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borrowing base

The amount of money a lender will loan to a company, based on the value of the collateral pledged by the company. A company can use various things for collateral, including inventory, company equipment, or even accounts receivable. The lender determines a discount factor, a certain percentage which is multiplied against the value of the collateral, and the resulting value is the amount of money that will be available to loan to the company. For example, if a company has inventory worth $100,000, and the lender's discount factor is 50%, the borrowing base is $50,000.

Related information about borrowing base:
  1. Borrowing base - Wikipedia, the free encyclopedia
    In finance, a borrowing base is the value assigned to a collection of a borrower's assets, used by lenders to determine the initial and/or ongoing loan amount, ...
     
  2. Borrowing Base Definition | Investopedia
    The amount of money a lender will loan to a company based on the value of the collateral the company pledges. The borrowing base is usually determined by a ...
     
  3. Borrowing Base: Definition from Answers.com
    Borrowing Base Amount a lender is willing to advance against the dollar value of pledged collateral. The borrowing base is determined by multiplying the.
     
  4. How to Calculate a Borrowing Base | Chron.com
    A borrowing base is the amount of money a company can borrow. This base is determined before the company actually needs the money and resembles ...
     
  5. Borrowing base financing
    If so, it's worth thinking about borrowing base financing. Borrowing base financing offers you the flexibility to create liquidity from current assets and the ability to ...
     
  6. What is borrowing base? definition and meaning
    Definition of borrowing base: The amount of money a lender will loan to a company, based on the value of the collateral pledged by the company. A company ...
     
  7. Borrowing Base|Commodity Finance|Financial Markets ...
    In a borrowing base facility, you can utilise an agreed credit line in accordance with the current value of the goods and accounts receivables being financed.
     
  8. Mid-Con Energy Partners, LP Announces Borrowing Base Increase ...
    Nov 15, 2012 ... From Yahoo! Finance: DALLAS -- Mid-Con Energy Partners, LP ("Mid-Con Energy") announced today that it has received lender commitments ...