Borrowing Base Formula

Borrowing Base Formula. The lesser of the note amount of $7,500,000 or the formula used to calculate the amount of available credit for Borrower under the Loan. The available credit under the Borrowing Base Formula shall be calculated as follows: 85% of Eligible Accounts Receivable plus 50% of Unbilled Accounts Receivable up to $1,500,000, plus 40% of Eligible Inventory, less Borrower's obligations under outstanding Letters of Credit. The collateral and credit used to calculate the Borrowing Base Formula are described... in the Borrowing Base & Compliance Certificate which attached as Exhibit 1. View More