Borrowing Base Calculator
Estimate line availability from A/R and inventory collateral
Asset-based lines of credit are usually limited by a borrowing base: eligible receivables and inventory multiplied by lender advance rates, less reserves. Use this calculator to estimate availability or spot a potential overadvance before sending a borrowing base certificate.
- ✓Calculates eligible A/R after aged and cross-aged exclusions
- ✓Applies A/R and inventory advance rates
- ✓Subtracts lender reserves and current line balance
- ✓Shows availability or overadvance status
| A/R borrowing base | $602,000 | 80% of eligible A/R |
| Inventory borrowing base | $300,000 | 50% of eligible inventory |
| Gross borrowing base | $902,000 | Before reserves |
| Less reserves | -$100,000 | Dilution, landlord, tax, concentration, or other lender reserves |
| Net borrowing base | $802,000 | Maximum supported line balance |
| Current line balance | -$850,000 | Outstanding balance today |
| Availability / overadvance | -$48,000 | Positive means available; negative means overadvanced |
Frequently Asked Questions
What is a borrowing base?
A borrowing base is the amount a lender is willing to lend against eligible collateral, commonly accounts receivable and inventory, after advance rates and reserves.
Are receivables over 90 days eligible?
Usually no. Many lenders exclude receivables over 90 days and may also exclude customers with too much aged debt through cross-aging rules.
What are availability reserves?
Reserves are lender holdbacks for risks like dilution, tax liens, landlord claims, customer concentration, or other collateral issues.
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This tool is for educational purposes only. Results do not constitute a loan offer, pre-qualification, or guarantee of financing. Consult a licensed financial professional for advice specific to your situation.