Covenants in Fairways Debt are agreements specifying actions and thresholds that the borrower must perform and respect. Covenants protect lenders when borrowers do not meet their requirements.
Metrics define the measurements to meet in a covenant. Scenarios enable you to simulate different cases using different metrics.
The covenant forecast displays the base covenant statuses of all the organization entities. The status is:
- Green: All the covenants are compliant.
- Orange: At least one covenant has a warning.
- Red: At least one covenant is not compliant.