Tests projected financials against covenant thresholds quarter by quarter via a bundled calculator, computing headroom percentage and flagging the first quarter headroom drops below a warning threshold, not just the quarter of actual breach, so the lender conversation starts while options are still wide open. Use whenever the user needs to monitor covenant compliance, is projecting whether a covenant will hold under a forecast, or has covenant tracking that only reports pass or fail with no early-warning threshold before an actual breach.
