Borrowing Base

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Dictionary Says

Definition of 'Borrowing Base'

The amount of money a lender will loan to a company based on the value of the collateral the company pledges. The borrowing base is usually determined by a method called margining, where the lender determines a discount factor that is multiplied by the value of the collateral; the result is the amount that will be loaned to the company.
Investopedia Says

Investopedia explains 'Borrowing Base'

For example, if company X goes to a lender to borrow money, the lender will assess the company's strengths and weaknesses and evaluate the lender's risk. Based on the risk the lending company feels is associated with lending money to company X, a discount factor is determined, say 85%. If company X is offering collateral that is worth $100,000, the amount the lending company will give the company is equal to 85% of $100,000, or $85,000.   
Search results for

'Borrowing Base'

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    ... Borrowing Base GMX Resources negotiated with its lenders during 2010 and reaffirmed
    the company's borrowing base of $130 million along with an extension of the ...

  • Student Borrowing: University Payment Plans Vs. Federal Student ...

    http://www.investopedia.com/articles/younginvestors/11/university-payment-plans-vs-student-loans.asp
    ... payment plans. Base your borrowing on future income. Borrowing for ... To Borrow?);
    Base second-year borrowing on first-year spending. Don't ...

  • PDC Energy Sets Up For 2012

    http://stocks.investopedia.com/stock-analysis/2011/PDC-Energy-Sets-Up-For-2012-PETD-CRZO-CHK-NBL1021.aspx
    ... and 2012. The company recently secured an increase in its borrowing base
    from $350 million to $400 million. Petroleum Development ...

  • Micro Cap Energy: High Risk, But High Return

    http://stocks.investopedia.com/stock-analysis/2009/Micro-Cap-Energy-High-Risk-But-High-Return-NOG-KOG-REXX0519.aspx
    ... this area in 2009. Rex Energy recently had its borrowing base of $80 million
    reaffirmed by its lenders. This means that the banks ...

  • Five Big Bulls To Know For Friday June 6

    http://stocks.investopedia.com/stock-analysis/2008/Five_Big_Bulls_To_Know_For_Friday_June_6_GDP.aspx
    ... long time. The company has a new borrowing base of $175 million, with only
    $34 million outstanding as of March 31. It did experience ...

  • When Wholesale Funding Goes Bad

    http://www.investopedia.com/articles/economics/09/when-wholesale-funding-goes-bad.asp
    ... Commercial finance companies don't have the depositor base from which to draw. ... problems
    when sources of wholesale funding dry up, or the borrowing terms may ...

  • Series 7 Study Guide - Portfolio Management - Municipal Bond ...

    http://www.investopedia.com/exam-guide/series-7/portfolio-management/muni-bond-analysis.asp
    ... To assess local debt properly, all borrowing supported by the same tax base must
    be included. Lease obligations must likewise be considered. ...

  • Flipping Houses: Is It Better Than Buy and Hold?

    http://www.investopedia.com/articles/mortgages-real-estate/08/flipping-flip-properties.asp
    ... The equity created in a real estate investment provides an excellent base for financing
    other investment opportunities. Instead of borrowing to get the capital ...

  • Retirement Funds To Fund Startups

    http://www.investopedia.com/articles/retirement/09/small-business-startup-retirement.asp
    ... a profit, so you'll need some money to get things running and keep them running
    until you can secure a consistent base of customers. ... For more on borrowing 401(k ...

  • Starting A Small Business In Tough Economic Times

    http://www.investopedia.com/articles/pf/09/start-business-in-depressed-economy.asp
    ... (For more insight on borrowing, read The Best Way To ... Slice and dice your original
    customer base to come up with smaller segments to market more strategically. ...

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