LOC Qualifier

Know your borrowing base
before you apply

Lenders size a business line of credit on two things: your asset borrowing base and your cash flow. This qualifier models both sides simultaneously -- showing you the maximum line you can support from eligible assets, the maximum your DSCR allows, and where the two intersect. Walk in knowing your number before you sit down with a lender.

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Asset-based borrowing base — Enter your current assets (receivables, inventory, equipment) with lender advance rates per asset class. The calculator applies standard advance rates and shows your maximum asset-secured line.

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Cash flow qualification (DSCR) — Enter annual revenue, gross margin, operating expenses, and existing debt payments. The calculator computes your Debt Service Coverage Ratio and the maximum new debt service you can support.

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Blended qualification limit — Lenders use the lower of the borrowing base and the cash flow limit. The tool identifies your binding constraint and shows the gap between the two.

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Draw and repayment modeling — Set your expected draw percentage and repayment term. The calculator shows projected monthly interest cost, total annual carrying cost, and effective utilization rate.

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Credit score impact — Select your personal credit score band to see how it affects approval likelihood and expected rate range for your profile.

Borrowing BaseAdvance RatesDSCRCash Flow LimitDraw %Monthly InterestCredit ScoreQualification Limit

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Borrowing Base
Certificate

PreparedOctober 27, 2026

Requested Limit$200K

Rate / Term9.5% / 3 yr

Credit Score Band700–749

Years in Business4

Conditionally ApprovedBased on your borrowing base and cash flow, you may qualify for a line of credit up to the amount shown. Final terms subject to lender underwriting.

Recommended Limit$200K

#Asset / Collateral DescriptionBook ValueAdv. RateEligible Amount

Section A — Current Assets

A1 Cash & Equivalents$50K100%$50K

A2 Accounts Receivable (<90d)$120K80%$96K

A3 Aged A/R (90–180 days)—40%—

A4 Finished Goods Inventory$80K50%$40K

A5 Work-in-Process Inventory—25%—

A6 Prepaid Expenses—25%—

Section A Subtotal — Current Assets$250K$186K

Section B — Fixed / Long-Term Assets

B1 Equipment (FMV)$150K70%$105K

B2 Vehicles (NADA/KBB value)—70%—

B3 Commercial Real Estate—75%—

B4 Other Fixed Assets—50%—

Section B Subtotal — Fixed Assets$150K$105K

Total Borrowing Base (before credit score adjustment)$291K$291K

Credit Score Adjustment (700–749 — ×0.9)×0.9$262K

Asset-Based Maximum Line of Credit$262K

Section C — Cash Flow / DSCR Analysis

Annual Revenue$750K

Gross Profit (45%)$338K

Operating Expenses (35% of revenue)($263K)

Net Operating Income (NOI)$75K

Existing Annual Debt Service($36K)

Proposed LOC Debt Service (full limit, interest-only)($19K)

Total Annual Debt Service($55K)

DSCR (NOI ÷ Total Debt Service)1.36×

Minimum Required DSCR1.25×

DSCR-Based Max LOC (at 1.25× DSCR)$253K

Recommended Line (lower of asset-based & DSCR)$200K

Section D — Qualification Checklist

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Borrowing Base SufficientTotal eligible collateral: $291K — meets typical minimum threshold.

DSCR — Marginal1.36× meets the 1.25× minimum but is below the 1.5× preferred ratio. Lenders may add covenants.

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Credit Score — StrongScore in the 700+ range qualifies for standard advance rates and pricing.

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Time in Business4 years meets the standard 2-year minimum for unsecured and hybrid LOC products.

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A/R QualityAged A/R is 0% of total receivables — strong collection performance.

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Annual Revenue$750K in revenue meets typical lender minimums.

Know your borrowing basebefore you apply

Know your borrowing base
before you apply