A credit committee is not reading your business the way you read it, because it is working through coverage, headroom and what happens to cash if revenue falls, and it will decide on the file in front of it. The borrower package brings the earnings support, projections and coverage together so the analyst can trace the credit case to its evidence.
Lender and debt financing support is priced by the size of the facility and how much of the work you want carried. The lender package is the credit file and the written memorandum. The full lender package adds the credit model, the stress testing and support through the lender's questions. Ongoing reporting runs monthly once a facility is in place. The fee and scope are agreed before work begins.
A lender has asked for projections, coverage and support for your adjusted earnings, and has given you a date.
You are raising debt to fund an acquisition and the lender wants a memorandum it can take to committee.
You are refinancing or expanding a facility and need the package that supports the request.
A facility is already closed and the reporting in the agreement has to be produced every month.
A lender decision rests on one question, which is whether the business generates enough cash to service the debt through the term and keeps generating it when conditions turn.
Reported earnings rarely answer that on their own, because the figure in the accounts carries owner compensation at whatever the owner chose to take, personal costs that have run through the business for years, rent paid to a related party, and one-time items sitting in the same lines as everything else. Those have to be found, sized and supported before a credit team will accept them, and an add-back a lender declines to accept reduces the facility.
What comes out of the engagement is a package built in the order a credit analyst works through it. Adjusted earnings come first, with the bridge from reported through to adjusted shown on the page and every add-back tied to the document behind it. Cash available for debt service is then built from earnings through working capital, capital expenditure, tax and cash interest, because that figure is what services the debt. Coverage follows, with debt service coverage and fixed charge coverage calculated by period on the definitions the lender actually uses. Where receivables or hard assets are the security, eligibility rules and advance rates are applied so the borrowing base is calculated.
The package is built around the questions credit analysts and credit committees actually ask, which are consistent enough across lenders to prepare for in advance.
Fixed fees depend on facility size and whether you need the lender package, full lender package or ongoing reporting.
| Engagement | Under $5M facility | $5M to $25M facility | $25M and above facility |
|---|---|---|---|
| Lender PackageOne-off | $2,950 | $4,950 | $7,500 |
| Full Lender PackageOne-off | $5,950 | $8,950 | $12,999 |
| Ongoing MonitoringPer month | $1,500 | $2,500 | $3,950 |
Facilities above twenty five million are scoped individually. Ongoing Monitoring is a monthly fee and the other two are one-off engagements.
From $2,950
We build the credit file and write the lender memorandum.
From $5,950
We build the full package, model the covenants, and support you through the lender's questions.
From $1,500 per month
We produce the borrowing base, the covenant certificates and the monthly lender package.
Lender Package is the file a credit team underwrites from. It carries the reported to adjusted earnings bridge with every add-back supported to document level, the historicals recast into the presentation a credit team reads, the projections with the assumptions behind them, the cash available for debt service build, and the coverage schedules calculated on the definitions in the proposed agreement. It ends in the written lender memorandum.
Full Lender Package carries all of that and adds what a committee asks for once the file is in front of it. It builds the monthly credit model with scenario toggles, runs the stress testing to the point a covenant breaks, sets out covenant headroom by period, and analyses asset coverage and maintenance capital expenditure. Through the process it prepares the answers to the lender's questions on the analysis, coordinates the other diligence providers, and compares term sheets line by line on pricing, structure, covenants and flexibility so you can judge the offers in front of you.
