Financial Covenants
Tangible net worth
Also known as: TNW
status: draft
Net worth after excluding intangible assets such as goodwill, and sometimes other items defined in the facility documents.
What to watch
Run the covenant calculation before signing. Definitions often exclude assets management assumes count.
Referenced in 45 topics
ABF vs. traditional lending (when ABF makes sense, when it doesn't) foundations Amendments and waivers lifecycle-events Auto loans and leases asset-classes Bank balance sheet capital-sources Container leases asset-classes Covenant compliance monitoring operations-lifecycle Covenant cures and waivers mechanics Covenants mechanics Credit analysis accounting-valuation Credit funds and private capital capital-sources Deal autopsy: why deals fail playbooks Deal structures asset-classes Documentation negotiation playbooks Due diligence question bank documentation Early-stage financing guide playbooks Entity-level triggers mechanics Financial covenants mechanics Managing multiple facilities playbooks Marketplace lending and fintech-originated asset-classes Navigating the deal process playbooks Negative and affirmative covenants mechanics Ongoing portfolio management operations-lifecycle Ongoing portfolio management (capital provider) playbooks Participation structures structures Preparing your data room playbooks Reporting requirements operations-lifecycle Revenue-based financing asset-classes Sample term sheet (annotated) appendix Selecting a servicer counterparties Servicer ratings and evaluation counterparties Servicer selection and oversight playbooks Servicing operations operations-lifecycle Small business loans (including SBA 7(a)) asset-classes Structural terms negotiation playbooks Term securitization (ABS/MBS) structures Term sheet anatomy documentation The originator's readiness assessment playbooks Top originator mistakes playbooks Trade receivables and supply chain finance asset-classes Treasury management for multi-facility originators playbooks Waiver, amendment, or acceleration playbooks Warehouse facilities structures What capital providers care about playbooks What is negotiable by structure type playbooks Workouts, restructuring, and enforcement lifecycle-events