Ace the CLFP Credit & Financial Savvy Test 2026 – Master the Money Game!

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What is the difference between a revolver's 'availability' and 'commitment' in a revolving facility?

Commitment is the unused portion at a given time.

Availability is the total available amount.

Commitment equals the unused portion; availability equals the total amount.

The commitment is the total available amount; availability is the unused portion; availability is affected by borrowing base, covenants, and usage.

The key idea is understanding what each term represents in a revolving facility. The commitment is the total amount the lender has agreed to provide—the facility’s size or capacity. Availability is how much of that commitment you can still draw right now; it’s the unused portion of the facility.

Availability is not the same as the total facility. It depends on how much you’ve already borrowed (usage) and on other factors that can limit how much you may borrow, such as the borrowing base (the value of eligible collateral), covenants, and other usage like outstanding letters of credit. So, while the commitment defines the overall ceiling, the actual money you can still access at any moment (availability) is the unused portion, shaped by these constraints.

That’s why the correct choice states that the commitment is the total available amount (the facility’s size), while availability is the unused portion and is affected by borrowing base, covenants, and usage. The other options mix up the relationship by swapping unused portions with the total commitment or by misdefining which part is which.