Ongoing Monitoring applies once a facility has closed and the agreement requires a borrowing base, covenant certificates and a monthly package, all produced accurately and on time for the life of the loan.
| Deliverable | Component | Detail |
|---|---|---|
| Borrower package in Excel and PDF | Normalization bridge | Reported through to adjusted EBITDA with every add-back supported to document level |
| Borrower package in Excel and PDF | Historicals recast | Three years recast into the presentation a credit team reads, with the mapping shown |
| Borrower package in Excel and PDF | Projections | Projected profit and loss, balance sheet and cash flow over the facility term with the assumptions stated |
| Borrower package in Excel and PDF | Cash available for debt service | Built from EBITDA through working capital, capital expenditure, tax and cash interest |
| Borrower package in Excel and PDF | Coverage schedule | Debt service coverage and fixed charge coverage by period on the definitions the lender uses |
| Borrower package in Excel and PDF | Add-back substantiation | Support index tying each add-back to its evidence |
| Borrower package in Excel and PDF | Information inventory | What was provided, by whom, and as at what date |
| Memorandum section 1 | Executive summary and credit highlights | The ask, facility structure, use of proceeds, entry metrics and the case for the credit in three points |
| Memorandum section 2 | Borrower and sponsor overview | Ownership, history, structure and the leadership profiles with track record |
| Memorandum section 3 | Industry overview | Market size, growth, cycle position and regulatory setting, with every figure sourced |
| Memorandum section 4 | Competitive landscape | Named competitors, relative position, barriers and where pricing power sits |
| Memorandum section 5 | Consolidated financial snapshot | Three years with reported against adjusted EBITDA and the normalization detail shown on the page |
| Memorandum section 6 | Diligence completed and open | What has been diligenced, by whom, and what remains with the timetable to close it |
| Memorandum section 7 | Projected financials | Projected profit and loss, balance sheet and cash flow across the facility term |
| Memorandum section 8 | Cash flow and coverage | Cash available for debt service with coverage by period against the proposed covenants |
| Memorandum section 9 | Transaction pro forma | Sources and uses, pro forma capital structure and entry credit metrics |
| Memorandum section 10 | Leverage trajectory | Leverage by period through the term with the deleveraging profile |
| Memorandum section 11 | Receivables and customer quality | Aging, days sales outstanding, dilution and borrowing base eligibility at the stated advance rates |
| Memorandum section 12 | Hard assets and coverage | Asset base by class and age from the management register, an orderly liquidation view where relevant, and maintenance capital expenditure |
| Memorandum section 13 | Customer base | Concentration with counterparty credit quality named customer by named customer |
| Memorandum section 14 | Lender reporting framework | Proposed weekly, monthly and quarterly reporting with the content of each package set out |
| Memorandum section 15 | Risks and mitigants | Each risk scored for EBITDA effect and probability, with the mitigant and who controls it |
| Memorandum section 16 | Key underwriting assumptions | An assumption table with a source for every line, and the conclusion that follows from it |
| Memorandum exhibits | Supporting exhibits | Projected cash flow statement and the supporting schedules referenced in the text |
| Deliverable | Component | Detail |
|---|---|---|
| Everything in the Lender Package | All sections above | Carried in full |
| Excel credit model | Dashboard | The credit team view, with metrics, coverage, covenant headroom and the scenario switch in one place |
| Excel credit model | Monthly financial statements | Monthly profit and loss, balance sheet and cash flow with a balance check |
| Excel credit model | Annual statements view | The same statements rolled to annual for the credit paper |
| Excel credit model | Company inputs | Company assumptions isolated on a single sheet |
| Excel credit model | Scenario inputs | Scenario assumptions on their own sheet with named cases |
| Excel credit model | Actuals tracking | Monthly actuals loaded so the model tracks against the plan after close |
| Excel credit model | Operations build | Operating drivers, volume, pricing and utilization behind the revenue line |
| Excel credit model | Financing | Debt tranches, fees, amortization, cash sweeps and the covenant calculations |
| Excel credit model | Treasury and expenses | Cash, interest, taxes and the expense build |
| Stress testing | Covenant headroom | Headroom by period with the breach point stated as a percentage decline in revenue |
| Stress testing | Stress cases | Named downside cases with the effect on coverage and on availability |
| Process management | Lender question management | Answers prepared for the credit team's questions on the analysis, and logged |
| Process management | Diligence coordination | Coordination across the quality of earnings, appraisal, legal and tax providers on the lender's list |
| Process management | Data room population | The lender room built and populated, with the index by workstream and every file checked before it goes live |
| Process management | Term sheet comparison | Term sheets compared line by line on pricing, structure, covenants and flexibility, so you can judge the offers in front of you |
| Deliverable | Component | Detail |
|---|---|---|
| Monthly lender package | Package contents | Financial statements, covenant calculation, borrowing base and commentary in the format the agreement requires |
| Borrowing base | Calculation and certificate | Eligibility rules applied, ineligibles calculated from the aging, and the certificate produced for signature |
| Covenant compliance | Compliance model | Each covenant calculated as defined, with headroom and a forward look |
| Covenant compliance | Compliance certificate | The certificate with the calculation behind every line attached to it |
| Weekly reporting | Cash and flash report | Weekly cash position, collections, borrowings and availability |
| Quarterly reporting | Board and discussion pack | A quarterly pack with written management discussion to the standard lenders expect |
| Calendar | Reporting calendar | Every deliverable in the agreement with its due date and the person who owns it |
The request list goes out on the first day, built around the facility and the lender, and it covers the financials and monthly detail, the earnings support, the existing debt agreements, the receivables aging and dilution history, the customer list, the asset register and the maintenance capital expenditure history.
