Restrictions that are put on a borrower by the bank or other entity that granted the loan. The restrictions might specify that a certain level of sales or profits be generated or might limit the company’s ability to take on other debt. If debt covenants are broken, often the loan becomes due immediately.
debt covenants - Investment & Finance Definition
Webster's New World Finance and Investment Dictionary Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
Used by arrangement with John Wiley & Sons, Inc.
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"debt covenants." YourDictionary, n.d. Web. 06 December 2018. <https://www.yourdictionary.com/debt-covenants>.
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debt covenants. (n.d.). Retrieved December 06th, 2018, from https://www.yourdictionary.com/debt-covenants
