// definition
Borrowing base
Contractual collateral-based borrowing capacity
Short definition
The asset base used to calculate how much can be drawn under a secured credit facility. The agreement sets eligible assets, valuation rules and applicable haircuts or advance rates. A decline in the borrowing base can reduce funding capacity before insolvency.
risk atlas
Knowledge map
Related analyses
- Private credit’s test of patienceFund financing capacity and collateral behind bank facilities.
Primary sources
- Ares Capital, June 30, 2026 financial resultsFacility availability remains subject to borrowing-base and other restrictions.
- Ares Capital, June 30, 2026 Form 10-QNote 5, pages 186–190: advance rates, asset categories and facility restrictions.