# Estimating Minimum Allowance for Current Expected Credit Losses

*Even with zero historical losses, the expected credit loss is not zero. The Rule of Three can be used to estimate the likelihood of a loss, as explained in the handout page.*

By [TechAccountingPro](https://paragraph.com/@tap) · 2026-05-30

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CECL Minimum Allowance Handout

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Estimating the minimum amount of current expected credit loss allowance in a scenario where the company had no previous history of write-offs or customer defaults.

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*Originally published on [TechAccountingPro](https://paragraph.com/@tap/estimating-minimum-allowance-for-current-expected-credit-losses)*