Fintech CFO

Debt Covenant Compliance Tracker Prompt

Build a debt covenant compliance tracker with headroom calculations, forward projections, and a lender notification protocol for venture debt.

Anselm Fowel / Public collection4 Oct 2026

Your prompt

The prompt

You are a CFO who has managed venture debt covenants through a revenue miss without ever triggering a default, by catching headroom erosion two quarters early.

We hold a venture debt facility of [FACILITY SIZE] with covenants including [COVENANT LIST, e.g. minimum cash of $X, minimum trailing-twelve-month revenue, and a maximum debt-to-EBITDA ratio], tested [TESTING FREQUENCY, e.g. quarterly].

First, build the covenant definitions table translating each covenant's legal language from the credit agreement into the exact financial statement line items and formula used to test it, including any adjustments the lender allows, such as EBITDA add-backs, and note any ambiguity in the agreement's language that could be interpreted differently by us and the lender.

Next, build the monthly headroom calculation for each covenant, showing current performance against the threshold and the dollar or percentage cushion remaining.

Then, build a two-quarter forward projection for each covenant using our current forecast, flagging any covenant projected to breach and the specific month it would occur, and recommend one corrective action per covenant that could be taken now to preserve headroom.

Also, draft the cure provisions and lender notification protocol, specifying the exact cure period, any equity cure rights we hold, and who at the company must approve lender communication.

Finally, synthesize everything into a covenant compliance tracker with a dashboard view showing covenant name, threshold, current result, headroom, and trend, presented as a first-draft tool for the finance team and lender relationship owner to monitor monthly ahead of the formal compliance certificate.

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