Borrowing Base Certificate

A Borrowing Base Certificate is a legal template used in financial transactions under the jurisdiction of USA law. This document serves as a means for lenders to assess the collateral securing a loan and determine the amount of funds that can be borrowed by the borrower. The certificate typically includes detailed information about the borrower's assets, such as accounts receivable, inventory, equipment, and other eligible collateral. It provides a snapshot of the borrower's financial position at a given time, outlining the value of the collateral and any restrictions on the borrowing capacity. Lenders may require the borrower to submit periodic Borrowing Base Certificates to ensure the collateral remains sufficient and the loan remains adequately secured. This template is widely used in commercial lending, asset-based financing, and other debt arrangements to safeguard both the lender's interests and the borrower's ability to access financing.