Source records come in unaltered and the import gets logged, the monthly profit and loss is built out, and adjusted earnings and cash available for debt service are built from it before any projection is made.
Projections are built across the facility term with every assumption sourced, and coverage is then calculated by period on the covenant definitions in the proposed agreement.
Headroom is tested on each covenant and the breach point is stated as a percentage decline in revenue, which is the form a credit committee can act on.
A partner reviews every schedule before anything is released, and the tie-outs get run first, which means the package against the statements, the model outputs against the source data and every figure in the memorandum back to the model that produced it.
You receive the package and the working files behind it, followed by a walkthrough call, and on the full lender package engagement we prepare the answers to the lender's questions on the analysis for as long as the process runs.
The work gets done before the lender starts testing the file, which is the only point at which a weak add-back can still be supported properly. Most of the value sits in finding the items a credit analyst would have found anyway and then either supporting them or taking them out of the number by choice.
The starting point is the agreement you already have, since the covenant definitions in it decide how coverage has to be calculated and what headroom actually exists. The engagement then builds the revised model and the package supporting the request, including the reason for the change and what it does to the lender's position.
To start we need three years of financials and the current year to date with monthly detail, along with support for adjusted earnings and the projections with the assumptions behind them. We also need the receivables aging and dilution history, and a customer list with revenue and credit quality. Send the asset register with age and condition, the maintenance capital expenditure history, the existing debt agreements, and the proposed transaction structure where there is one.
Audit, review and compilation engagements. Any opinion or assurance on financial statements. 409A valuations and certified appraisals. ESOP valuations. Fair value measurement under ASC 805 and ASC 820. Fairness opinions. Tax return preparation and tax opinions. Securities placement, investor solicitation, and any transaction-contingent or success fee.
TEOL Capital is not a broker-dealer, an investment adviser, a placement agent or a finder. Engagements are preparation and support work. TEOL does not place securities, solicit investors or make investor introductions, and takes no success, contingency or placement fee.
The fees published here are indicative, set against the scope described on each page, and a final quote is confirmed in writing before any engagement letter is issued. Nothing published here is an offer, and no engagement begins until a letter is signed by both sides. Work outside the stated scope is identified and quoted before it begins. Full payment or a 50% deposit on engagements under $10,000, and 50% at start with 50% at delivery above that. Turnaround is quoted on receipt of a complete information request and is a target rather than a term of the engagement. Fees are reviewed quarterly, and an engagement letter issued at a published fee holds that fee regardless of any later review. Work is prepared for the client named in the engagement letter and for that client's own use. Anyone else who receives it does so for information and cannot rely on it. Management accounts, consolidations and financial statements we prepare are built from the records management maintains and remain management's responsibility. We do not guarantee any particular outcome, including a sale, a financing, a valuation conclusion or a price. Our liability on any engagement is limited to the fees paid for that engagement.