Debt Management Checklist

Tie the debt schedule (term loans, revolver draw, equipment notes, SBA loans, leases capitalized under ASC 842) to the GL loan balances and the most recent lender statements. Roll forward principal, interest accrued, and any PIK from the prior quarter.

Bucket principal due by quarter for the next 24 months. Flag any balloon, bullet, or revolver expiry inside 12 months — those need to drive refinance planning now, not at maturity.

Calculate Debt/EBITDA, Fixed Charge Coverage (FCCR), Interest Coverage, and Debt Service Coverage (DSCR) using the same definitions the credit agreement uses — EBITDA add-backs almost always differ from your management EBITDA. Tie the inputs back to the trial balance.

Pull the credit agreement and any amendments. Confirm the financial covenants in force this quarter (FCCR threshold, max leverage, min liquidity), reporting deadlines, and any springing covenants tied to revolver utilization.

Use the lender's prescribed certificate format. Each computed ratio must reference the exact section of the credit agreement and tie to the workpaper from the assessment phase. The CFO signs; do not send unsigned.

Loop in outside counsel before contacting the agent. Draft a waiver request that names the covenant, the period, the cause, and the remediation plan. Most lenders prefer to negotiate a waiver fee or reset rather than declare default — but only if you bring it to them first.

Trigger refinance work if any of these are true: a tranche matures within 12 months, weighted-average cost of debt is 200+ bps above current market, a covenant is at risk, or the revolver is consistently above 70% utilized. Document the decision either way.

Approach the incumbent plus two competing banks or non-bank lenders. Provide the same CIM-style package to each: trailing financials, projections, debt schedule, and the ask. Comparing on stated rate alone is the common mistake — model total cost including origination, prepayment penalties, and unused-line fees.

Build a side-by-side: rate (SOFR + spread), origination, unused-line fee, prepayment, covenant package, advance rates on borrowing-base assets, and personal-guaranty requirements. The cheapest stated rate often loses on covenants.

Update the 13-week direct-method cash forecast using the latest A/R aging, A/P aging, and contracted revenue. Layer in scheduled debt service (P&I) and any required principal sweeps. Compare actual vs. forecast for the prior 4 weeks and document variance drivers.

Pull the A/R aging from QuickBooks or NetSuite and assign every 60+ bucket to a named owner with a call-by date. Customers >90 days excluded from the borrowing base — uncollected A/R directly reduces revolver availability.

Compare DSO, DIO, and DPO against the prior quarter and the budget. Cash conversion cycle creep is the silent killer of liquidity; if DPO has stretched past terms, expect vendors to push back at year-end with COD demands.

Two-page format: covenant compliance summary, leverage and coverage ratio trend, material variances vs. budget, and forward outlook. Send before the lender asks — proactive communication is what gets you waivers when you need them.

Include weighted-average cost of capital, maturity wall chart, covenant headroom, and any restructuring decisions made this quarter. Flag any item that requires board approval (new facility, amendment, guaranty, lien).