Every definition here comes with the calculation behind it, the data fields it depends on, and where it shows up on a borrowing base certificate or servicer report. Written for treasury, finance, and lending teams.
A borrowing base certificate is a signed report a borrower submits to its lender that calculates how much credit its collateral currently supports. It starts with gross receivables, removes ineligible invoices, applies advance rates and reserves, and arrives at availability. Most facilities require one monthly, and some require it weekly or daily.
Borrowing availability is the lesser of your net borrowing base and the commitment, minus outstandings and letters of credit. See the full walk with numbers.
Cash application matches customer payments to specific invoices. Learn why weak application distorts aging, dilution, and borrowing base reporting.
A collateral report is any periodic report describing the assets behind a facility: certificates, agings, roll-forwards. See what a typical package contains.
A deterministic calculation gives the same output from the same inputs and rules, every time. Learn why lenders require it and how it differs from AI output.
The dilution reserve protects lenders from credit memos, rebates, and returns. See the standard securitization formula with a worked numeric example.
Eligible receivables are the invoices that count toward your borrowing base after eligibility tests. See how the tests work and what gets excluded.
Excess concentration is the portion of an obligor's receivables above the concentration limit. See how the deduction is calculated and how to manage it.
Facility rules are the negotiated parameters that drive every borrowing base calculation: eligibility, advance rates, caps, reserves, and triggers.
How lenders verify collateral reporting: certificate review, tie outs, field exams, and variance questions, and what traceable borrower output changes.
The loss reserve covers expected defaults in a receivables pool. See the stress factor, default ratio, and loss horizon ratio formula with real numbers.
Net receivables balance is the pool value after ineligibles and excess concentration. See the walk from gross AR to NRB with a worked example.
An obligor group aggregates affiliated customer accounts as one obligor for concentration limits. Learn how grouping works and why it changes eligibility.
A receivables aging report buckets open invoices by days outstanding. Learn invoice date versus due date aging and the pitfalls that distort it.
A receivables pool is the collateral population in a securitization or purchase program. Learn cutoff dates, composition, eligibility, and revolving pools.
A receivables roll-forward reconciles beginning AR plus sales less collections, dilution, and write-offs to ending AR. See a worked example that ties.
Required credit enhancement is the greater of loss plus dilution reserves and a floor. See how the dynamic calculation works with a numeric example.
A servicer report is the monthly pool report in a receivables facility: collections, defaults, dilution, eligibility, and reserves. Learn what goes in it.
A signed borrowing base certificate is an officer's attestation. Learn what the signature certifies, who signs, and why pre-signature review matters.
Source-level traceability means every reported figure traces to an input file, row, mapping decision, and rule version. See one excluded invoice end to end.
The yield and servicing reserve covers financing costs and servicer fees during a pool wind down. See the DSO based formula with a worked example.
The rule library covers the specific eligibility tests and adjustments that shape a borrowing base, with worked examples for each one.
Browse the rule library →