A borrowing base sets the maximum amount that a borrower can access through an asset-based loan. Borrowers and lenders negotiate the calculation of the borrowing base by determining the value of different types of collateral (such as cash, accounts receivable, inventory and equipment) that are included. Learn more about the calculation of a borrowing base and its components below. For additional information, please reach out to Tyler Garaffa.

Prepared in collaboration with Finley Technologies, Inc.