In This Section
Borrowing Base Certificate 
The borrowing base certificate is a document the borrower creates to reflect the status of their collateral and loan at a certain point in time.
Borrowing Base
The borrowing base is the amount of money a lender will loan to a company based on the value of the collateral the company pledges to secure its loan.
Borrower Quality Rating
A borrower quality rating (BQR) is a number assigned to a borrower based on that borrower’s perceived credit riskiness.
Boot Collateral
"Boot collateral" refers to collateral in a transaction where the secured creditor/lender has a security interest, but is not specifically advancing against this collateral.
Bookrunner
The bookrunner is the main underwriter on a syndicated deal.
Blocked Account Control Agreement
A blocked account control agreement is used by lenders to perfect their security interest in the cash collateral account of their borrower and it provides the lender with the ability to direct the bank how to disburse the funds if lender exercises their rights.
Blanket lien
A lender's lien against everything that a borrower owns, not just the asset bought with the loan.
Bill of Lading (non-negotiable)
A non-negotiable bill of lading sets out a specific consignee to whom the goods are to be shipped, and does not itself represent ownership of the goods.
Bill of Lading (negotiable)
A negotiable bill of lading instructs the carrier to deliver goods to anyone in possession of the original endorsed negotiable bill, which itself represents title to and control of the goods.
Bill & Hold
A bill & hold is a type of sales arrangement in which the buyer purchases goods but the seller maintains physical possession until a later ship date.
Base Case
Base case is a term used in financial modeling that describes the model that uses the assumptions that are most likely to occur. It is the expected scenario.
Bankruptcy Code
The Bankruptcy Code of the United States outlines the process by which a Company reorganizes debts or enters into a repayment plan with creditors.
Bank Products
Bank Products are an array of treasury management, hedging or other bank services offered by a bank to a borrower, either in conjunction with a larger credit facility or on a standalone basis.
Balloon Payment
A balloon payment is the payment required of a borrower at the maturity of a credit facility.
Bailee Waiver
A Bailee waiver grants a collateral agent, or lender in the case of ABL Lending, access to the assets for which the Bailee is responsible.
Bailee
A bailee is an individual or party to a transaction that takes temporary possession of an asset without taking legal ownership of that asset.
Avoidance Action
Avoidance Action, in the context of a bankruptcy proceeding is the process in which a trustee can reclaim funds paid by the bankrupt company prior to filing for bankruptcy.
Average Unit Cost
Average unit cost is the value derived by taking the number of units produced or purchased divided by the amount it took to produce or purchase those units.
Availability Block
An availability block is placed within a revolving credit facility that prohibits a borrower from utilizing all of the availability generated by their borrowing base.
Availability
Availability is the amount a borrower may borrow under the terms of the credit agreement at a given time.