Economics
Advance rate
status: draft
The percentage of eligible collateral value a capital provider will fund. An 85% advance rate on a $100 million eligible pool gives you $85 million of debt capacity.
What to watch
Negotiate the formula, not just the headline percentage. Eligibility criteria, concentration caps, reserves, and haircuts can reduce real availability.
Referenced in 141 topics
ABF vs. traditional lending (when ABF makes sense, when it doesn't) foundations Administration agreement documentation Advance rates and the borrowing base mechanics Aircraft leases asset-classes Amendments and waivers lifecycle-events Approaching banks for warehouse capital playbooks Auto loans and leases asset-classes Back leverage (provider perspective) capital-sources Back leverage and fund financing playbooks Bank balance sheet capital-sources Bank regulatory considerations legal BNPL receivables asset-classes Borrowing base certificate operations-lifecycle Borrowing base mechanics mechanics Breaking into ABF playbooks Bridge / fix-and-flip asset-classes Building an ABF team playbooks Building an originator pipeline playbooks Building relationships while negotiating playbooks Building your ABF pitch playbooks Calculation agents and data agents counterparties Careers at originators playbooks Cash operations and waterfall execution operations-lifecycle CECL and accounting considerations accounting-valuation Cell tower and data center ABS (digital infrastructure) asset-classes Choosing the right structure playbooks CMBS (conduit, SASB, large loan) asset-classes Collateralized loan obligations (CLOs) structures Common mistakes and how to avoid them playbooks Common negotiation mistakes playbooks Conduit and ABCP programs structures Container leases asset-classes Covenant cures and waivers mechanics CRE CLOs asset-classes Credit card receivables asset-classes Credit funds and private capital capital-sources Data and analytics infrastructure operations-lifecycle Deal autopsy: why deals fail playbooks Deal structures asset-classes Deal timeline matrix appendix Distressed market playbook market-landscape Document coordination documentation Documentation negotiation playbooks DSCR investor loans asset-classes Due diligence question bank documentation Early-stage financing guide playbooks Economic terms negotiation playbooks Education and vocational receivables asset-classes Equipment leases and loans asset-classes EU/UK securitization regulations legal Evaluating portfolio quality and performance playbooks Family offices as ABF capital providers playbooks Financing progression roadmap playbooks Finding capital providers market-landscape Finding the right capital partner playbooks Forward flow agreements structures Funders and market participants asset-classes Healthcare receivables asset-classes Home equity and helocs asset-classes How ABF works (5-minute overview) foundations How to benchmark your deal against the market playbooks Infrastructure debt asset-classes Law firm finance asset-classes Legal counsel counterparties Managing multiple facilities playbooks Mark-to-model practices accounting-valuation Market data and public datasets market-landscape Market spreads guide market-landscape Marketplace lending and fintech-originated asset-classes Middle market CLOs asset-classes Multi-party negotiation dynamics playbooks Music royalties and content IP asset-classes NAV facilities and subscription lines structures Navigating the deal process playbooks Negotiation fundamentals playbooks Negotiation strategy playbooks Non-agency RMBS / non-QM / investor-purpose asset-classes Non-performing loans (NPL) asset-classes Non-QM lending asset-classes Ongoing portfolio management operations-lifecycle Ongoing portfolio management (capital provider) playbooks Ongoing reporting and surveillance operations-lifecycle Personal / unsecured consumer loans asset-classes Pharma royalties asset-classes Pool formation and onboarding operations-lifecycle Portfolio covenants mechanics Portfolio financing asset-classes Portfolio valuation accounting-valuation Powersports (RV, marine, motorcycle) asset-classes Premium finance asset-classes Preparing your data room playbooks Pricing and relative value accounting-valuation Pricing negotiation playbooks Prime jumbo asset-classes Protecting your position in distress playbooks Questions to ask your legal team playbooks Rail cars and rolling stock asset-classes Re-performing loans (RPL) asset-classes Reading the credit cycle market-landscape Recognizing distress early playbooks Revenue-based financing asset-classes Revolving, prefunding, and reinvestment mechanics Sample term sheet (annotated) appendix Sample waterfall appendix Servicer responsibilities counterparties Servicing fees and economics counterparties Shipping and maritime finance asset-classes Single-family rental (SFR) asset-classes Small business loans (including SBA 7(a)) asset-classes Solar / renewable energy (PACE, PPA, solar loan) asset-classes Sourcing ABF deals playbooks Stratification analysis accounting-valuation Structural terms negotiation playbooks Student loans (federal and private) asset-classes Subscription finance / capital call lines structures Tax considerations for ABF structures legal Tax liens asset-classes Term securitization (ABS/MBS) structures Term sheet anatomy documentation The ABF ecosystem (players, roles, and how they interact) foundations The economics of ABF for originators (worked examples) playbooks Timeshare receivables asset-classes Top capital provider mistakes playbooks Top deal process mistakes playbooks Top originator mistakes playbooks Trade receivables and supply chain finance asset-classes Transaction agreements documentation Transitioning between capital providers playbooks Treasury management for multi-facility originators playbooks True sale and perfection legal Understanding ABF LPs playbooks Understanding deal fees playbooks Waiver, amendment, or acceleration playbooks Warehouse facilities structures What capital providers care about playbooks What is negotiable by structure type playbooks Whole business securitization asset-classes Whole loan sales structures Working with credit funds playbooks Workouts, restructuring, and enforcement lifecycle-events Your loan tape: what lenders actually look at playbooks