A credit facility to match your working capital needs, Borrowing Base facilities
Benefits for you, Secured liquidity and optimised financing structure
Liquidity when you need it
Your credit limit is designed to meet your working capital needs at all times
Regular updates
Your credit limit is updated monthly to cover seasonal peaks in liquidity demand
Stability
Medium-term maturities together with customised loan tranches
Customised implementation
Bilaterally or with multiple banking partners – with your principal bank or as a club deal
Growth financing
An ideal source of funding for organic and inorganic growth
Cross-border benefits
This credit facility also recognises the working capital needs of your locations abroad – and is at hand to finance them
Full range of services at a glance, Commerzbank: your partner of choice for the implementation of borrowing base facilities
Commerzbank is one of the most experienced providers of borrowing base facilities, with a whole host of reference transactions to its credit. As a lead arranger, we also offer expert advice and help you structure and implement your borrowing base facilities.
Before teaming up with you to optimise your financing, we perform a detailed analysis of your working capital needs, factoring in your future requirements. At the core of this process is a potential analysis focusing on historical business numbers and your future forecast. Based on your data, we:
- explore the potential volume of a borrowing base,
- will determine the possible credit limit taking into account an appropriate headroom for fluctuations in working capital,
- derive the necessary steps to implement the facility.
Once you have received our quote, you can give Commerzbank the green light.
Setting up a borrowing base in 4 easy steps, A well-structured process with a clear goal
Borrowing base audit
Your borrowing base is determined together with the terms and conditions as a part of audit at the company´s headquarters
Preparing the contract
The loan and collateral agreements are prepared and all parties involved are consulted (borrowers/banks)
Borrowing base status update
You provide us with an update – usually monthly – of your borrowing base using an individual calculation scheme
Credit limit update
Your status update is assessed and a credit limit is determined and made available to you within the agreed range
Borrowing base facilities, A flexible credit line
Borrowing base facilities are special structures designed to finance working capital needs with current assets functioning as collateral.
A borrowing base audit is used to record the information required to create the credit agreement and collateral agreements. In addition, a customer-specific calculation scheme for the Borrowing base message is derived.
The extent to which the credit line can be used is defined by the borrowing base notification and updated every month. The credit line itself is determined by the maximum demand for working capital and is set according to requirements, allowing sufficient haedroom for fluctuations on the basis of the company's planned figures.