BORROWING BASE CERTIFICATE SOFTWARE

Borrowing base certificate software for trade receivables finance

Your team should not spend three days a month rebuilding a spreadsheet the lender will question anyway. Olycor turns raw receivables data into a signed certificate your bank can verify, line by line, back to the source.

DIRECT ANSWER

Borrowing base certificate software automates the preparation of the compliance document a borrower submits to its lender each reporting period. It ingests receivables data, applies the credit agreement's eligibility tests and reserves, computes availability, and produces a signed, audit-ready certificate with every value traceable to source records.

THE PROBLEM IT REPLACES

What does borrowing base certificate software actually do?

A borrowing base certificate looks simple: a one page summary of collateral value and availability. What sits behind it is not simple. Someone has to pull aging detail from the ERP, reconcile it to the general ledger, apply every eligibility test in the credit agreement, cap concentrations, compute reserves, and get an officer comfortable enough to sign. In most finance teams that is a spreadsheet with 14 tabs and one person who understands it.

Software replaces the spreadsheet with a pipeline. Data comes in from wherever it lives, rules run as configured code, and the output is a certificate where any line can be opened up to show the invoices behind it. The number stops depending on who prepared it. If you want the background first, start with what a borrowing base is or the walkthrough on what goes into a certificate.

FROM RAW DATA TO SIGNED CERTIFICATE

Four steps between your ERP and your lender.

AI handles the interpretation. Deterministic rules handle the math. The line between the two is deliberate: nothing probabilistic ever touches a calculated number.

01INPUT

Data arrives however it arrives

AR aging exports from NetSuite or SAP, a CSV from a subsidiary, a PDF statement, a spreadsheet a controller emails on the last business day. Olycor accepts all of it.

02NORMALIZE

AI structures the mess

Fields are mapped, obligor names are matched across systems, dates and currencies are standardized, and anything ambiguous is flagged for a human decision.

03CALCULATE

Rules run deterministically

Eligibility tests, concentration limits, reserves, and advance rates run as code configured to your credit agreement. Same inputs, same rules, same number, every time.

04CERTIFY

The certificate is signed

A reviewer approves, an officer signs, and the lender receives a standardized certificate where every value traces back to source records.

DATA NORMALIZATION

How does Olycor normalize ERP, CSV, PDF, and email inputs?

Most certificate errors are data errors, not rule errors. A due date column mapped as an invoice date misstates aging before any eligibility test runs. The same customer spelled "Acme Corp", "ACME Corporation", and "Acme (US)" across three subsidiaries understates concentration. Olycor's AI layer exists to catch exactly this class of problem.

ERP exports and direct connections are mapped to a canonical receivables model: invoice number, obligor, invoice date, due date, open amount, currency, dispute flags. CSVs with inconsistent headers are interpreted and mapped with confidence scores. PDFs and emailed statements are extracted into the same structure. Obligor names are matched into legal entity groups so concentration is measured against the real counterparty, not the spelling.

Anything the AI is not sure about becomes an exception for a person to resolve, and the resolution is remembered for next month. The AI interprets. It never computes a number on the certificate.

THE CALCULATION

Eligibility, reserves, concentration limits, and availability

Every certificate is a walk from gross AR to availability. Here is a simplified example of the walk Olycor computes, where each deduction can be opened to the invoice level.

GROSS AR TO AVAILABILITY
LineAmount
Gross accounts receivable$38,400,000
Less: invoices over 90 days past due($2,100,000)
Less: cross-aged obligors($740,000)
Less: foreign obligors outside permitted jurisdictions($1,050,000)
Less: disputed invoices and contra accounts($310,000)
Eligible receivables$34,200,000
Advance rate at 85 percent$29,070,000
Less: dilution and other reserves($1,270,000)
Borrowing base$27,800,000
Facility limit$30,000,000
Less: outstanding loans($21,500,000)
Availability$6,300,000

The tests behind those deductions come straight from the credit agreement: eligibility tests on aging, jurisdiction, and disputes, customer concentration limits, cross-aging, and reserves driven by dilution. Thresholds vary by facility, so all of them are configured to the facility rules, not assumed.

SOURCE-LEVEL TRACEABILITY

Every number on the certificate has a paper trail

When a lender asks why eligible receivables dropped $2.1 million this month, the answer should take one click, not a research project. In Olycor, the $2.1 million opens into the 46 invoices that aged past 90 days, each linked to the file and row it came from, the rule version that excluded it, and the timestamp of the run.

That trail serves three audiences. Your own reviewers approve a certificate they can actually inspect. Your auditors get lineage instead of a spreadsheet archaeology exercise. And your lender's field examiners reconcile the certificate to source in hours instead of days, which tends to show up later in how the relationship is priced and managed.

INDEPENDENT VERIFICATION

What lenders can verify

A certificate is only as strong as what a skeptical reviewer can check without your help. From Olycor output, a credit analyst or field examiner can independently confirm each of the following. None of this replaces lender review; it makes the review faster and less adversarial.

Every line traces to source records

Each value on the certificate opens to the invoices behind it, and each invoice links to the file and row it arrived in.

