medium · Private Credit & Debt loan-structures-instruments
A lender provides an ABL facility with an 85% advance rate on 'Eligible Receivables'. Total Receivables are $50,000,000. Ineligible items include: $5,000,000 over 90 days, $2,000,000 related-party, and $1,000,000 foreign.
What is the maximum 'Borrowing Base'?
- $35,700,000
- $50,000,000
- $38,250,000
- $42,500,000
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