Available Funds

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DEFINITION

Funds that are available to an account holder for withdrawal or other use. This may include funds from an overdraft facility or line of credit, as well as funds classified as the available balance, such as from cleared and existing deposits.

INVESTOPEDIA EXPLAINS

Available funds may also refer to funds that can be withdrawn from a margin account at a brokerage firm, where margin loans are still outstanding. They can also include the amount that a person can raise on short notice for a specific purpose from, for example, unused credit lines, loans from banks or relatives, or assets that can be liquidated quickly. This amount could include funds from different sources, to determine an individual's or a company's immediate liquidity.


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