> ## Documentation Index
> Fetch the complete documentation index at: https://docs.blnkfinance.com/llms.txt
> Use this file to discover all available pages before exploring further.
# How Negative Balances Work in Blnk
> Learn what negative balances and how to work with them in your Ledger.
export const CtaCallout = props => {
const {title, buttonLabel, href, trackingEvent, buttonTarget, rel = "noopener noreferrer", children} = props;
const handleCtaClick = () => {
if (typeof window === "undefined" || !trackingEvent) {
return;
}
try {
window.dispatchEvent(new CustomEvent("blnk:docs-cta", {
detail: {
name: trackingEvent,
href
}
}));
} catch {}
try {
window.posthog?.capture?.(trackingEvent, {
href
});
} catch {}
const gaPayload = {
cta_href: href
};
try {
window.gtag?.("event", trackingEvent, gaPayload);
} catch {}
try {
window.dataLayer = window.dataLayer || [];
window.dataLayer.push({
event: trackingEvent,
...gaPayload
});
} catch {}
};
const isExternal = typeof href === "string" && (/^https?:\/\//i).test(href);
const target = buttonTarget ?? (isExternal ? "_blank" : undefined);
const linkRel = isExternal ? rel : undefined;
return ;
};
While using the Blnk Ledger, you might encounter negative balances. A negative balance simply indicates that the ledger has more debits than credits.
This indicator allows you to quickly assess the financial position of a ledger balance at a glance while reviewing your data.
`balance` = `credit_balance` - `debit_balance`
| Balance ID | balance | debit\_balance | credit\_balance |
| :---------- | ------: | -------------: | --------------: |
| bal\_abc123 | -20000 | 45000 | 65000 |
| bal\_def456 | 10000 | 20000 | 30000 |
In the table above, the balance for `bal_abc123` is -20000, indicating that debits exceed credits, resulting in a negative balance. On the other hand, `bal_def456` has a positive balance of 10000 because credits exceed debits.
***
## How to avoid negative balances
Negative balances are not a cause for alarm.
However, if you prefer to avoid negative balances in your ledger, here’s how you can adjust your setup.
Use a designated funding pool balance to pre-fund your ledger balances with starting balances. This approach ensures you can post transactions on those balances without triggering overdrafts.
This ensures that only the funding pool balance incurs a negative balance, while your customer balances and other critical balances remain unaffected.
```json {5,8} theme={"system"}
{
"precise_amount": 12000023,
"precision": 100,
"reference": "ref_123abc",
"source": "@FundingPool",
"destination": "bal_customer",
"description": "Creating a starting balance",
"apply_overdraft": true
}
```
Always ensure this implementation aligns with your [money movement map](/ledgers/money-movement-map). Depending on the flow of funds within your system, not all balances may need to be pre-funded.
This decision should be guided by the specific requirements of your financial system.
## Need help?
We are very happy to help you make the most of Blnk, regardless of whether it is your first time or you are switching from another tool.
To ask questions or discuss issues, please [contact us](mailto:support@blnkfinance.com) or [join our Discord community](https://discord.gg/7WNv94zPpx).
Sign up and manage your ledger with our back-office dashboard. You can invite teammates to collaborate and manage your ledger operations directly from the dashboard.