CREDITORS
Covers the CFO’s governance responsibilities across all forms of debt, including bank credit facilities, venture debt, revenue-based financing, invoice factoring, asset-based lending, and mezzanine debt. It addresses covenant design and monitoring, lender relationship management, refinancing, distressed debt scenarios, and communication protocols.
The CFO’s Creditor Governance Mandate
Why creditor governance is a CFO core competency. Six debt instruments. What lenders need and why. CFO legal obligations. Creditor risk register. Debt governance…
Bank Credit Facilities — Lines, Terms, and Traps
Bank vs. venture debt differences. Revolver structure and mechanics. Borrowing base eligibility and certification. Term loan amortisation. Financial maintenance covenants. Negative covenants. Ironclad revolver…
Venture Debt — The Pre-Profitability Capital Tool
What venture debt is and is not. True cost of capital. Warrants — the hidden equity cost. Covenant architecture. MAC clause anatomy. When to…
Revenue-Based Financing — True Cost of Capital
What RBF actually is. IRR calculation vs. headline cost. ARR stage framework for RBF decisions. RBF structures. Eligibility and advance rates. RBF covenants. RBF…
Invoice Factoring and Receivables Finance
What factoring is and why SaaS companies use it. Advance rates, fees, and true cost. Recourse vs. non-recourse. Dilution problem. Concentration limits. Factoring as…
Asset-Based Lending — Borrowing Against What You Own
What ABL is and how it differs. Equipment financing for SaaS. Inventory-based lending. IP-backed financing. Collateral perfection, monitoring, compliance. Advance rates and borrowing base.…
Mezzanine and Subordinated Debt
What mezzanine debt is and why it is expensive. Capital stack position. PIK interest — the compounding cost trap. Mezzanine covenants. Equity kickers. When…
Covenant Architecture — Design, Monitoring, and Breach
Covenant architecture as CFO design function. Negotiating covenants. Covenant dashboard — the early warning system. Trajectory modelling. Breach response — first 48 hours. Waiver…
The Lender Relationship — Beyond the Closing Dinner
Why lender relationships are not self-managing. What each lender needs. Monthly lender update design. Proactive disclosure as governance tool. Managing multiple lenders. Annual review.…
Refinancing and Debt Restructuring
When refinancing is right. The refinancing process — five phases. Negotiating better terms at renewal. Amending vs. replacing. Amendment process. Refinancing into a new…
Distressed Debt — When the Covenants Break
Distress recognition protocol. Event of default mechanics. Standstill agreements. Out-of-court restructuring. CFO personal obligations. Communication in distress. Ironclad severe distress scenario.
The CFO-Lender Communication Protocol
Communication standard — proactive, accurate, consistent. Monthly update templates by lender type. Disclosure decision framework. Writing the difficult update. Compliance certificate communication. Waiver request…
Debt Governance Failures That Cost the CFO
Common cause of debt governance failures. Covenant never modelled. Borrowing base overstated. Cross-default unmapped. MAC clause unread. Refinancing that cost the cap table. Five…
Case Studies — Three Creditor Finance Scenarios
Three creditor finance case studies: the revolver freeze, the venture debt MAC, and the factoring trap. Each with full scenario, financial analysis, and Q&A.
Master Summary
50 essential creditor governance concepts. Governance architecture reference card. Ironclad complete creditor governance summary. 35-term glossary. 12-framework library. Series reading guide.