hard · Private Credit & Debt
An Asset-Backed Lender (ABL) establishes a borrowing base for a manufacturer with $30m in Accounts Receivable (AR) and $20m in Inventory. The AR includes $5m that is over 90 days past due. The Inventory includes $3m in obsolete raw materials.
If the advance rates are 85% for eligible AR and 50% for eligible Inventory, what is the maximum drawdown available?
- 35.50m
- 25.50m
- 32.25m
- 29.75m
Sign up free to see the explanation and track your rank →
More Private Credit & Debt practice
- What is the fund's TVPI (Total Value to Paid-In) multiple?
- If the current SOFR rate drops to 0.25%, what is the all-in interest rate the borrower mus
- What is the Dividend Coverage ratio?
- What is the blended interest rate paid by the borrower?
- What is its current Debt-to-Equity (Leverage) ratio?
- A borrower's credit agreement includes a 'Negative Pledge'.… — Is this allowed?
- A BDC (Business Development Company) is required to distribu… — What is the primary benefi
- An investor is reviewing a fund's performance and sees a DPI… — What does this suggest abo