Asset-Based Finance (ABF)

Financing where repayment is primarily sourced from cash flows generated by a specific pool of financial or real assets, rather than from the general operating cash flows of the borrower. Broader than ABS: includes private bilateral loans, warehouse facilities, forward-flow agreements, SRT structures, and publicly issued securities.

Forward Flow Agreement

A contractual commitment by a buyer to purchase specified assets from an originator at pre-agreed prices over a defined period, typically 12–36 months. Differs from a warehouse: the buyer purchases outright (no repo); originator retains no ongoing interest; price discovery is forward-looking.

Borrowing Base

The maximum loan amount a borrower may draw under a revolving credit facility, calculated as the sum of eligible collateral values multiplied by applicable advance rates. Distinct from a fixed loan: availability fluctuates as collateral values change; monthly BBC certification is standard.