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
- ↑ Standard Definitions for Techniques of Supply Chain Finance, Global Supply Chain Finance Forum
