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OFinance glossary

Own Funds

Quick definition

Capital held by shareholders after deducting debts.

Overview

Own funds represent the financial resources contributed by shareholders that remain in the business after debts are deducted.

Common Use Cases

Assessing financial strength.
Funding internal growth.
Strengthening credibility with creditors.
Providing potential dividends for shareholders.

Examples in Small Businesses

Calculating the financial safety margin.
Using own funds for strategic investments.
Improving the financing structure.

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