Calculator
Borrowing base of an ABL facility
The calculator sets the borrowing base of an asset-based lending facility from receivables, inventory and reserves. It ranks the items that reduce the base by their cost.
Availability
€13.75m
| Item | Amount |
|---|---|
| Eligible receivables | €33.00m |
| Advance on receivables | €28.05m |
| Advance on inventory | €12.20m |
| Borrowing base | €38.75m |
| Item | Amount |
|---|---|
| Receivables over 90 days past due | €2.55m |
| Concentration excess on the largest customer | €2.55m |
| Lender reserves | €1.50m |
| Credit notes and disputes | €0.85m |
The initial values are sample inputs to replace with your ledger balances and the terms of your facility. This calculation gives an order of magnitude and commits no lender.
Method
The calculation formulas
The concentration cap applies to eligible receivables. Receivables on the largest customer above this cap leave the base. An ineligible item costs its amount multiplied by the advance rate on receivables.
Eligible receivables
Eligible receivables = total receivables − receivables over 90 days past due − credit notes and disputes − concentration excess
Borrowing base
Borrowing base = eligible receivables × advance rate + inventory × advance rate by category − reserves
Availability
Availability = lower of the borrowing base and the facility limit − outstanding drawings
Example
Worked example
A company holds €40.00m of trade receivables. Receivables over 90 days past due, credit notes and disputes remove €4.00m. The largest customer exceeds the concentration cap by €3.00m. Eligible receivables come to €33.00m. The advance rate of 85% gives €28.05m. Inventory adds €12.20m. After €1.50m of reserves, the borrowing base reaches €38.75m. Availability comes to €13.75m after €25.00m of drawings. The figures of this example are sample inputs.
Benchmarks
Factoring in France in 2025
| Activity | Receivables purchased | Annual change |
|---|---|---|
| Domestic factoring | €270,285m | 0.0% |
| International factoring | €169,145m | +5.0% |
| Total | €439,430m | +1.9% |
Outstanding receivables to be collected at 31 December 2025: €66,070m.
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