How a borrowing base is calculated.

I’m Dennis Henry, Senior Collateral Examiner at National Collateral Examiners. One of my key goals for 2025 is to develop a comprehensive set of industry tools to support lenders, borrowers, and the asset-based lending sector as a whole.

To kick things off, I’m excited to focus on borrowing base certificate calculations—an area often misunderstood in asset-based lending. As this page evolves, I will introduce an Excel worksheet, available for download, designed to enhance accuracy and efficiency in this process.

This resource will feature an extensive list of over 75 Accounts Receivable and more than 100 Inventory ineligible categories. The list will begin with the most commonly defined exclusions and expand to include product-, service-, and industry-specific types found across both horizontal and vertical markets.

Stay tuned for updates! If you or someone you know is interested in contributing to this tool or others, feel free to reach out. Thanks for stopping by!