Borrowing Base facilities

Borrowing base facilities provide the ideal flexibility for all companies with fluctuating working capital needs. This highly adaptable financing allows the credit limit to be raised or lowered in line with the company’s inventory and receivables.
  • Flexibility through monthly updates for your credit line
  • Continuity by tying the credit line to working capital
  • Stability through medium-term maturities

Secured liquidity and optimised financing structure

Your credit limit is designed to meet your working capital needs at all times

Your credit limit is updated monthly to cover seasonal peaks in liquidity demand

Medium-term maturities together with customised loan tranches

Bilaterally or with multiple banking partners – with your principal bank or as a club deal

An ideal source of funding for organic and inorganic growth

This credit facility also recognises the working capital needs of your locations abroad – and is at hand to finance them

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.

A well-structured process with a clear goal

Step 1

Your borrowing base is determined together with the terms and conditions as a part of audit at the company´s headquarters

Step 2

The loan and collateral agreements are prepared and all parties involved are consulted (borrowers/banks)

Step 3

You provide us with an update – usually monthly – of your borrowing base using an individual calculation scheme

Step 4

Your status update is assessed and a credit limit is determined and made available to you within the agreed range

A flexible credit line

Working capital – a reliable yardstick

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.