Internal Financing
/ɪnˈtɜrnəl faɪˈnænsɪŋ/
Definitions
- (n.) The practice of funding a business’s operations or expansion using its own internally generated resources rather than acquiring external debt or equity.
The corporation relied on internal financing to fund its new project instead of issuing bonds.
Forms
- internal financing
Related terms
See also
Commentary
Internal financing emphasizes resource utilization within the entity, avoiding dilution or obligation to outside parties, often reflected in retained earnings or asset liquidation.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.