Internal financing in economics and finance

Hello everyone! Welcome to today's lesson on internal financing. In the vast realm of economics and finance, internal financing plays a pivotal role. It refers to the practice of utilizing a company's own resources to fund its operations, growth, or investments, rather than relying on external sources. This can include retained earnings, sale of assets, or even re-investing profits. Internal financing is often seen as a strategic move, allowing companies to maintain control and avoid the potential risks associated with external funding.