Available Funds

DEFINITION of 'Available Funds'

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.

BREAKING DOWN 'Available Funds'

Available funds may also refer to funds that can be withdrawn from a margin account at a brokerage firm, where margin loans are still outstanding.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.

RELATED TERMS
  1. Available Balance

    Balances in checking or on-demand accounts where there is a delay ...
  2. Overdraft

    An extension of credit from a lending institution when an account ...
  3. Margin Loan Availability

    1. The dollar amount in an existing margin account that is currently ...
  4. Cleared Funds

    A balance in an account that is able to be withdrawn or used ...
  5. Available Credit

    The unused portion of an open line of credit, such as a credit ...
  6. Temporary New Account

    An account that is set up within a fund to hold a balance as ...
Related Articles
  1. Markets

    Overdrafting

    An overdraft occurs when money is withdrawn from a bank account in an amount that exceeds the funds available in the account. Banks often permit this as a form of short-term loan to the account ...
  2. Personal Finance

    What's The Difference Between Overdraft And Cash Credit?

    Overdraft and cash credit are forms of borrowing. With both, the lending institution lets the borrower withdraw funds she has no claim to, usually in small amounts.
  3. Managing Wealth

    Mutual Funds: Different Types Of Funds

    No matter what type of investor you are, there is bound to be a mutual fund that fits your style. According to the last count there are more than 10,000 mutual funds in North America! That means ...
  4. Investing

    What Sources Of Funding Are Available To Companies?

    Despite all the differences that exist between companies, there are only a few sources of funds that are available to all firms.
  5. Investing

    Advising FAs: Explaining Mutual Funds to a Client

    More than 80 million people, or half of the households in America, invest in mutual funds. No matter what type of investor you are, there is bound to be a mutual fund that fits your style.
  6. Personal Finance

    4 Ways to Ditch Bank Overdraft Fees

    At $35 a pop, overdraft fees can mount up quickly. Here are 4 different strategies for avoiding them.
  7. ETFs & Mutual Funds

    5 Characteristics of Strong Mutual Fund Shares

    Discover some of the basic characteristics shared by good mutual funds that investors can use to help them in selecting funds.
  8. Retirement

    The Best Way To Borrow

    There are many avenues from which to drum up funding. Find out the pros and cons of each.
  9. ETFs & Mutual Funds

    Mutual Funds: Does Size Really Matter?

    The growth of mutual funds isn't always cause for celebration. Read on to find out why.
  10. ETFs & Mutual Funds

    Savings Accounts Not Always The Best Place For Cash Assets

    Money market funds may be all that stands between you and increasing your wealth.
RELATED FAQS
  1. What is the difference between overdraft and cash credit?

    Learn about the uses of the terms ''overdraft'' and ''cash credit,'' and how they represent different financial arrangements ... Read Answer >>
  2. What’s the difference between overdraft protection and overdraft settings?

    Learn what overdraft settings are, how they impact your relationship with your bank and how they govern the overdraft protections ... Read Answer >>
  3. How do you calculate payback period using Excel?

    Understand the various fees that can be assessed on a personal or business checking account, and learn methods to avoid being ... Read Answer >>
  4. What are the pros and cons of overdraft protection?

    If you sign up for overdraft protection and link your checking account to your savings account, a credit card or an overdraft ... Read Answer >>
  5. What are some examples of overdraft protection?

    Establish overdraft protection plans to ensure that your bills are paid on time. Use overdraft protection carefully to avoid ... Read Answer >>
  6. What's a better way to borrow money: overdraft or credit cards?

    Overdraft and credit cards will allow you to spend more money than you have, but whichever option you choose, be sure to ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center