Banks request an IBR when they have concerns about a borrower’s ability to repay — typically triggered by missed loan repayments, covenant breaches, requests for additional funding, or deteriorating financial performance. The bank wants an objective, expert view of whether the business is viable and what options exist to protect their position. While the bank often initiates and funds the IBR, the reviewer is expected to act independently and report honestly on the findings. For directors, engaging constructively with an IBR is usually the best approach — the outcome can open the door to a refinancing or restructuring rather than enforcement action.
