How the base is calculated Live
Inventory availability
Inventory at cost
$24,800,000
Less near expiry and slow moving (excluded)
($1,420,000)
Less obsolete
($380,000)
Eligible inventory
$23,000,000
Advance rate
50%
Inventory availability
$11,500,000
Accounts receivable availability
Accounts receivable
$4,200,000
Less over 90 days
($310,000)
Less ineligible
($90,000)
Eligible AR
$3,800,000
Advance rate
85%
AR availability
$3,230,000
Gross eligible base (inventory plus AR before advance rates)
$18,400,000
Total borrowing base (advanced)
$14,730,000
Drawn vs base
55%
The headline $18.4M is the gross eligible base and $14.7M is the amount advanced after lender advance rates. Available credit of $13.9M reflects the base net of the current $0.8M draw. This certificate is generated from live inventory and AR, in the format an asset based lender expects, and refreshes every morning.
MN