Does unbilled cost-in-excess count toward the borrowing base at term sheet?
At term sheet, unbilled cost-in-excess and Eligible Unbilled can count toward the borrowing base when the credit agreement so defines them. Yahoo lists seventy-five percent (75%) of Eligible Costs in Excess of Billings in the Borrowing Base; Justia Provant lists 60% Eligible Unbilled and 60% Costs in Excess. OCC lists Unbilled accounts receivable as commonly ineligible; the credit agreement governs.
Last updated: September 13, 2026
Credit agreements that list CIE and Eligible Unbilled inside Borrowing Base
Yahoo MidCap/SCCI credit agreement EX-10.6 lists Borrowing Base as the sum that includes eighty-five percent (85%) of Eligible Accounts plus seventy-five percent (75%) of Eligible Costs in Excess of Billings (plus Eligible Equipment). The same exhibit states that an Eligible Account fails when "(m) the Account is unbilled or has not been invoiced to the Account Debtor," and separately defines "Eligible Costs in Excess of Billings" as a positive cost difference where the receivable would otherwise be an Eligible Account but for being unbilled.
Justia Provant 17th Amendment lists Borrowing Base as 85% of Eligible Accounts Receivable (excluding Eligible Unbilled Receivables), plus 60% of Eligible Unbilled Receivables, plus 60% of Costs in Excess of Billings. It defines Eligible Unbilled Receivables as Eligible Receivables where Borrower has fully earned and recognized revenue but has not billed its customer, and Costs in Excess of Billings as the amount reported as Costs in excess of billings on the most recent consolidated balance sheet.
Other Justia term sheets: Horizon, Shaw, FiberCom
Justia Horizon Offshore lists Borrowing Base including sixty percent (60%) of Eligible Costs in Excess of Billings-Borrowers. Justia Shaw Group lists 50% of Costs in Excess of Billings and defines Costs in Excess of Billings as all costs and estimated earnings in excess of billings on uncompleted contracts. Justia FiberCom lists Borrowing Base including the product of the Costs in Excess of Billings Advance Rate and Eligible Costs in Excess of Billings, with Eligible Costs in Excess of Billings net of any billings in excess of costs.
OCC ineligible list vs ABL Advisor balance-sheet labels
The OCC Comptroller's Handbook on Asset-Based Lending lists "Unbilled accounts receivable" among "characteristics of receivables commonly designated as ineligible." ABL Advisor says "cost in excess of billings ('Under Billings,' an asset on the balance sheet) and billings in excess of cost ('Over Billings,' a liability on the balance sheet)" as a result of Percentage of Completion accounting — useful labels.
| Claim | Listed | URL |
|---|---|---|
| Yahoo Borrowing Base includes Eligible CIE @ 75% | seventy-five percent (75%) multiplied by (ii) the aggregate net amount at such time of the Eligible Costs in Excess of Billings | Yahoo MidCap/SCCI EX-10.6 |
| Yahoo Eligible Account fails when unbilled | (m) the Account is unbilled or has not been invoiced to the Account Debtor | Yahoo MidCap/SCCI EX-10.6 |
| Yahoo Eligible Costs in Excess of Billings defined | Eligible Costs in Excess of Billings means, on a customer-by-customer basis … an amount equal to the positive difference (if any) | Yahoo MidCap/SCCI EX-10.6 |
| Justia Provant Borrowing Base formula | 85% of the total amount of Eligible Accounts Receivable (excluding Eligible Unbilled Receivables), plus (ii) 60% of Eligible Unbilled Receivables, plus (iii) 60% of Costs in Excess of Billings | Justia Provant 17th Amendment |
| Justia Provant Eligible Unbilled Receivables | Eligible Unbilled Receivables. Eligible Receivables arising under contracts with account debtors as to which Borrower has fully earned and recognized revenue but has not billed its customer | Justia Provant 17th Amendment |
| Justia Horizon Eligible CIE advance | sixty percent (60%) of Eligible Costs in Excess of Billings-Borrowers | Justia Horizon Offshore |
| Justia Shaw Costs in Excess of Billings @ 50% | 50% of Costs in Excess of Billings; Costs in Excess of Billings means all costs and estimated earnings in excess of billings on uncompleted contracts | Justia Shaw Group |
| Justia FiberCom Eligible CIE × advance rate | the product of (x) the Costs in Excess of Billings Advance Rate and (y) Eligible Costs in Excess of Billings; Eligible Costs in Excess of Billings … net of any billings in excess of costs | Justia FiberCom |
| OCC Unbilled accounts receivable ineligible list | Unbilled accounts receivable. (under characteristics of receivables commonly designated as ineligible) | OCC ABL handbook PDF |
| ABL Advisor Under Billings / Over Billings labels | cost in excess of billings ("Under Billings," an asset on the balance sheet) and billings in excess of cost ("Over Billings," a liability on the balance sheet) | ABL Advisor construction blog |
Frequently asked questions
Does unbilled cost-in-excess count toward the borrowing base at term sheet?
Yes when the credit agreement defines Eligible Costs in Excess of Billings or Eligible Unbilled Receivables inside Borrowing Base. Yahoo MidCap/SCCI lists seventy-five percent (75%) of Eligible Costs in Excess of Billings in Borrowing Base; Justia Provant lists 60% Eligible Unbilled plus 60% Costs in Excess. OCC lists "Unbilled accounts receivable" among "receivables commonly designated as ineligible" — the credit agreement governs the carve.
What advance rates do filed credit agreements list for Eligible Costs in Excess of Billings?
Yahoo MidCap/SCCI lists seventy-five percent (75%) of Eligible Costs in Excess of Billings. Justia Provant lists 60% of Costs in Excess of Billings; Horizon Offshore lists sixty percent (60%) of Eligible Costs in Excess of Billings-Borrowers; Shaw Group lists 50% of Costs in Excess of Billings. FiberCom lists the product of a Costs in Excess of Billings Advance Rate and Eligible Costs in Excess of Billings. Those are deal-specific figures.
What is Eligible Unbilled Receivables versus Costs in Excess of Billings?
Justia Provant defines Eligible Unbilled Receivables as Eligible Receivables arising under contracts where Borrower has fully earned and recognized revenue but has not billed its customer. The same agreement lists Costs in Excess of Billings as the amount reported as Costs in excess of billings on the most recent consolidated balance sheet. Yahoo separately defines Eligible Costs in Excess of Billings for unbilled cost positive differences that would otherwise be Eligible Accounts but for being unbilled.
What does ABL Advisor list for Under Billings versus Over Billings?
ABL Advisor says "cost in excess of billings ('Under Billings,' an asset on the balance sheet) and billings in excess of cost ('Over Billings,' a liability on the balance sheet)." Those two items "are a result of Percentage of Completion accounting (POC)." That is a balance-sheet label.
Does OCC state that unbilled never counts toward borrowing base?
No. The OCC Comptroller's Handbook on Asset-Based Lending lists "Unbilled accounts receivable" among "receivables commonly designated as ineligible." Filed term sheets that list CIE/Unbilled in Borrowing Base remain the governing carve.
Related
- Before binding an ABL revolver, which AR lines are ineligible and which get carved back at term sheet?
- Do progress billings count toward the borrowing base before an ABL revolver binds?
- What is the difference between billings-in-excess liability and unbilled asset on a contractor balance sheet?
- Why is construction AR harder to finance than manufacturing AR at term sheet?
- What is a work-in-process schedule in an ABL borrowing-base certificate for construction contractors?
- Does cost-plus contract AR advance differently than fixed-price contract AR at term sheet?