internal funds

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 ?
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.
Scouring the county's trust funds, internal funds and enterprise funds to see if those typically set-aside monies could be used toward shortfalls in the county's general fund.
However, Australian SMBs need to be educated on vendor financing and leasing options, since most of their purchases are being made with internal funds.
3 percent of its market capitalization - with bonds, bank borrowings and internal funds.
Construction expenditures are expected to increase in the near term; internal funds are expected to meet virtually all of these needs.
Liquidity shows steady increases from 179 days at FY2001 to 212 days at FY2006 despite the use of internal funds to fund some capital needs.
Best Buy spokeswoman Laurie Bauer said the retailer has cut back on expansion plans so it can pay for store opening costs with internal funds.