Asset based lending prices your data quality into the deal. Reporting that is fast, reconciled, and verifiable is not paperwork, it is how you keep advance rates up and reserves down. Olycor gets the certificate out in minutes, with the support attached.
ABL reporting is the recurring package a borrower owes its asset based lender: a borrowing base certificate with AR aging support, ineligible calculations, roll-forward reconciliations, and compliance certificates. Lenders can require certificates monthly, weekly, or even daily depending on risk, and ABL reporting software automates the cycle from ERP data to signed submission.
Every ABL cycle ends in a borrowing base certificate: collateral, less ineligibles, times the advance rate, less reserves, capped at the facility limit. An officer signs it, and under most credit agreements a materially wrong certificate is a default. The document is one page. The risk is in the fifty thousand rows behind it.
Olycor treats the certificate as computed output rather than an authored document. Data flows in from the ERP, rules run, a reviewer approves, an officer signs. Run it on demand any day of the month to see where availability stands before you need the draw. The deeper mechanics live on the borrowing base certificate software page.
Lenders reconcile three things before they trust anything else: the aging to the general ledger, the roll-forward to the aging, and the certificate to both. Gaps in any of the three invite reserves. The classic failure modes are unapplied cash sitting in a suspense account, credit memos aged in the wrong bucket, and aging by invoice date when the agreement specifies due date.
Olycor builds the aging from invoice level records using the convention your agreement actually specifies, applies cash and credits to the invoices they belong to, and computes the roll-forward from transaction activity: beginning AR, plus sales, less collections, less credits and write-offs, equals ending AR. When the tie out has a residual, it is surfaced with the transactions that drove it instead of being plugged into a line called "other".
Beyond the tie-out, the same reporting breaks show up in ABL facilities again and again. Each row below is a specific validation in Olycor.
| Where it breaks | What it looks like | The consequence |
|---|---|---|
| Unapplied cash | $150,000 of receipts sit in suspense while the invoices they pay keep aging | Past due balances are overstated, the GL tie-out shows a variance, and the examiner reserves against the noise |
| Aging convention | The aging runs on invoice date while the agreement tests days past due | On net 60 terms the whole book reads 60 days younger and ineligibles are understated |
| Cross-aging missed | An obligor sits at 27 percent past due against a 25 percent cross-aging trigger | Its entire $900,000 balance should have dropped out of the base; leaving it in is an overadvance |
| Contra accounts | You owe a customer $300,000 in rebates while funding their full receivable balance | The offset exposure is not collateral, and the field exam books it as a new ineligible |
| Concentration by spelling | One obligor split across three name variants in the aging | A 14 percent exposure passes a 10 percent cap, and the excess is found by the lender instead of by you |
| Springing cadence | Availability dips below the threshold and monthly reporting becomes weekly | A manual process that took four days now has to run every five, and late certificates become their own default risk |
Ineligibles are where availability quietly leaks. Each category below is a configured test in Olycor, with exact thresholds taken from your credit agreement. See the full explainer on ineligible receivables.
Beyond the aging cutoff, commonly 90 days from invoice date or 60 days from due date.
If a set share of an obligor's balance is past due, often 25 or 50 percent, the entire obligor drops out.
Balances above a per obligor cap, frequently 10 to 20 percent of eligible AR.
Outside permitted jurisdictions, unless covered by credit insurance or a letter of credit carve in.
Federal receivables are often excluded without an assignment of claims filing.
Amounts owed by related entities rarely count as collateral.
Disputed invoices, plus customers you also owe, netted to the offset exposure.
Work performed but not invoiced, and milestone billings before acceptance.
Two of these interact: cross-aging can pull current invoices out of the base, and concentration limits depend on obligor grouping being right. Both are computed, not eyeballed.
A worked example for a middle market borrower with a $15 million revolver. Every deduction line opens to the underlying invoices in Olycor.
| Line | Amount |
|---|---|
| Gross accounts receivable | $18,650,000 |
| Less: invoices past aging cutoff | ($1,240,000) |
| Less: cross-aged obligors | ($430,000) |
| Less: government receivables | ($520,000) |
| Less: contra accounts | ($260,000) |
| Eligible receivables | $16,200,000 |
| Advance rate at 80 percent | $12,960,000 |
| Less: dilution reserve | ($460,000) |
| Borrowing base | $12,500,000 |
| Facility limit | $15,000,000 |
| Less: outstanding loans and letters of credit | ($9,800,000) |
| Availability | $2,700,000 |
This borrower has $2.7 million to draw. Notice that $2.45 million of ineligibles cost about $1.96 million of availability at the 80 percent advance rate. Getting one wrongly excluded obligor back into the base is often worth more than a rate negotiation. Background reading: what is a borrowing base.
Your certificate lands on a credit analyst's desk, gets compared against the prior period, and anything that moved gets a question. Twice a year or so, a field examiner shows up and rebuilds your numbers from source. The quality of those interactions compounds: borrowers whose certificates check out cleanly tend to see fewer reserves, lighter exam scopes, and faster amendment conversations.
Olycor is built for that review. Each submission is signed, versioned, and packaged with its support schedules. Variance against the prior period is precomputed with the driving invoices attached. If you grant your lender reviewer access, they can trace any line to source lineage themselves, without access to your ERP. The certificate stops being a claim and starts being a record.
Go deeper with eligible receivables in the glossary, or browse every test in the rule library.
Last updated July 9, 2026. Olycor does not provide legal, tax, accounting, or credit advice. Ineligible categories, advance rates, reserves, and reporting cadence vary by credit agreement; your agreement governs.
Olycor is onboarding ABL borrowers who want the certificate computed from source data and signed with confidence, on whatever cadence the facility demands.