Definition (1):
Credit availability can be a type of risk referring to the possibility that lenders may not have the funds to a loan or is willing to accommodate every qualified borrower when credit is requested.
Definition (2):
It refers to, at any specific time, the amount by which the maximum credit amount at that time exceeds the credit obligations at that time.
Definition (3):
“Credit Availability means, as of any time the same is to be determined, the amount (if any) by which (a) the lesser of (1) the Available Amount as then determined and computed in accordance with this Agreement, and (2) the Commitments as then in effect, exceeds (b) the aggregate principal amount of Loans and L/C Obligations then outstanding.”
It means, at the relevant reference time, the monetary amount equal to the lesser of (1) the borrowing base and (2) the commitment, less, in every case, the total of the accumulated outstanding principal amount of all revolving advances.
In plain language, credit availability is the credit amount to which a borrower can access at a specific time. Lines of credit and credit card accounts have a maximum money amount that one can borrow; credit availability indicates the amount that remains after subtracting balance, outstanding.