Practical Law Glossary Item 3-382-3282 (Approx. 3 pages)
Glossary
Borrowing Base
In the context of asset-based lending, the maximum amount of revolving loans that lenders are willing to lend to a borrower at a given point in time based on the value of certain assets of the borrower (rather than its cash flow). The borrowing base is typically the lesser of the lenders' commitments and certain eligible assets (such as an agreed percentage of eligible accounts and eligible inventory).