your lender may quote this in review meetings or quarterly reports.

Debt / EBITDA (e.g. 2.8)

Covenant Threshold?The limit your bank sets on how much debt you can have compared to your earnings, typically called a ratio in contracts. If you go over this number, you've broken a rule in your loan — and the lender gets extra power. 📋 Where to find it: Your loan agreement, in a section usually called "Financial Covenants."

Max ratio before breach (e.g. 3.0)

Monthly EBITDA?Your company's monthly operating profit before accounting adjustments. Think of it as: revenue minus the costs of running the business, but before interest, tax, and depreciation are subtracted. 📋 Where to find it: Your P&L statement from your accountant. Look for "EBITDA" or "operating profit."

Current monthly figure

LTM EBITDA (Annual)?Your total operating profit for the last 12 months. The historical actual numbers are more accurate than taking one month and multiplying by 12. 📋 Where to find it: Ask your accountant for "trailing twelve months EBITDA" or if that is not available, add up the last 12 monthly figures from your P&L statement.

Trailing 12-month EBITDA

Monthly EBITDA Trend?Is your monthly profit going up, down, or staying flat? Enter the amount that changes each month. A negative value means it's shrinking (e.g., -25,000). Positive means growing. Enter 0 if it's roughly stable. 📋 Where to find it: Compare your last 3–6 months of EBITDA and estimate the monthly pattern. You find the EBITDA in your P&L statement from your accountant or bookkeeper. Look for "EBITDA" or "operating profit."

Change per month (negative = decline)

Total Debt?The total amount you owe to your lender — loans, credit lines, and any borrowed capital. Do not include what you owe suppliers (trade payables) or money from investors (equity). 📋 Where to find it: Your balance sheet under "Interest-bearing debt" or "Long-term liabilities." Your lender can confirm.

Outstanding debt balance

Cash Zero Date?The date when your cash runs out if nothing changes. If this comes before a loan breach, running out of cash is your more urgent problem. 📋 Where to find it: Your accountant or CFO can estimate this from your current cash balance and monthly burn rate.

When cash runs out

Expected Funding Close?When you expect new money to arrive — from investors, a new loan, or refinancing. If you break your loan terms before this date, the lender has leverage over you before your lifeline lands. 📋 Where to find it: Your own funding timeline. When is the next capital expected to close?

When new funding lands

Fine-tune the model to match your actual covenant agreement: testing frequency, net debt definitions, and EBITDA adjustments.

Test Frequency?How often your lender checks whether you're within your loan limits. Most lenders check quarterly (every 3 months). You can only break the rules on a test date — not between them. 📋 Where to find it: Your loan agreement, in the covenant testing section. Or ask your lender contact.

Monthly or Quarterly

Next Test Date?The date of your next scheduled covenant test. Future test dates are calculated forward from this date. If left empty, the model tests every month from today. 📋 Where to find it: Your lender's reporting schedule or your last compliance report.

Anchor for test schedule

Use Net Debt (Debt minus Cash)

Many covenants use net debt instead of gross debt

?Some loans measure debt after subtracting your cash in the bank. If your loan uses "net debt," enable this and enter your cash balance — it makes your ratio look better. 📋 Where to find it: Check if your loan agreement says "net debt" or "gross debt" in the covenant definition.

Cash on Hand?Your current unrestricted cash balance. This is subtracted from your total debt to calculate net debt. 📋 Where to find it: Your latest bank statement or accounting system.

Current cash balance

EBITDA Add-backs %?Some loan agreements let you adjust your profit number upwards for unusual costs (like a one-time restructuring). This makes your financial position look better for the covenant test. 📋 Where to find it: Your loan agreement may list "Permitted Adjustments" or "EBITDA Add-backs." Ask your lawyer or lender.

e.g. 10 for 10% add-back

The Cash Conversion Cycle measures how long cash is tied up in operations. Adding these figures shows the hidden drag on your effective headroom.

Days Inventory Outstanding?Average days to sell inventory. Calculated as (Avg Inventory / COGS) x 365. Uses COGS, not revenue.

Days to sell inventory (e.g. 45)

Days Sales Outstanding?Average days for customers to pay you. Calculated as (Avg AR / Revenue) x 365. Based on revenue.

Days to collect payment (e.g. 38)

Days Payable Outstanding?Average days you take to pay suppliers. Calculated as (Avg AP / COGS) x 365. Uses COGS. Higher works in your favor.

