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Asset-based lending depends on the accurate and timely evaluation of a borrower’s collateral — typically accounts receivable, inventory, or other business assets. But traditional borrowing base management is often rigid, manual, and inefficient, limiting lenders’ ability to offer tailored structures or respond quickly to risk. With the rise of AI-powered lending platforms, asset-based lenders can now configure fully automated, bespoke borrowing bases at the individual loan level. This transformation makes it possible to balance customization, speed, and risk control in ways that were previously too operationally intensive to scale. In this blog, we examine a few crucial ways that AI can transform borrowing base management. Plus, we explore some of the borrowing base features that make AXIS by AIO Logic the most advanced ABL platform ever brought to market!

The Limitations of Traditional Borrowing Base Management

Borrowing bases have long been calculated using spreadsheets or legacy software, which makes it difficult to adapt rules for specific loans without manual effort. Eligibility criteria like advance rates, ineligibles, concentration limits, and asset classes are often standardized across borrowers because customizations are too complex to manage manually. For lenders serving a diverse set of clients across industries, this creates a tradeoff: either simplify the offering to reduce operational complexity, or build manual workarounds that don’t scale and increase the chance of errors. The result is slower decision-making, inconsistent risk management, and higher servicing costs.

How AI Can Transform Borrowing Base Management

Through the implementation of AI platforms, such as AXIS by AIO Logic, lenders can completely transform the borrowing base management process. Below are just a few of the many ways that asset-based lenders can utilize AI to automate bespoke borrowing bases at the individual loan level.

1. Fully Configurable Logic

AI platforms remove constraints by enabling fully configurable borrowing base logic that can be customized per loan and automatically applied in real time. Lenders can set different advance rates, exclusions, or eligibility rules based on borrower characteristics, and the system applies those rules continuously without manual intervention. Whether it’s setting a higher cap on receivables or excluding certain inventory types from eligibility for a retail borrower, AI makes it possible to offer borrower-specific structures without increasing servicing workload. This customization enhances competitiveness while preserving control.

As part of the unmatched functionality of our ABL module, AXIS by AIO Logic is the only platform that allows users to configure fully automated bespoke borrowing bases by loan. As part of this functionality, users can add as many asset segments as needed (e.g., different segments of AR, inventory, M&E, real estate, and user-defined asset classes). Once these asset segments have been added, users can then specify a limit for each asset segment. Additionally, users can specify advance rates for each asset segment, including automated seasonal and durational advance rates.

2. Automated Data Ingestion and Validation

One of the biggest enablers of automated borrowing base management is AI-powered data ingestion. Instead of relying on borrowers to email spreadsheets, systems can automatically pull financial data from accounting platforms or other data sources. AI validates and standardizes this data using machine learning and natural language processing, ensuring consistency and accuracy. Once the data is ingested, eligibility rules are instantly applied — calculating eligible collateral, identifying ineligibles, and flagging exceptions — without human input. This reduces processing time from days to minutes and gives lenders real-time insight into collateral health.

As a truly end-to-end platform, AXIS by AIO Logic allows data to flow seamlessly, which allows for more powerful data analysis throughout the entire loan lifecycle. However, none of that would be possible without AXIS’s superior data ingestion. AXIS’s AI enables automated ingestion, structuring, and centralization of unstructured source data such as financial statements, borrowing bases, and more. With the necessary data ingested, AXIS then automatically identifies and calculates ineligible assets based on user-set rules. Additionally, ineligible assets are automatically stratified by ineligible category.

3. Real-Time Monitoring and Alerts

Real-time monitoring is another major benefit. Traditional borrowing bases are calculated monthly or quarterly, creating blind spots between reporting periods. With AI, borrowing base calculations update automatically as new data becomes available, allowing for continuous monitoring of risk triggers. If a borrower’s customer concentration exceeds agreed-upon thresholds, or inventory turnover drops below a preset level, the system can flag the issue immediately and recalculate availability. These rules and alerts can be configured individually per loan, giving lenders proactive control without constant manual oversight.

In the fast-moving world of the modern economy, data can significantly lose its usefulness in just a short period of time. To help combat that, AXIS automatically calculates collateral values in real-time and aggregates data to track historical collateral levels and trends. Additionally, AXIS automatically calculates account debtor concentrations and borrower concentrations, while also automatically calculating and applying user-set concentration limits. All borrowing base calculations can be run as often as needed – daily, weekly, or monthly – depending on the loan terms.

4. Scalability and Portfolio Growth

As portfolios grow, manually managing bespoke borrowing bases becomes unsustainable — but AI makes it scalable. With configurable automation, lenders can manage hundreds of borrowers, each with custom eligibility rules, without increasing operational headcount. This allows them to take on more complex or niche borrowers that would have been too resource-intensive to service before. It also enables faster onboarding, as eligibility criteria and collateral structures can be rapidly configured and deployed. For lenders looking to grow their ABL books efficiently, AI unlocks a level of flexibility and scale that traditional systems can’t support.

Whether it’s specifically relating to the ABL module, through the robust features mentioned already, or more generally throughout the entire AXIS platform, we built AXIS with scalability in mind. With AXIS, organizations can add new functionalities and scale operations without migrating to new systems. As the organization grows or regulations change, our vertically-integrated solution can accommodate additional features, users, and data volume more easily.

5. Enhanced Compliance and Auditability

AI also brings discipline and transparency to the borrowing base process. Every calculation, override, and rule application is tracked, providing a clear audit trail for compliance, regulators, or warehouse lenders. This transparency increases trust in borrowing base accuracy, both internally and externally, and supports better governance. Lenders can also run automated borrowing base comparisons over time, making it easier to track trends, detect anomalies, and identify borrowers showing early signs of distress. This improves overall portfolio monitoring and supports faster, data-driven risk decisions.

The importance of effective compliance was certainly not forgotten when building AXIS by AIO Logic. In fact, AXIS’s AI can ensure that lending processes adhere to regulatory requirements by automatically checking for compliance issues and generating necessary reports. Plus, because AXIS is vertically integrated, security protocols and compliance measures can be applied uniformly across the organization. This simplifies regulatory audits and data privacy management, as data access and encryption policies can be applied from a centralized administration point.

Conclusion: The Future of Bespoke Lending Is Automated

By transforming the borrowing base from a manual process into a dynamic, automated engine, AI empowers lenders to deliver both high-touch borrower experiences and efficient portfolio management. They no longer have to choose between offering flexible deal structures and maintaining operational efficiency — they can have both. In an increasingly competitive lending environment, AI gives ABL providers the tools to respond faster, lend smarter, and scale with confidence. As technology continues to evolve, fully automated, bespoke borrowing bases will become a defining feature of modern asset-based lending. If your firm wants to be on the cutting edge of this exciting technology, please feel free to contact us today to schedule an intro call and learn about all that AXIS has to offer!