While Treasury is not responsible for poor operating results, Treasury is responsible for managing lenders and senior management about these high probability covenant issues to maintain the company’s access to funding at the lowest possible cost. Treasury can only do this if it has a strong debt compliance process that comprehensively manages the current quarter, gathering information about existing and potential covenant issues so that they can be monitored, managed and mitigated in future quarters.
There can be only one debt compliance objective: no surprises to your CFO, CEO and lenders!
We’ve done the work and developed a 12-Step Checklist Treasury can take to mitigate its risk of causing default.
Download 12 Steps for Treasury to Take to Avoid a Debt Compliance Default and sleep better at night.