Borrowing Base

From Open Risk Manual

Definition

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

References

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

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