Downside Checklist Before You Say Yes
Mar 03, 2026
A lightweight checklist to pressure-test downside risk in a direct lending case.
Before approving a deal, run a downside checklist in plain language.
Revenue + margins
- What would break under a mild recession?
- Is margin compression temporary or structural?
Free resource
Get the free 1-page Credit Memo outline
A quick structure you can reuse for interview cases and credit write-ups.
Liquidity + maturity wall
- How much runway exists under stress?
- Are there near-term maturities that force a bad refinancing?
Sponsor + governance
- Is the sponsor likely to support or extract value?
- What are the conflict points in docs?
Recovery path
- If this turns, what protects principal?
- What is the realistic enterprise value floor?
Your interview answer should sound like this checklist: concrete, prioritized, and decision-ready.
Next step
Get the $97 Core Pack
Full technical reps, deal case prompts, and a reusable credit memo template.