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Borrowing base certificate template for receivables-backed facilities

This is the full line structure of a receivables borrowing base certificate, walked from $30 million of gross AR down to $5.5 million of availability. Every line is the kind your lender's back office expects to see, in the order they expect to see it. Use it to build your own certificate or to pressure test the one you inherited.

Who this is for

Controllers who own the monthly certificate
Treasury analysts preparing the borrowing base
CFOs reviewing before signature
Finance teams onboarding a new ABL or receivables facility

What it includes

The complete certificate line structure with an example amount on every line
A roll-forward summary that ties beginning AR to ending AR
Ineligibles broken out by category, not lumped into one number
The list of supporting schedules lenders ask for
Customization notes for ABL, securitization, and factoring facilities

The certificate line structure

The certificate has one job: walk from your receivables balance to the amount you can borrow, in a way the lender can retrace. This example starts with a roll-forward from the prior certificate, deducts ineligibles by category, applies an 85 percent advance rate, subtracts reserves, and caps the result at the facility commitment.

EXAMPLE CERTIFICATE: $30M GROSS AR TO $5.5M AVAILABILITY
Line item	Description	Example
1. Beginning gross AR	Ending balance from the prior certificate	$29,400,000
2. Plus: gross sales	New invoices billed during the period	$8,100,000
3. Less: collections	Cash applied to receivables during the period	($7,000,000)
4. Less: credit memos and dilution	Credit memos, rebates, and other noncash reductions	($450,000)
5. Less: write-offs and adjustments	Bad debt write-offs and misc adjustments	($50,000)
6. Ending gross AR	Line 1 + 2 + 3 + 4 + 5. Must tie to the aging total	$30,000,000
7. Less: past due over 90 days	Invoices beyond the aging threshold	($1,850,000)
8. Less: cross-aged obligors	All invoices of customers with 25%+ past due	($700,000)
9. Less: excess concentration	Obligor exposure above the 10% pool cap	($1,200,000)
10. Less: intercompany and affiliate	Balances owed by related parties	($400,000)
11. Less: foreign receivables	Obligors outside approved jurisdictions	($350,000)
12. Less: contra accounts	Customers who are also suppliers, net exposure	($250,000)
13. Less: disputed invoices	Invoices flagged in dispute or short-pay	($150,000)
14. Less: unapplied cash	Receipts not yet matched to invoices	($100,000)
15. Total ineligibles	Sum of lines 7 through 14	($5,000,000)
16. Eligible receivables	Line 6 less line 15	$25,000,000
17. Advance rate	Per the credit agreement	85%
18. Gross borrowing base	Line 16 x line 17	$21,250,000
19. Less: dilution reserve	Reserve for expected credit memo activity	($600,000)
20. Less: other reserves	Rent, tax, or lender-imposed reserves	($150,000)
21. Net borrowing base	Line 18 less lines 19 and 20	$20,500,000
22. Facility commitment	Maximum facility size	$22,000,000
23. Borrowing base (capped)	Lesser of line 21 and line 22	$20,500,000
24. Less: outstanding loans	Drawn balance as of the certificate date	($14,300,000)
25. Less: letters of credit	Outstanding LCs that reduce availability	($700,000)
26. Availability	Line 23 less lines 24 and 25	$5,500,000

Two ties matter more than anything else on this page. Line 6 must equal the total of the attached aging, and line 1 must equal line 6 of the prior certificate. If either breaks, the lender's first question writes itself.

Supporting schedules to attach

Detailed AR aging by invoice, with obligor, invoice date, due date, and open amount, totaling to line 6
Ineligibles detail: the invoices behind each category on lines 7 through 14, not just the category totals
AR roll-forward detail supporting lines 1 through 5, with sales and collections by week or by day if the agreement requires it
Top obligor concentration schedule showing each obligor group as a percentage of the eligible pool
Accounts payable aging if your agreement nets contras or tests payables
Reserve calculations showing how the dilution reserve and any other reserves were computed

The signature and attestation block

The certificate ends with an officer attestation, usually signed by the CFO, controller, or another authorized officer named in the credit agreement. The standard language certifies three things: the figures are true, correct, and complete in all material respects; they were prepared in accordance with the credit agreement's definitions; and no default or event of default exists as of the certificate date. Treat that last clause seriously. Signing a certificate while a covenant is tripped, even unknowingly, is itself a breach under most agreements. Build a pre-signature review step where the signer sees the covenant status alongside the numbers, and keep the signed copy with the exact data files used to produce it so any figure can be traced later.

Customization notes by facility type

The skeleton above is closest to a standard ABL certificate. The line structure holds across facility types, but the categories, rates, and reserves shift with the structure of the deal.

Asset-based lending: often adds inventory as a second collateral block with its own advance rate, commonly 50 to 65 percent of eligible inventory at cost, before the combined base is computed
Trade receivables securitization: replaces the flat advance rate with a dynamic enhancement formula, so lines 17 through 20 become a reserve calculation driven by dilution and loss ratios
Factoring and receivables purchase: the certificate becomes a schedule of purchased receivables, and eligibility is tested invoice by invoice at purchase rather than pool wide at month end
Multi-currency facilities: add a currency summary showing each currency's gross AR, the FX rate used, and the rate source and date

Get the working spreadsheet version

Olycor is in early access. Sign up and we will send you the certificate template as a working spreadsheet, with the roll-forward, ineligibles, and reserve lines already formula-linked, and show you how the platform produces the same certificate from your raw AR data.

Get early access

What this resource does not replace

Your credit agreement's definitions, which control every line on the real certificate
Legal or accounting advice on your facility
Your lender's review and any certificate form attached to your agreement

Frequently asked questions

How often do borrowers submit a borrowing base certificate?+

Monthly is the most common cadence for receivables facilities, due 15 to 20 days after month end. Facilities with tighter liquidity, or borrowers in a trigger period, often move to weekly or even daily certificates. Your credit agreement sets the schedule.

What happens if the certificate does not tie to the aging?+

Expect the lender to bounce it back with questions, and repeated breaks erode trust fast. The gross AR line should equal the aging total to the dollar, and the beginning balance should equal the prior certificate's ending balance. Reconcile both before anyone signs.

Can I just use my lender's certificate form?+

If your credit agreement attaches a certificate exhibit, use it. That form governs. This template is for building the supporting workbook behind the form, and for borrowers whose agreements require a certificate but do not prescribe one.