Borrowing base definition: Copy, customize, and use instantly
Introduction
The term "Borrowing Base" refers to the total amount of credit available to a borrower based on specific assets' value, typically used in asset-based lending. It is essential for determining loan limits, managing risk, and ensuring financial security for both lenders and borrowers.
Below are various examples of how "Borrowing Base" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Borrowing Base" as loan collateral calculation
This definition ties "Borrowing Base" to the calculation of a secured loan based on eligible assets.
"Borrowing Base" means the aggregate value of eligible collateral, including accounts receivable, inventory, and other assets, subject to specified advance rates and lender deductions.
Definition of "Borrowing Base" as accounts receivable-based lending
This definition connects "Borrowing Base" to loan amounts determined by outstanding receivables.
"Borrowing Base" refers to the portion of a credit facility based on the borrower’s eligible accounts receivable, adjusted for aging, dilution, and concentration limits.
Definition of "Borrowing Base" as inventory-backed credit
This definition links "Borrowing Base" to the availability of funds secured by inventory.
"Borrowing Base" means the sum of eligible inventory values, adjusted for marketability, obsolescence, and lender-defined advance rates.
Definition of "Borrowing Base" as fluctuating loan eligibility
This definition applies "Borrowing Base" to a dynamic credit calculation that adjusts over time.
"Borrowing Base" refers to the maximum loan amount a borrower may draw, recalculated periodically based on changes in eligible assets and lender discretion.
Definition of "Borrowing Base" as asset-based lending limit
This definition ties "Borrowing Base" to the valuation of assets for determining borrowing capacity.
"Borrowing Base" means the aggregate value of the borrower’s qualifying assets, including but not limited to accounts receivable, inventory, and equipment, adjusted for lender-specified reserves and discounts.
Definition of "Borrowing Base" as revolving credit determination
This definition connects "Borrowing Base" to credit availability in a revolving loan structure.
"Borrowing Base" refers to the total amount a borrower may access under a revolving credit facility, determined by applying lender-approved advance rates to eligible assets.
Definition of "Borrowing Base" as real estate-backed financing
This definition links "Borrowing Base" to loans secured by real estate assets.
"Borrowing Base" means the assessed value of qualifying real estate assets used to secure loan commitments, subject to lender-determined loan-to-value ratios.
Definition of "Borrowing Base" as working capital calculation
This definition applies "Borrowing Base" to ensuring sufficient liquidity for operational needs.
"Borrowing Base" refers to the value of short-term assets available for securing a loan, including accounts receivable, inventory, and other liquid assets, net of applicable reserves.
Definition of "Borrowing Base" as leveraged lending tool
This definition ties "Borrowing Base" to risk assessments in leveraged financing.
"Borrowing Base" means the maximum amount a lender will extend based on the borrower’s asset quality, adjusted for concentration limits and risk factors.
Definition of "Borrowing Base" as eligibility test for loan disbursement
This definition connects "Borrowing Base" to ensuring compliance with lender-imposed thresholds.
"Borrowing Base" refers to the aggregate value of a borrower’s pledged collateral, periodically evaluated to determine continued loan eligibility.
Definition of "Borrowing Base" as receivable-based credit structure
This definition links "Borrowing Base" to loans backed primarily by receivables.
"Borrowing Base" means the sum of eligible accounts receivable after applying aging, dilution, and collectability adjustments, as defined by the lender.
Definition of "Borrowing Base" as a funding cap mechanism
This definition applies "Borrowing Base" to limiting borrowing capacity based on asset quality.
"Borrowing Base" refers to the maximum financing a borrower may obtain, determined by periodic evaluations of asset value and lender-imposed constraints.
Definition of "Borrowing Base" as structured credit support
This definition ties "Borrowing Base" to structured financing arrangements.
"Borrowing Base" means the value of pledged collateral supporting a credit facility, subject to adjustments for ineligible assets and lender-required reserves.
Definition of "Borrowing Base" as dynamic loan recalibration factor
This definition connects "Borrowing Base" to regularly updated loan determinations.
"Borrowing Base" refers to the continuously updated calculation of available credit, considering asset value fluctuations and lender adjustments.
Definition of "Borrowing Base" as factoring-based credit assessment
This definition links "Borrowing Base" to funding based on accounts receivable factoring.
"Borrowing Base" means the total outstanding invoices that qualify for lending, after deductions for non-qualifying receivables and factoring fees.
Definition of "Borrowing Base" as secured inventory funding
This definition applies "Borrowing Base" to inventory-based credit facilities.
"Borrowing Base" refers to the portion of inventory assets eligible for collateralized lending, after applying reserves for slow-moving or obsolete stock.
Definition of "Borrowing Base" as a corporate debt funding metric
This definition ties "Borrowing Base" to assessing corporate debt capacity.
"Borrowing Base" means the financial metric used to calculate corporate borrowing limits based on a company’s secured asset pool.
