Automated Borrowing Base Calculation

Overview

A borrowing base is the amount of money a company can borrow from a lender.

Specialty finance companies that rely on asset-based borrowing need to calculate and report on their borrowing base on a regular basis to maintain access to their debt line. Lenders calculate the borrowing base amount by adding up all the assets that a borrower can put up as collateral (cash, inventory, and accounts receivable, for instance) and then “margining”, or applying a discount factor, to arrive at a maximum loan amount.

Finley automatically ingests data from loan tapes, validates or verifies that data, and then calculates borrowing base amounts that are used for the Funding Request workflow and for Finley's Insights feature.