internal funds

(redirected from Internal Fund)

Internal Funds

Money that a person or company raises from within to begin or expand operations. Internal funds often form a company's seed money; that is, one may start a company with one's own funding rather than with a loan or an IPO. There is a famous story that Ross Perot established Electronic Data Systems with $1,000 in personal savings; in this case, Perot's savings account contained internal funds. See also: Bootstrap, External funds.

internal funds

Funds that are raised within a firm. For example, income after taxes and noncash expenses, such as depreciation, provide a firm with funds to use in the acquisition of investments. Companies that are able to finance expenditures with internal funds are not required to rely on borrowing or the sale of additional shares of stock. Compare external funds.
References in periodicals archive ?
Initial investment could be provided through internal fund of the shareholders in proportion with the share split without using loan fund.
It also describes how information from an internal fund accounting system can be used to prepare external financial statements in conformity with generally accepted accounting principles.
The fund needed for the building he new factories will be a combination of the remaining fund from bond issue last year and the company's internal fund and a bank loan.
It plans to spend Rp 167 billion in internal fund including Rp90 billion to finance the construction of a new animal feed plant in Bati-bati, South Kalimantan and Padang, West Sumatra and Rp17 billion to move the factory of PT Multibreeder Tbk in Lampung and Rp40 billion to move sauce and nugget plant.
Siahaan said the company has available US$ 120 million in internal fund to spend for the purchases of the tankers n and the shortage will be covered with a loan or bond funds.
Yuanita said B&B will put up US$ 360 million in internal fund for the project.
The vessel owner said the move is part of its continued fleet-renewal and expansion program and it will be financed with a mix of internal funds and borrowings.
The project's financing is provided by the Asian Development Bank ($350 million), the Japan International Development Agency ($300 million), the Fund for Reconstruction and Development of Uzbekistan ($250 million) and Uzbekenergo's internal funds.
20% of the investment will be project capital to be contributed from internal funds of the Company while the remaining part will be funded by bank loans.
The banking group said that the move would allow it to focus on its internal funds.
Jet Airways would finance its current and future aircraft purchases by a combination of its own internal funds, commercial loans and possible future share floats, Goyal said without giving further details.
The practice goes on to state that wherever possible similar internal funds should be combined into a single fund for the purpose of external financial reporting and that governments should periodically review the fund structure to ensure that superfluous funds are not included in the CAFR.