Parameters

The Additional Borrow Capacity Calculations makes use of the following parameters:

Tolerance Percentage: The Tolerance Percentage refers to the maximum percentage change in the Shock Factors score, set according to a curve where lower Credit Scores output lower Tolerance Percentages. Borrowers with higher Credit Scores justify higher Tolerance Percentages as their overall creditworthiness remains relatively strong in the event of a shock.

Discount Tier: A discount is applied to the Tolerance Percentage defined above by the level of Borrower Current Assets available to service Debt.

Available Current Assets Ratio is calculated as follows:

Available Current Assets Ratio = (Current Assets - (Trading Margin + Collateral)) / Borrower Unsecured Liabilities The appropriate Discount Tier is determined by the following table:

Tier	Discount	Description
1	0% Discount	>70% of Current assets available to service Debt
2	20% Discount	30% - 70% of Current Assets available to service Debt
3	40% Discount	<30% of Current Assets available to service Debt

Adjusted Tolerance Percentage: The Adjusted Tolerance Percentage is defined as the Tolerance Percentage * (1 - Discount Tier)