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Covenant Horizon shows when a covenant breach shifts negotiating power from you to your lender — the date your bank has already calculated, and what you can still do about it.
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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.
Covenant Horizon 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. Covenant Horizon 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 all 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.
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