Days to pay suppliers (e.g. 30)

Annual Revenue?Annual revenue or run-rate. Used with gross margin to calculate the cash trapped in your operating cycle.

For working capital estimation

Gross Margin %?Your gross margin as a percentage. Used to derive COGS from revenue for accurate DIO and DPO calculations. COGS = Revenue x (1 - Gross Margin). E.g. 65% margin means 35% of revenue is COGS.

e.g. 65 for 65% margin

Revenue Concentration?Percentage of total revenue from your single largest client. If above 20%, losing that client could dramatically accelerate a covenant breach.

% from largest client (e.g. 35)

Monthly Revenue Growth Rate %?Your expected monthly revenue growth rate as a percentage. Used to project how working capital demand scales with growth. Even modest growth rates can create significant cash demand if your cash conversion cycle is long.

Expected monthly revenue growth (e.g. 10)

Fixed Monthly Costs?Total fixed monthly operating costs including payroll, rent, insurance, and other overhead that does not vary with revenue. Used to calculate operating cash flow after working capital absorption.

Payroll + rent + other fixed opex

Current Cash Buffer?Your current available cash balance for operations. This is the starting point for the stress test projection. May differ from Cash on Hand used in the net debt calculation if some cash is restricted.

Available cash for operations

Covenant Breach Analysis

PRO

💡 To compare scenarios: save this result, change your inputs above, calculate again, and save the new result. Up to 3 scenarios are shown side by side.

Projected Breach Date?This is the date when your debt-to-earnings ratio is projected to cross the limit in your loan agreement. After this date, your lender can take action — penalties, tighter terms, or calling in the loan.—

Next Test Date at Breach—

Headroom Remaining?How many weeks you have before you hit the limit. Think of it as your safety margin — the more weeks, the more time you have to act.—

Current Leverage (Implied)—

Funding Close Date—

Cash Zero Date—

Burn Multiple—

What-If Simulator PRO

Drag the sliders to see how changes affect your covenant position in real time.

EBITDA Trend

Total Debt

Covenant Threshold

EBITDA Add-backs %

0%25%

Revenue Growth Rate ?Drag to see how different growth rates affect your cash crisis timing. The Cash Crisis row below updates in real time. Lower growth reduces cash demand; higher growth accelerates it. The full stress test card below shows your baseline analysis — to update it with new numbers, change the inputs above and click Calculate again.

0%50%

Breach Date —

Headroom —

Current Leverage —

EWI Score —

Cash Crisis —

Cash Conversion Stress Test PRO ?This test answers one question: how much growth can this business sustain before cash becomes the constraint? The breakpoint growth rate is the maximum monthly revenue growth rate your business can sustain without running out of cash — given your current margins, payment terms, cost base, and cash reserves. Above this rate, growth consumes cash faster than operations generate it. The business will need external capital (credit line, equity, or invoice financing) even if it is profitable. Color coding: Green (above 30%) = comfortable room to grow. Amber (15–30%) = growth is nearing your cash capacity. Red (below 15%) = very little room — small changes could trigger a crisis.

—

Time to Structural Cash Crisis ?This is not runway. Runway measures when cash runs out from losses. Structural cash crisis measures when cash runs out from growth. When revenue grows, your business needs more working capital — more cash tied up in receivables, inventory, and operations. If that demand exceeds the cash your margins generate, you run out of cash while still being profitable. This metric shows when that happens at your current growth rate.—

Growth-Induced Cash Demand

This table projects your monthly revenue, the additional working capital each month demands, and your resulting cash position — assuming your current growth rate, margins, and payment terms continue. Red values indicate months where cash is negative.

Month	Revenue	WC Demand	Cash Position

Cash Fragility Analysis ?These three scenarios show how sensitive your breakpoint is to small changes in your operating terms. Each line answers: if one thing gets slightly worse, how much does your sustainable growth rate drop? A small change that dramatically lowers the breakpoint signals structural fragility — your growth model depends on terms staying exactly as they are. Red text means that scenario pushes the breakpoint below your current growth rate.

Board Summary

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Method & Real Example

This calculator estimates covenant headroom as time-to-breach on the next covenant test dates, using net debt to EBITDA and an explicit EBITDA trend assumption. Results are directional. Your loan agreement definitions always govern.

