Borrowing Base

From Open Risk Manual


Borrowing Base the amount of money a lender will loan to a borrower based on the value of the Collateral or Security that the borrower pledges.

The borrowing base is usually determined by Margining, where the lender determines a Discount Factor that is multiplied by the value of the collateral; the result is the amount that will be loaned to the company. [1]

See Also


  1. Standard Definitions for Techniques of Supply Chain Finance, Global Supply Chain Finance Forum