external funds

External funds

Funds originating from a source outside the corporation to increase cash flow and to aid in expansion efforts, e.g., bank loan or bond offering.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

External Fund

1. A mutual fund that invests predominantly or exclusively in securities issued in foreign countries. An external fund does not necessarily concentrate on any single country, but it does not invest in securities from the country in which it operates. An external fund should not be confused with a global fund, which invests in both domestic and foreign securities. An external fund is also called an international fund.

2. Funding that a company raises from any source other than itself. Two common types of external funds are bond and stock issues. A company seeks external funds when it wishes to expand its operations or other activities, but lacks the cash flow to do it independently. Providers of external funds almost always expect to receive something in return; for example, bondholders expect interest and principle repayment, while stockholders expect to receive a portion of the ownership of the company.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

external funds

The funds that are raised from sources outside a firm. The monies that are received from the sale of stock and bonds are external funds. Firms seek external funds when they are unable to finance expenditures with money generated from operations. External funds are particularly important for a young, fast-growing company that has capital requirements that greatly outstrip its ability to generate funds internally. Compare internal funds.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Georgieva said the World Bank would increase cooperation with Pakistan in the areas of disbursement programmes, lending, and guarantees provision for raising external funds. The premier informed the World Bank official of the recent steps taken by his government to improve Pakistan's economic situation.
The CEO of the World Bank pledged to further strengthen cooperation with Pakistan in the areas of disbursements programme lending and guarantees provided for raising external funds.
BEIJING -- World Bank has pledged to further strengthen cooperation with Pakistan in the areas of disbursements programme lending and guarantees provision for raising external funds.
The CEO of the World Bank pledged to further strengthen cooperation with Pakistan in the areas of disbursement programmes, lending and guarantees provision for raising external funds.
Almost half of these external funds are devoted to three diseases - HIV/AIDS, Tuberculosis (TB) and malaria.
tech investors as the car maker seeks external funds for its Polestar performance electric vehicle brand, Reuters reports.
'Furthermore, all the projects being financed by external funds are subject to multiple agency evaluations such that only those projects with the highest economic rates of return are selected,' Beltran added.
According to Farida Komalasari, Director of the Research Institute and Community Service (LRPM) President University, through this workshop, it is expected that the quality and quantity of research will increase, as well as community service activities; both independently funded (internal funds) and external funds, including grants from the Higher Education.
Surely PS1m from these internal funds or other external funds could be beneficially invested in a facelift for local churches?
But any additional zones will only be set up where residents are prepared to cover the cost for signs, stationery and door stickers, about PS2-PS3 per resident depending upon the size of the area unless external funds are available.
The rating was weakened by the firm's high leverage, its reliance on external funds for expansion and the working capital intensive nature of the industry.