Description
Apply a supplied advance fraction and reserve to eligible collateral value.
Corporate finance calculations require consistent accounting periods, currencies, share bases and contract definitions. Restricted cash differs from available cash, a discount fraction depends on its denominator, and a debt or reserve balance is a bookkeeping relation. Supplied cash flows and rates describe scenarios rather than verified accounts or investment outcomes.
Apply a supplied advance fraction and reserve to eligible collateral value.
When to use this tool
Use Revolver Borrowing Base Reserve Term when you already have eligibleCollateralValue, advanceFraction, suppliedReserve and need to apply a supplied advance fraction and reserve to eligible collateral value.
How to use the tool and how it works
- Enter eligibleCollateralValue, advanceFraction, suppliedReserve. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read grossBase, netBase. Use the output convention below.
Require collateral/reserve>=0 and advanceFraction in [0,1]; gross=collateral*fraction, net=gross-reserve.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| eligibleCollateralValue | Eligible Collateral Value | Required. Finite number; minimum 0. |
| advanceFraction | Advance Fraction | Required. Finite number; minimum 0; maximum 1. |
| suppliedReserve | Supplied Reserve | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| grossBase | Gross Base | Required. Finite number. |
| netBase | Net Base | Required. Finite number. |
{
"input": {
"eligibleCollateralValue": 1000,
"advanceFraction": 0.8,
"suppliedReserve": 100
},
"output": {
"grossBase": 800,
"netBase": 700
}
}Limitations and assumptions
- A negative net base is retained. No asset eligibility, valuation, reserve, lender covenant or actual borrowing availability is verified.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Reconcile actual statements, financing agreements, cap tables and cash-flow forecasts. Use full contractual terms and appropriate valuation or accounting methods when a local balance, fraction or present-value term cannot answer the financial question.
References
Similar or alternative tools
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