This is the first in a series of three that provide an overview of Asset-Based Lending.\u00a0<\/span><\/i><\/p>\n Through asset-based lending, businesses can get access to much-needed working capital. The borrowing base certificate is the core concept of asset-based lending and the key processing challenge for lenders. Since each borrower is unique and the borrower provides a Borrowing Base Certificate, BBC allows the lender to determine the value of a company\u2019s collateral. This valuation and the lender\u2019s calculation support funding strategies and risk tolerance profiles from borrower to borrower.\u00a0<\/span><\/p>\n Determining the borrowing base availability is not for the faint of heart. It involves assessing multiple sources of collateral, discounting numerous factors that can affect the eligibility of the collateral, and then applying the lender\u2019s funding rates and fees. What adds to the difficulty is deciphering the documents sent by the borrower, which are often sent in various formats and where the borrower is running their own calculations.<\/span><\/p>\n While this all can seem daunting, using software can take the pain out of the process- tedious calculations, data entry, and potential human error \u2013 and streamline the BBC process for both the lender and the borrower.\u00a0<\/span><\/p>\n