Difference between revisions of "Borrowing Base"
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== Definition == | == 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. <ref>Standard Definitions for Techniques of Supply Chain Finance, Global Supply Chain Finance Forum</ref> | + | '''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. |
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| + | 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. <ref>Standard Definitions for Techniques of Supply Chain Finance, Global Supply Chain Finance Forum</ref> | ||
== See Also == | == See Also == | ||
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[[Category:Supply Chain Finance]] | [[Category:Supply Chain Finance]] | ||
| + | [[Category:Project Finance]] | ||
Latest revision as of 21:32, 16 March 2021
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
- ↑ Standard Definitions for Techniques of Supply Chain Finance, Global Supply Chain Finance Forum
