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 ?
Carimin said it will full satisfy the purchase consideration with cash though internal funds.
VC said that employees' salary cheques have bounced and the varsity has been forced to use its internal funds for petty expenses.
This indicates that governments should pursue liberal corporate policies in a deregulated environment to channelize internal funds of the firms into effective investment expenditures.
The firm said that it used internal funds to complete the deal.
Most recently, he was the head of risk at Mariner Investment Group where he focused on Internal funds.
The authors also find that larger, more established firms have more flexibility to pay for R&D with internal funds, and that they can also access more external funds from investors who have knowledge about their current and potential performance.
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.
ISAT should be able to repay the maturing bonds using its internal funds.
Almost 70% of companies used internal funds as one of the ways to finance asset purchase whilst, a third used this method solely over the last three years, a trend predicted to continue for the next three.
The Korean bank was planning to fund the acquisition of KEB using internal funds.
UNG has contributed to the venture's financing from 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.