Example Inputs

Net debt	4.35m
LTM EBITDA	1.80m
Current net leverage	2.4×
Covenant threshold	3.0×
EBITDA trend	−10k / month
Test frequency	Quarterly
Next test date	31 Mar 2026
Cash-zero date	31 Jul 2026
Funding close	30 Sep 2026
Cash conversion cycle	87 days

Example Output

Projected breach test date	30 Jun 2026
Headroom	13 weeks
Negotiation risk	Breach before funding close

That single output drives the board conversation: request a waiver now, accelerate the funding timeline, or renegotiate the covenant — while you still have leverage.

Why This Tool Is Different

Most financial tools focus on cash runway. This one focuses on the moment your lender gains control — a far more consequential date.

Leverage Timing, Not Just Cash

Shows when your debt-to-EBITDA ratio crosses the covenant threshold — the real trigger for lender intervention, separate from when cash runs out.

Cash Conversion Cycle Integration

Reveals how much cash is trapped in your operating cycle. Your income statement may look healthy while your working capital tells a different story.

Breach vs. Funding Comparison

Compares your breach date against your funding close date. If the breach comes first, your lender holds the cards before your capital arrives.

Contextual Negotiation Playbook

Generates specific action recommendations based on your results — from waiver requests to covenant renegotiation, with links to deeper EWI resources.

Board-Ready Output

Monthly projection table, scenario comparison, sensitivity analysis, and PDF export — everything you need for your next board meeting or lender conversation.

Financial Report Upload

Upload a P&L or Balance Sheet (CSV/Excel) and the tool auto-detects revenue, EBITDA, debt, cash, receivables, inventory, and payables — pre-filling every field in seconds.

Bridge Round Checklist

When a breach is detected, an interactive checklist scores your bridge readiness across four survival metrics and six warning signals — helping you decide whether to bridge or pivot.

Who It's For

Whether you're managing debt for the first time or preparing for a board review, this tool gives you the numbers that matter.

🎯

Startup Founders

You took on debt to grow. Now you need to know exactly when that debt becomes a constraint — before your lender tells you.

📊

CFOs & Finance Leads

Model covenant scenarios with real-world mechanics: quarterly testing, net debt, EBITDA add-backs. Present to the board with confidence.

📖

First-Time Borrowers

New to covenants? The built-in educational tooltips and intro section explain every concept without assuming prior knowledge.

🤝

Advisors & Board Members

Use the scenario comparison and sensitivity analysis to stress-test assumptions and guide leadership through covenant strategy.

How It Works

Four steps to your covenant breach analysis. Takes less than 2 minutes.

Enter Your Numbers

EBITDA, debt, covenant threshold, key dates. Choose monthly or LTM input mode.

Fine-Tune (Optional)

Add quarterly testing, net debt, EBITDA add-backs, or cash conversion cycle data.

Get Your Analysis

Breach date, headroom, timeline, sensitivity analysis, and month-by-month projections.

Act on It

Follow the contextual playbook. Save scenarios. Export PDF for your board or lender meeting.

The Negotiation Playbook

Based on your results, the tool generates specific recommendations. Here are examples of the advice it provides:

< 8 weeks to breach: Request a waiver letter immediately

Breach before funding: Accelerate your funding timeline

Thin margin: Build a 3-4 week contingency buffer

Cash before breach: Address liquidity first

High CCC: Optimize your cash conversion cycle

Healthy position: Monitor monthly and maintain buffer

Choose Your Plan

Use the tool for free, or upgrade for full access to all features.

Free

€0

No credit card required

Covenant breach calculation
EWI Risk Score
6-month projection
Top 1 sensitivity lever
2 saved scenarios
3 trend snapshots
CSV/Excel import
AI loan agreement parsing (1/day)

Use for free

Pro PRO

€27/mo

Pro — your price is locked for 12 months

Everything in Free, plus:
Full 36-month projection
All 3 sensitivity levers
Full negotiation playbook
What-If Simulator
Board Memo export
Lender communication templates
Interactive Bridge Round Checklist
Cash Conversion Stress Test
Up to 10 entities included
Unlimited scenarios and snapshots

Upgrade to Pro

Pro price — locked for 12 months. No commitment.