The roll-forward ties to the prior period

Beginning AR plus sales, less collections, credits, and write-offs equals ending AR, reconciled against last period's certificate instead of plugged.

Exclusions name the rule that fired

An ineligible invoice shows the test and the threshold, for example 94 days past invoice date against a 90 day cutoff, not just a category total.

Reserves show their computation

A $1,270,000 dilution reserve opens to the credit memo history, the average ratio, and the factor applied to it.

The certificate reconciles to the attached aging

Gross AR ties to the aging detail by invoice count and by amount, and any variance to the general ledger is itemized before signing.

Rule versions are pinned to the credit agreement

The tests that ran are versioned, so an amendment shows up as a dated configuration change rather than a quiet spreadsheet edit.

COMMON REPORTING BREAKS

Where certificate preparation breaks down

The same handful of failures account for most misstated certificates. Each one below is a specific check in Olycor, caught at ingestion or before signing rather than during a field exam.

COMMON CERTIFICATE BREAKS
Where it breaksWhat it looks likeThe consequence
Aging conventionThe aging is built on invoice date while the credit agreement tests days past dueOn net 60 terms every invoice reads 60 days younger, and receivables that belong in ineligibles stay in the base
Credit memo handling$380,000 of credit memos sit in the aging as positive balancesGross AR is overstated and the dilution history behind the reserve is understated at the same time
Obligor groupingOne customer billed as Acme Corp, ACME Corporation, and Acme (US)A 14 percent concentration reads as three positions under a 10 percent cap, and the excess is never deducted
Roll-forward plugsEnding AR is forced to tie with a $220,000 line called otherThe certificate reconciles to nothing, and the field exam opens with a finding instead of a walkthrough
Unapplied cash$150,000 of receipts sit in a suspense account while the invoices they pay keep agingThe aging overstates past due AR and the GL tie-out shows a variance nobody can explain quickly
Stale rulesThe spreadsheet still tests 90 days past invoice after an amendment moved the facility to 60 days past dueEligibility is computed against an agreement that no longer exists, which is how misstated certificates happen
TWO SIDES, ONE NUMBER

Built for borrowers. Verifiable for banks.

FOR THE BORROWER

Days of prep become minutes

You keep control of your data and your submission. Run the calculation any day of the month to see availability before you need it, model what a large invoice or a slow collections week does to the number, and stop depending on the one analyst who knows the spreadsheet.

FOR THE LENDER

A certificate that can be checked

Olycor is borrower software, but the output is built to be verified. Certificates are standardized, signed, and traceable to source records, so a credit officer or field examiner can test any line independently instead of taking the summary on faith.

Frequently asked questions

How often do lenders require borrowing base certificates?+
Monthly is the most common cadence for ABL facilities, tied to month end AR aging. Larger or riskier facilities often move to weekly, and some agreements require a certificate with every draw request. Springing provisions can also tighten the cadence when availability falls below a threshold, so a monthly facility can become a weekly one overnight.
Can borrowing base certificates be automated from ERP data?+
Yes. The inputs are AR aging detail, credit memos, unapplied cash, and obligor master data, all of which live in the ERP. Olycor ingests exports or direct connections, maps the fields, applies the facility's eligibility rules deterministically, and produces the certificate. The judgment calls, like resolving a new obligor name, are surfaced for review rather than buried.
What controls exist around certificates prepared by the borrower?+
A certificate is a compliance document signed by an officer of the company, so lenders expect controls: a repeatable calculation, review and approval before signing, and the ability to trace any line back to source records. Olycor supports role separation between preparer and approver, keeps a full audit trail of inputs and rule versions, and signs the final output.
What happens if a certificate is wrong?+
Most credit agreements treat a materially misstated certificate as a default trigger, and an overadvance discovered later must typically be repaid immediately. That is why deterministic calculation matters: the same inputs and the same rules produce the same number every time, and every exclusion is documented so errors are caught before signing, not during a field exam.
Does Olycor work if my facility rules are unusual?+
Eligibility tests, advance rates, reserves, and caps are configured to the facility rules in your credit agreement rather than hardcoded. Two borrowers with identical receivables can produce very different certificates, and that is expected. If your agreement has a nonstandard cross-aging threshold or a bespoke reserve formula, it is configured, not approximated.

RELATED READING

Or browse the full receivables finance glossary and the eligibility rule library.

SOURCES & FURTHER READING

  1. OCC Comptroller's Handbook: Asset-Based Lending on borrowing base monitoring as a collateral control and reporting frequency, which can run as often as daily.
  2. U.S. Bank, Answering the ABL lending question on monthly or weekly certification cadence and the role of software in preparing borrowing base certificates.
  3. Bank of America, What is asset-based lending on the recurring borrowing base reporting that ABL facilities require.

Last updated July 9, 2026. Olycor does not provide legal, tax, accounting, or credit advice. Facility terms, eligibility criteria, and reserve mechanics vary by credit agreement; your agreement governs.

Sign your next certificate with a straight face.

Olycor is onboarding borrowers who are done rebuilding the borrowing base in a spreadsheet every month.