Borrowing Base Calculator

Asset-based facilities size borrowing base from collateral. This calculator computes the ceiling.

Eligible collateral

Advance rate %

Reserves/ineligibles

Concentration limit $

Borrowing base

$22,500,000

Advanced value

$28,000,000

Total exclusions

$5,500,000

How the math works

Base = (collateral × advance rate) − ineligibles − concentration exclusions.

Calculate base monthly for warehouse facilities. Any collateral aging into ineligibility reduces base; late aggressive monitoring causes borrow-base deficiencies that trigger accelerated paydown.

How to Use

Enter eligible collateral value.
Enter advance rate %.
Enter reserves/ineligibles.
Enter concentration limit $.
Read borrowing base.

Frequently Asked Questions

Advance rate?

Stabilized real estate 65-75%. Bridge/value-add 50-65%. Construction 60-70% on cost-to-complete. Loan/receivables portfolios 80-95% on current pay quality.

Ineligibles?

Past-due receivables, foreign accounts beyond country concentration, one-off assets that don't fit eligibility criteria, related-party obligations. Each reduces usable collateral.

Concentration limits?

Per-borrower 5-10% of base. Per-geography 15-25%. Per-asset-class 40-60%. Exceeding limits excludes incremental collateral from base even if eligible by category.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.