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Available funds may also refer to funds that can be withdrawn from a margin account at a brokerage firm, where margin loans are still outstanding.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

  1. Non-Sufficient Funds - NSF

    An acronym used in the banking industry to signify that there ...
  2. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
  3. Margin Call

    A broker's demand on an investor using margin to deposit additional ...
  4. Margin Account

    A brokerage account in which the broker lends the customer cash ...
  5. Brokerage Account

    An arrangement between an investor and a licensed brokerage firm ...
  6. Overdraft

    An extension of credit from a lending institution when an account ...
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