Foreign resources


The external resources are those that do not come from the own funds of a company and the capital subscribed by it. They are located in the liabilities of the balance sheet, so they are payment obligations.

They are considered of great importance, since they allow the company to complement its availability of money (its forms of financing). Generally, they are usually made up of creditors (for the provision of services and commercial bills to pay) and bank debt.

It is extremely important in a company to meet payment commitments on time to maintain and increase the level of external resources (by acquiring more debt, for example, and having positive financial leverage).

Therefore, it is important to have a financial model with recurring income and constant cash flow inflows, in order to face debt commitments with third parties. Even those business models that prepay the strongest debt items in terms of volume are more attractive to investors and shareholders, since they reflect the seriousness of the company in a bidirectional way, both in the generation of income and commitment to your expenses.

The external resources are the sum of the short-term and long-term obligations:

Third-party resources = current liabilities + non-current liabilities

Example of Outside Resources

The external resources of a company can be found in the balance sheet (liabilities) of the same, in the categories of Current liabilities and non-Current liabilities.

Let's see the graph of the Balance of this company X expressed in euros:

  • Current Liabilities: Represents that type of external financing with maturity not exceeding one year. For example, business notes.
  • Non-Current Liabilities: Represents that type of external financing with a maturity of more than one year. For example, bonds, obligations, or long-term loans.

Third-party financing is the sum between current and non-current liabilities:

Third-party resources = Current Liabilities + Non-Current Liabilities

RA = 14,500 + 5100 = 19,600

From a technical point of view, the ideal is a balance between own resources and external resources (in conditions of a similar cost), since, if we depend excessively on external financing, there is a danger of external overdependence. On the contrary, if we depend exclusively on our own resources, we are exhausting our internal source of resources.

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