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.

Eligible Receivables

Receivables that satisfy contractual eligibility criteria and can be included in the borrowing base. Ineligible receivables (delinquent, government obligors, concentrated, cross-border) are excluded.

Exclusion Event

A trigger that removes an asset or LP commitment from the borrowing base (e.g., delinquency, counterparty downgrade, investor failure to fund). Common in both ABL (receivables aging out) and fund finance (LP sovereign immunity).