Borrowing base and availability
What the revolver will actually lend this week.
By Surojit Chakraverti, founder of L3VLUP and an investor running a long-short healthcare and technology equities strategy.
On this subject: borrowing base and availability.Updated 30 September 2026
What it does
An asset-based revolver lends against collateral, not against a commitment. The borrowing base is an advance rate on eligible receivables plus an advance rate on inventory, capped at the commitment; availability is the base less what is drawn. As receivables age or shrink the base falls, and if it falls below the drawn balance the company must repay the difference whatever its cash position.
Where it lives
The same schedule in each model that carries it, with the rows to open. Open a model in the browser, go to the sheet, and click the lines.
- Assumptions, rows 33–38: Revolver commitment, Advance rate on eligible receivables, Receivables eligible (inside 90 days, not disputed), Advance rate on inventory…
- Liquidity, rows 13–17: Advance on eligible receivables, Advance on inventory, Borrowing base, capped at the commitment, Revolver drawn, opening…
What a reviewer looks for
- Availability read as the commitment.
- Ineligible receivables counted.
- The forced repayment omitted when the base shrinks.
Learn it, then build it
Vocabulary: Borrowing Base, Revolving Credit Facility (Revolver).