Eligible Receivables
Eligible receivables are the accounts receivable a lender will actually lend against, after ineligible items are removed. They are the qualifying pool, invoices that meet the facility criteria for age, debtor, concentration, and quality, to which the advance rate is applied to determine availability.
What makes a receivable eligible
A lender advances against the invoices that meet the facility criteria, not every invoice on the ledger. Eligible receivables are what remain after the ineligible items are stripped out, and they are the base to which the advance rate is applied.
Common criteria
Within the aging window (often 90 days), owed by an approved creditworthy debtor, free of disputes and offsets, not from an affiliate, in an accepted currency, and within the debtor concentration limit.
Why it matters
Eligible receivables are the foundation of the borrowing base: availability is the eligible pool times the advance rate, less reserves. Zolvo keeps eligibility and aging current through portfolio monitoring, see asset-based lending.