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 ?
Pia Roman-Tayag, Bangko Sentral ng Pilipinas managing director, at a recent forum cited a World Bank report that showed some 81.2 percent of Philippine businesses rely on internal funds to finance expansion of keep themselves alive.
Project funding will come from a mix of internal funds, including cash flows generated from the project and bank borrowings, it said.
The recourse being weighed by the power firm will include tapping preliminary into internal funds to settle such obligation or tap short-term financing.
This project will supply water to new housing developments such as the Afri-Village in Greenhills where 4 000 units are being built.The Rand West City Local Municipality (RWCLM) is using its internal funds to finance the project.
The project costs 4.6 million euros provided from MEPSO's internal funds, a loan from the European Bank for Reconstruction and Development and a grant from the European Commission.
The SEM shares were acquired free from all encumbrances and the acquisition was funded from the issuer's internal funds," Berjaya Philippines said.
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.
We should also learn from Iran and Japan, that in difficult times, mobilisation of internal funds can give a boost to economic growth and can also provide jobs to thousands of unemployed people.
Liquid internal funds are 129% of the maximum amount of CP that may be secured by the internal resources of the IHFA after application of Fitch's stress scenarios.
The purchase price amounted to approximately SEK24m for the net assets and is reportedly financed by internal funds.
"We will speed up efforts to normalize operations of Daewoo Electronics as sufficient liquidity has been secured from the group's internal funds and proceeds from the sale of Smart Savings Bank," a Dayou Group official said.
The acquisition is funded from internal funds. The acquisition of Symbiomix and the Solosec franchise expands Lupin's branded women's health specialty business, which is presently anchored by Methergine (methylergonovine) tablets.