“If you feel that your loan covenants are unreasonable, the problem may be that your bank does not understand what drives your business,” says Carol Wagner, a principal at the Silicon Valley accounting firm of Abbott, Stringham & Lynch. Wagner advises, “Review your business’ key performance indicators with your accountant or management consultant in relation to the loan covenants. If there is a disconnect between what the bank is expecting and your key performance indicators, go to the bank and request a review.” Wagner says that loan covenants based on inappropriate key performance indicators can adversely affect a business’ line of credit, constraining cash flows and reducing investments.