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Finance & Banking vocabulary · Loans & Credit

Borrowing base

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, borrowing base means: The amount of eligible collateral value used to determine borrowing availability under a lending formula.

In Turkish: kredi kullanımına esas teminat tutarı

How it is used

Use in asset-based lending; eligibility rules and advance rates affect the calculated amount.

Example sentences

  1. Overdue invoices were removed from the borrowing base under the agreement.

    Not every receivable qualifies as eligible collateral.

  2. Higher eligible inventory increased the company's borrowing base.

    Available credit can change as qualifying assets change.

Common collocations

  • borrowing base calculation
  • borrowing base certificate
  • collateralAn asset, such as property, cash or securities, that a borrower pledges to a lender and that the lender can sell if the loan is not repaid.
  • credit facilityAn arrangement in which a bank agrees to lend a company up to a set amount, which the company can draw on as needed under agreed terms.

More terms: Loans & Credit

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This page explains English vocabulary for learners. It is not financial advice.