Frequently Asked Questions

A covenant breach occurs when your leverage ratio (Total Debt / Annual EBITDA) exceeds the threshold set in your loan agreement. This gives your lender significant control — including the right to charge penalties, accelerate repayment, or call in the loan entirely.

The calculator projects your trailing 12-month EBITDA forward using your monthly trend, then checks each month (or quarter) whether Total Debt / Projected Annual EBITDA exceeds your covenant threshold. The first date it crosses is your projected breach date.

The Cash Conversion Cycle (CCC) measures how many days cash is tied up in operations — in inventory, receivables, and payables. Even if your income statement looks healthy, a long CCC means cash is trapped and unavailable, effectively reducing your headroom before a covenant breach.

All calculations run entirely in your browser. No financial data is sent to any server. The only data transmitted is your email address (if you opt in for a personalised analysis), which is processed by Netlify under GDPR-compliant terms.

Based on your results, the tool generates context-specific recommendations — whether to request a waiver, accelerate funding, renegotiate terms, or address liquidity first. Each recommendation links to relevant Early Warning Index resources.

Yes. The calculator automatically detects both English (1,200,000.50) and Danish (1.200.000,50) number formats. You can also switch the entire interface to Danish using the language toggle.

The What-If Simulator lets you adjust key variables — debt level, EBITDA trend, covenant threshold, and EBITDA add-backs — using live sliders. The breach date, headroom, leverage, and Early Warning Score update instantly so you can model scenarios without changing your original inputs.

When a breach is detected, the Bridge Round Checklist scores your readiness for bridge financing across four survival metrics (cash runway, EBITDA trend, leverage vs. covenant, burn multiple) and six warning signals. It gives a clear proceed, high-risk, or do-not-bridge recommendation.

Yes. Upload a P&L or Balance Sheet in CSV or Excel format and the tool auto-detects revenue, EBITDA, debt, cash, receivables, inventory, and payables — pre-filling the calculator fields in seconds. You can also download a template to format your data correctly.

The tool generates four pre-drafted communication templates personalised with your data: a covenant waiver request, a renegotiation letter, a proactive lender update, and a bridge financing request. Each can be copied or printed and used as a starting point for lender conversations.

The tool automatically calculates what happens if your EBITDA declines by 10% from your projected trend. It shows how many weeks earlier the breach date would move forward, helping you understand your margin of safety and plan for downside scenarios.

The Early Warning Score is a composite metric from 0 to 100 that combines three factors: covenant proximity (how close you are to breach), cash runway (how long your cash lasts), and operational efficiency (cash conversion cycle). A higher score indicates a stronger financial position.

Take control of liquidity, loan covenants, and your next move

Example Inputs

Example Output

Why This Tool Is Different

Leverage Timing, Not Just Cash

Cash Conversion Cycle Integration

Breach vs. Funding Comparison

Contextual Negotiation Playbook

Board-Ready Output

Financial Report Upload

Bridge Round Checklist

Who It's For

Startup Founders

CFOs & Finance Leads

First-Time Borrowers

Advisors & Board Members

How It Works

Enter Your Numbers

Fine-Tune (Optional)

Get Your Analysis

Act on It

The Negotiation Playbook

About Early Warning Index

Choose Your Plan

Frequently Asked Questions

Try Our Free Governance Tools

BoardReady

Covenant Horizon

Decision Latency

Optimism Audit

Pre-Mortem

Early Warning

Ready to calculate your covenant horizon?

Take control of liquidity, loan covenants, and your next move

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Example Inputs

Example Output

Privacy Policy — Covenant Horizon Calculator

What We Collect

Why We Collect It

Who Has Access

How Long We Keep It

Your Rights

Data Controller

How was your experience?

Why This Tool Is Different

Leverage Timing, Not Just Cash

Cash Conversion Cycle Integration

Breach vs. Funding Comparison

Contextual Negotiation Playbook

Board-Ready Output

Financial Report Upload

Bridge Round Checklist

Who It's For

Startup Founders

CFOs & Finance Leads

First-Time Borrowers

Advisors & Board Members

How It Works

Enter Your Numbers

Fine-Tune (Optional)

Get Your Analysis

Act on It

The Negotiation Playbook

About Early Warning Index

Choose Your Plan

Frequently Asked Questions

Try Our Free Governance Tools

BoardReady

Covenant Horizon

Decision Latency

Optimism Audit

Pre-Mortem

Early Warning

Ready to calculate your covenant horizon?