Jargon File

  

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Borrowing base

  1. A limitation placed on the ability of a borrower to utilize a loan commitment, generally based on a percentage of the borrower's accounts receivable and inventory.
  2. A standard borrowing base would be equal to 80% of the face amount of eligible receivables and %50 of the value of eligible inventory (at wholesale, not retail).
  3. View a Borrowing Base definition.