medium · Private Equity advanced-lbo
Asset-based lending (ABL) availability for a distributor is determined by a borrowing base. The company has total receivables of 30M (5M of which are over 90 days past due) and total inventory of 20M (3M of which is obsolete).
If advance rates are 85% for eligible receivables and 50% for eligible inventory, what is the borrowing base?
- $31.25M
- $25.50M
- $35.50M
- $29.75M
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