Availability

The amount currently available to be advanced after limits, reserves, and ineligible receivables.

Why it matters

Availability is the real-time funding capacity under a factoring program after accounting for outstanding advances, ineligible receivables, and any holds. A seller with a 500,000 credit facility who has 400,000 in outstanding funded invoices and 50,000 in ineligible receivables has only 50,000 in current availability. Understanding availability allows sellers to plan submission timing and anticipate when the facility will limit new funding. Availability can change daily as customers pay and new invoices are submitted.

How it appears in contracts

Factoring agreements define availability in the Availability or Advance Amount section. The formula typically starts with the facility limit, subtracts outstanding advances, and applies eligibility adjustments to determine what can be funded at any given time. Some agreements define availability as a formula applied to eligible receivables rather than a fixed facility. Sellers should request a current availability statement from the factor portal before submitting large batches of invoices to confirm sufficient capacity exists to fund the submission.

Related terms

Related article: How invoice factoring works

Related reading

Sources

  • International Factoring Association - International Factoring Association. Accessed 2026-05-19. Industry association source for factoring terminology and industry context.
  • Secured Finance Network - Secured Finance Network. Accessed 2026-05-19. Industry education source for secured finance and asset-based lending context.
Financial disclaimer. This page is educational only and is not financial, legal, tax, accounting, or credit advice. Factoring terms vary by provider and contract. Read the full disclaimer.