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Your "Available Balance" explained
Your "Available Balance" explained

Understanding the "available" amount and how it is calculated

Christina avatar
Written by Christina
Updated over 3 months ago

At Defacto, an eligible borrower has access to a loan facility. This is an arrangement where a customer can borrow money up to a particular amount if and when they need it, which can be accessed by applying for loans.

This loan facility changes as you use Defacto. The amount available at any given time can be seen in the "Available balance" box. But what is taken into account in this calculation?

What is the "available balance"?

This is the maximum remaining amount of money you can apply for via Defacto.

💡 Each loan request is assessed by our algorithm (and our team if necessary). The balance available is indicative, and a request may be refused for compliance or solvency reasons.

How is the "available balance" calculated?

This is the total loan facility minus the total amount outstanding and the amount in the process of being validated.

For example, in the following situation:

  • Loan facility: €100,000

  • Total outstanding: €26,250

  • 1 loan request pending validation: €5,000

  • 1 loan request pending validation: €750

My "available balance" is 100,000 - 26,250 - 5,000 - 750 = €67,750

If my requests change:

  • the request for €5,000 is refused

  • the request for €750 is accepted

The situation will be as follows:

  • Financing capacity: €100,000

  • Total amount outstanding: €27,000

  • Available balance: €73,000

💡The available balance includes all your Defacto loans, including those that you have requested via our partners.

If you make the calculation above and the result does not tally, it means that another Defacto loan is open via one of our partners.

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