Borrowing Base

The maximum amount a lender will advance against a pool of eligible collateral (receivables, inventory, or loan assets), recalculated periodically as the underlying collateral changes.

Common in asset-based lending and structured credit facilities. A borrowing base certificate typically has to be delivered on a set schedule, and a shortfall (the outstanding balance exceeding the current borrowing base) is itself a covenant event separate from a DSCR or leverage breach.