Understanding availableLimit

In Pliant, the availableLimit on organizations or card accounts represents the total spending capacity of the account. It applies across all account types — prefunded, credit, or hybrid — and is calculated based on the creditLimit and balance.

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Key Concepts

creditLimit

• Represents the fixed amount a credit or hybrid organization can spend per month.
• Not applicable for prefunded organizations.

balance

• Initially starts at 0 EUR for all organizations.
• Changes with actions like purchases or top-ups.
  • Prefunded/Hybrid Accounts: Reflects the current funds available.
  • Credit Accounts: Reflects the remaining credit after spending.

availableLimit

• Represents the actual amount of money that can be spent.
• Calculated as:
  balance + creditLimit = availableLimit
• Can be:
  • Less than the credit limit if money has been spent.
  • Equal to the credit limit if no spending has occurred.
  • More than the credit limit if additional funds are topped up (hybrid accounts).

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Account Type Examples

Prefunded Account

This account operates with funds preloaded into the account.

• Directly after onboarding:
  • balance = 0 EUR
  • creditLimit = 0 EUR
  • availableLimit = 0 EUR
• After top-up payment of 1,000 EUR:
  • balance = 1,000 EUR
  • creditLimit = 0 EUR
  • availableLimit = 1,000 EUR
• After spending 100 EUR:
  • balance = 900 EUR
  • creditLimit = 0 EUR
  • availableLimit = 900 EUR

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Credit Account

This account operates solely on a credit limit.

• Directly after onboarding with a 1,000 EUR credit limit:
  • balance = 0 EUR
  • creditLimit = 1,000 EUR
  • availableLimit = 1,000 EUR
• After spending 100 EUR:
  • balance = -100 EUR
  • creditLimit = 1,000 EUR
  • availableLimit = 900 EUR

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Hybrid Account

This account combines a prefund balance and a credit limit.

• Directly after onboarding with a 1,000 EUR credit limit:
  • balance = 0 EUR
  • creditLimit = 1,000 EUR
  • availableLimit = 1,000 EUR
• After top-up payment of 200 EUR:
  • balance = 200 EUR
  • creditLimit = 1,000 EUR
  • availableLimit = 1,200 EUR
• After spending 300 EUR:
  • balance = -100 EUR
  • creditLimit = 1,000 EUR
  • availableLimit = 900 EUR