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A/R Finance & Factoring Terms GLossary

What isBorrowing Base

Borrowing Base is the value assigned to a company’s assets, which is then used by lenders as criteria for providing availability under a loan agreement. These assets can sometimes be considered as collateral for the loan. Inventory and Accounts Receivable Asset Based Lending will many times use a Borrowing base to determine the eligible assets that can be borrowed against.

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