Receivables availability meaning

What is a borrowing base facility? Borrowing base facilities (‘BB Facilities’) are a form of trade finance. They are working capital arrangements that provide short-term liquidity either through advances or by issuing trade instruments, such as letters of credit (see: Letters of credit—overview) or on demand guarantees (see: On demand guarantees/bonds—overview). These facilities are fully secured against current assets—commonly trading receivables, inventory (i.e. goods in storage or in transit), cash and contractual rights—of the borrower and/or other security providers. Consequently, the borrower’s available capital at any given time is directly linked to the value of the assets securing the lender(s). BB Facilities are typically offered to trading companies on a revolving basis to fund the purchase, storage, transport and sale of prescribed commodities. They are often used to finance a pool of traded assets subject to high price volatility. Reflecting this, a standard borrowing base facility agreement will include provisions focused on those assets and their valuation. A typical BB Facility has a tenor of 1–2 years, although...

This Assignment is dated [ insert day and month ] 20[ insert year ] Parties [ Insert name of Assignor ], a company incorporated in England and Wales with registered number [ insert company number ], whose registered office is at [ insert address ] (the Assignor); and [ insert name of Security Agent ] of [ insert address ], acting as security agent and trustee for the Finance Parties on the terms and conditions set out in the [ [ Facilities Agreement ] OR [ Intercreditor Agreement ] OR [ Security Trust Deed ] ] (the Security Agent). Background The Finance Parties have agreed to make available the loan facilities subject to the terms and conditions contained in the Facilities Agreement (as defined below). A condition precedent to the availability of those loan facilities is that the Assignor enters into this Assignment for the purpose of providing security in favour of the Security Agent in respect of...