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.

Concentration Limit

A cap on the proportion of the borrowing base attributable to a single obligor, industry sector, or asset type. Prevents a single default from causing a disproportionate availability reduction; typically 10–25% per obligor.

Cash Dominion

A mechanism where all collection account receipts are swept daily to pay down the outstanding revolving balance. Hard (full) cash dominion applies from day one; springing cash dominion activates when excess availability falls below a threshold (typically 10–25% of facility size).