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External funds

Business External efficiencyExternal market

external funds
funds brought in from outside the corporation, perhaps in the form of a bank loan, or the proceeds from a bond offering, or an infusion of cash from venture capitalists.

 


EXTERNAL FUNDS - Funds originating from a source outside the corporation to increase cash flow and to a...
EXTERNAL LIQUIDITY RISK - A term defined by the Federal Reserve. The risk that a bank will experience f...

External Funds
Outside funds infused into a corporation to supplement the firm's cash flow. They are used for expansion and working capital needs. The external funds can originate from a bank loan, a bond offering, or from venture capitalists.

Funding that is not generated by a firm's operations: new borrowing or a stock issue.External funds
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an obligation to repay the principal and the coupon (interest) on the maturity of the loan. Bonds enable the issuer to finance long-term investments with external funds.
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Venture capital financing supplements other personal or external funds that an Entrepreneur is able to tap, or takes the place of loans of other funds that conventional financial institutions are unable or unwilling to risk.

external funds The funds brought in from outside the firm, such as through a bond or equity offering. external market Sometimes referred to as the Euromarket, the external market consists of securities...

See also: Funding, Bank loan, Expense, Banks, Extraordinary item

Business External efficiencyExternal market

 
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