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Internal Finance


A company can mobilize finance through external and internal sources. A new company may not raise internal sources of finance and they can raise finance only external sources such as shares, debentures and loans but an existing company can raise both internal and external sources of finance for their financial requirements. Internal finance is also one of the important sources of finance and it consists of cost of capital while compared to other sources of finance.

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Internal source of finance may be broadly classified into two categories:

A. Depreciation Funds

B. Retained earnings

Sourced From: Financial Management By C. Paramasivan And T. Subramanian
Internal Finance Internal Finance Reviewed by Blog Editor on Tuesday, March 21, 2017 Rating: 5

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