Financial Covenants

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Definition: Financial Covenants

Financial Covenants
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Full Definition of Financial Covenants

Provisions included in a loan agreement that establish the financial management standards by which a lender will agree to extend financing to a business. For example, a bank may require that a company maintain specific debt to asset ratios on its balance sheet.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/financial-covenants/
Modern Language Association (MLA):
Financial Covenants. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
December 19, 2024 https://payrollheaven.com/define/financial-covenants/.
Chicago Manual of Style (CMS):
Financial Covenants. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/financial-covenants/ (accessed: December 19, 2024).
American Psychological Association (APA):
Financial Covenants. PayrollHeaven.com. Retrieved December 19, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/financial-covenants/

Definition Sources

Definitions for Financial Covenants are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.