A free on-demand webinar from Financial Poise.
Webinar Overview
Some borrowers default. One type of default is a payment default, when the loan is not paid when it becomes due, or a particular payment is missed. The other type of default is a covenant default. This webinar explains both, and discusses what happens when one happens.
Among other subjects, this webinar will help attendees:
- Understand the types of defaults
- Differentiate between payment defaults and covenant defaults, including their legal and financial implications
- Identify common terms and provisions in loan agreements that could lead to covenant defaults (e.g., financial ratios, reporting obligations)
- Analyze the consequences of default
- Explore the potential legal, financial, and reputational consequences of both payment and covenant defaults
- Learn proactive steps borrowers can take to avoid defaults, including timely communication with lenders and adherence to loan covenants
- Gain insight into typical lender responses to defaults, such as acceleration clauses or loan restructuring, and how borrowers can negotiate favorable outcomes
Learning Objectives:
- Understand the Types of Loan Defaults: Define and differentiate between payment defaults and covenant defaults, including their key characteristics and triggers
- Identify Common Covenant Default Triggers: Recognize loan agreement terms, such as financial ratios and reporting obligations, that could lead to covenant defaults
- Analyze the Consequences of Loan Defaults: Evaluate the legal, financial, and reputational impacts of both payment and covenant defaults on borrowers
- Learn Strategies to Avoid Loan Defaults: Explore proactive steps, such as effective communication with lenders and adherence to loan covenants, to reduce the risk of default
- Understand Lender Responses to Defaults: Gain insight into lender remedies, such as acceleration clauses, penalties, or restructuring, and how they affect borrowers
- Navigate Default Situations and Negotiate Outcomes: Develop strategies for managing default scenarios, including negotiating loan modifications, waivers, or restructuring to achieve favorable resolutions
Download the PowerPoint Slides (PDF)
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