Borrowing Base Insights
Last updated
Last updated
The Insights page provides a bird’s eye view of key components of your credit facility. It shows data on the borrowing base, eligibility, and concentration limits. These features can help you monitor your performance and maximize use of your credit facilities.
The borrowing base tab shows the performance of your assets against the terms outlined in your credit agreement. It can also help you monitor the quality of your collateral, maximize your effective advance rate, and optimize cost of capital. The boxes at the top summarize the KPIs of your borrowing base. Below are definitions of each of the KPIs provided on the page:
Total Exposure: The sum of all the receivables provided in the servicing tape.
Total Eligible Exposure: The receivables in the servicing tape that meet the requirements provided by your capital provider to serve as collateral. They do not include receivables with delinquencies or other items that the capital provider has flagged in the credit agreement.
Total Excess Concentration: The portion of receivables that exceeds the thresholds or concentration limits outlined in the credit agreement (note: ineligible receivables are removed from the Borrowing Base, while only portions of receivables with excess concentration are removed from the Borrowing Base)
Borrowing Base: The total amount of money that can be borrowed from the capital provider
Max Advance Amount: The maximum amount that can be borrowed from the capital provider
Facility Utilization: The portion of the loan that has already been drawn on
Total Cash Balance: The amount of cash the borrower has on its balance sheet
Effective Advance Rate: The max advance amount, expressed as a percentage of the total collateral
The borrowing base graphic displays your total borrowing base and maximum advance rate over the past several weeks. The asset effective advance rate shows the advance rate over the same period.
Total exposure is the sum of all the receivables provided in your servicing tape. Eligible exposure is the amount of these receivables that can actually service as collateral, and ineligible exposure is the difference.
The pie chart on the left side of the page shows the portion of receivables that are eligible. The chart on the right lists the reasons certain proportions of receivables are ineligible.
Concentration limits are criteria outlined in the credit agreement that the portfolio of receivables must satisfy. The boxes at the top of the page show the total number of limits that must be satisfied, the amount that are broken, and the dollar value of receivables that cannot serve as collateral because they break one of the concentration limits.
The excess concentration section lists the amount of receivables that are restricted as a result of each breached limit. The graph at the bottom of the page shows the historical performance of each concentration limit plotted against the threshold highlighted in red. Breached limits are highlighted in red in the x-axis at the top of the graph. This page can be used to easily identify where receivables are tied up and evaluate what can be done to avoid breaching the limits.
Hint: you may need to scroll to the right to see the full list of concentration limits.
