Borrowing Base and Advance Rate Calculator
This free calculator computes availability on a receivables line. Enter gross accounts receivable, ineligible receivables, the advance rate, and the current outstanding balance, and it returns eligible receivables, the borrowing base, the lender cushion, and remaining availability.
How the borrowing base is calculated
A receivables borrowing base starts with gross AR, subtracts ineligible receivables to get the eligible pool, then applies the advance rate. The advance rate is applied after ineligibles are removed, not to the gross ledger. The difference between the eligible pool and the availability is the lender cushion, and borrowers report the result on a borrowing base certificate.
What counts as ineligible
Common ineligibles include invoices aged past their eligibility window, cross-aged accounts, foreign or affiliate balances, contra accounts, and amounts above a debtor concentration limit. They are excluded because they carry higher collection or dilution risk.
Keeping it current
The borrowing base moves every time receivables and cash do. Zolvo keeps eligibility, aging, and dilution current through portfolio monitoring, so availability reflects real collateral rather than a stale snapshot, see how it applies to asset-based lending.
Frequently asked questions
What is a borrowing base?
A borrowing base is the amount a lender will lend against collateral at a point in time. For a receivables line it is gross AR less ineligibles, times the advance rate, less anything already outstanding.
How is the advance rate applied?
After ineligibles are removed. Start with gross AR, subtract ineligible receivables to get the eligible pool, then multiply by the advance rate. The gap between the eligible pool and the availability is the lender cushion.
What counts as an ineligible receivable?
Invoices aged past the eligibility window, cross-aged accounts, foreign or affiliate balances, contra accounts, and concentration excess, because they carry higher collection or dilution risk.
How do lenders keep the borrowing base current?
The base moves with receivables and cash, but is often only recomputed at certificate submission. Continuous reconciliation and monitoring keep eligibility, aging, and dilution current so availability reflects real collateral.