Balances: Availability v Liability

This article goes through the key differences of availability and liability, as well as where to find the reports in the portal.


Availability refers to the funds immediately accessible to your business through invoice finance, determined as a percentage of the total invoice value, ranging from 70% to 95% of the invoice value.

For example, if you possess outstanding invoices amounting to £10,000 and your invoice finance provider offers an 85% advance rate, your availability would be £8,500 (£10,000 x 0.85). This is the sum you can immediately access to fulfil your working capital requirements.


Liability in invoice finance is the financial commitment your business assumes when utilising this financing option. It represents the amount you owe to the financing provider for the funds accessed against your outstanding invoices.

Unlike traditional debt, liability is a short-term arrangement based on the value of your invoices. As your customers settle their invoices, the liability decreases and is completely paid off once all invoices are paid. 

Understanding the Relationship

The connection between availability and liability in invoice finance is dynamic. As you raise fresh invoices and your customers make payments, your availability expands while your liability dwindles. The aim is to maintain a harmonious balance between availability and liability, ensuring your business accesses the requisite funds without incurring unwarranted financial encumbrances.

Here are some crucial aspects to consider when managing availability and liability:

  1. Consistently monitor your availability and liability to manage your cash flow proficiently, making sure you have sufficient working capital for your daily operational needs.

  2. Understand the costs and fees associated with invoice finance to evaluate the financial impact on your business and make informed decisions on when and how to use it. For example, factoring in fees when negotiating charge rates.

  3. Invoice finance enables growth opportunities like product diversification, market expansion, and accepting larger contracts. Evaluate availability to capitalise on these prospects.

  4. Develop a well-considered repayment strategy that aligns with your cash flow and business objectives.

How to Access and Generate The Reports


Select Reporting Module: Look for the 'Reports' tool in the navigation bar within Sonovate.

Choose Report Type: Select the type of report you want to generate (Availability, Liability, Fund Aged Debt or Cash Allocations).

Generate Report: Click the desired report. For the Funded Aged Debt and Cash Allocations reports, click on the download icon and choose the dates you wish to view.

To download a copy of the Availability and/or the Liability reports, click on the report and then click the 'Export' button as shown below: 


5. Review and Analyse: Once the report is generated, review and analyse the data.


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