Definition of "Borrowing Base" as compliance metric for lenders
This definition connects "Borrowing Base" to regulatory and contractual borrowing limits.
"Borrowing Base" refers to the credit facility constraint that ensures loan exposure remains within allowable secured asset value limits.
Definition of "Borrowing Base" as an advance rate-determined funding source
This definition links "Borrowing Base" to a funding structure based on advance rates.
"Borrowing Base" means the sum of eligible assets multiplied by lender-defined advance rates, adjusted for required reserves and concentration limits.
Definition of "Borrowing Base" as minimum asset valuation for borrowing
This definition applies "Borrowing Base" to setting a floor for secured lending.
"Borrowing Base" refers to the baseline collateral value that a borrower must maintain to access and retain credit facility availability.
Definition of "Borrowing Base" as maximum loan amount determinant
This definition ties "Borrowing Base" to defining the upper borrowing limit.
"Borrowing Base" means the ceiling on a borrower’s available credit, based on real-time collateral valuation and lender restrictions.
Definition of "Borrowing Base" as leverage monitoring tool
This definition connects "Borrowing Base" to tracking a company’s financial leverage.
"Borrowing Base" refers to the control mechanism used to ensure that borrowed amounts remain within allowable leverage ratios.
Definition of "Borrowing Base" as bridge loan calculation metric
This definition links "Borrowing Base" to determining interim financing limits.
"Borrowing Base" means the collateralized amount used to secure a bridge loan, subject to lender-imposed adjustments and repayment conditions.
Definition of "Borrowing Base" as distressed asset lending benchmark
This definition applies "Borrowing Base" to funding options for distressed companies.
"Borrowing Base" refers to the valuation of distressed assets that qualify for secured lending, with applicable write-downs and lender discounts.
Definition of "Borrowing Base" as bank lending covenant compliance factor
This definition ties "Borrowing Base" to borrower compliance with loan covenants.
"Borrowing Base" means the sum of acceptable collateral used to measure compliance with loan agreement financial covenants.
Definition of "Borrowing Base" as risk-adjusted credit availability
This definition connects "Borrowing Base" to lender-controlled risk factors.
"Borrowing Base" refers to the dynamic calculation of available credit, incorporating risk-weighted asset adjustments.
Definition of "Borrowing Base" as liquidity buffer calculation
This definition links "Borrowing Base" to ensuring liquidity in lending arrangements.
"Borrowing Base" means the portion of secured assets allocated as a liquidity buffer to sustain continued borrowing capacity.
Definition of "Borrowing Base" as distressed debt restructuring tool
This definition applies "Borrowing Base" to restructuring loan terms in distressed situations.
"Borrowing Base" refers to the collateral revaluation framework applied in debt restructuring to determine ongoing loan eligibility.
Definition of "Borrowing Base" as trade finance eligibility metric
This definition ties "Borrowing Base" to determining loan limits for trade financing.
"Borrowing Base" means the total eligible trade receivables and inventory value, adjusted for currency risk, dilution, and concentration limits.
Definition of "Borrowing Base" as cash flow-backed borrowing threshold
This definition connects "Borrowing Base" to cash flow-based asset valuation.
"Borrowing Base" refers to the maximum loan amount available based on the borrower’s cash-generating secured assets, net of lender-imposed reserves.
Definition of "Borrowing Base" as intercreditor agreement calculation
This definition links "Borrowing Base" to multi-lender financing structures.
"Borrowing Base" means the portion of pledged collateral allocated among multiple lenders in accordance with intercreditor agreements.
Definition of "Borrowing Base" as energy sector lending determinant
This definition applies "Borrowing Base" to resource-backed lending.
"Borrowing Base" refers to the valuation of oil, gas, or other energy reserves used to secure credit facilities, subject to periodic redetermination.
Definition of "Borrowing Base" as shipping industry financing benchmark
This definition ties "Borrowing Base" to asset-backed lending in maritime industries.
"Borrowing Base" means the assessed value of vessels, cargo, and receivables used as collateral for maritime loans, subject to lender risk evaluations.
Definition of "Borrowing Base" as leveraged buyout funding metric
This definition connects "Borrowing Base" to acquisition financing structures.
"Borrowing Base" refers to the eligible asset pool securing leveraged buyout loans, adjusted for post-acquisition financial stability considerations.
Definition of "Borrowing Base" as hedge fund credit determination
This definition links "Borrowing Base" to financing for hedge fund portfolios.
"Borrowing Base" means the net asset value of marginable securities and liquid investments pledged as collateral for hedge fund credit facilities.
Definition of "Borrowing Base" as corporate bond-backed borrowing threshold
This definition applies "Borrowing Base" to financing arrangements backed by corporate bonds.
"Borrowing Base" refers to the aggregate market value of investment-grade corporate bonds pledged as collateral, adjusted for market fluctuations and liquidity factors.
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