External finance


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External finance

Funding that is not generated by a firm's operations: new borrowing or a stock issue.

External Finance

Financing for a company that comes from a new issue of stocks or bonds. That is, external finance occurs when a company looks outside itself to raise capital; rather than using its retained earnings or depreciation, it issues securities. See also: Internal Finance.
References in periodicals archive ?
Fewer firms reported increased costs of new borrowing, although the study also revealed that demand for external finance is set to increase.
THE use of external finance by small firms has fallen to its lowest level since the start of 2010 according to a major quarterly report.
The purpose of this study is to assess the ability of firms to raise external finance through equity, when the firms have different characteristics, have adopted different levels of corporate governance, and are doing business in a weak legal environment.
Seven out of every 10 new business ventures are started without any external finance.
A Case Study: the Integration of Transmission Processes: External finance premia in the Euro area: stage three of EMU versus stage two
9% of GDP this year, government debt is modest at 28% of GDP and access to external finance is currently good.
In this position, he was responsible for all internal and external finance and accounting, IT and legal matters.
Moody's would consider moving the rating outlook back to stable if some of the following factors materialise: A more stable policy environment, characterised by solid progress in implementing the economic and institutional reforms needed to weaken the ties between economic growth and external finances and improve Turkey's institutional environment; and/or improved investor confidence in the economy supporting an easing of external financing pressures.
Fitch last upgraded Brazil's sovereign ratings (long-term foreign and local currency Issuer Default Ratings) to 'BB' from 'BB-' in June, reflecting the improvement in the country's external finances, especially the sharp reduction in the public sector's external exposure.
Fitch Ratings last upgraded Brazil's sovereign ratings (long-term foreign and local currency Issuer Default Ratings [IDR]) to 'BB' from 'BB-' in June, reflecting the improvement in the country's external finances, especially the sharp reduction in the public sector's external exposure.
Fitch Ratings last upgraded Brazil's sovereign ratings (long-term foreign and local currency Issuer Default Ratings (IDR)) to 'BB' from 'BB-' in June, reflecting the improvement in the country's external finances, especially the sharp reduction in the public sector's external exposure.
The rating actions reflect the ongoing improvement in Brazil's public and private external finances and a macroeconomic policy framework that has proved robust in the face of political and financial market pressures.