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Sources and Uses of Funds

Sources and Uses of Funds defined: “Sources and Uses of Funds” is a restriction placed on an investment into a private company by the investor. For example, the investor’s contract may demand that the Sources and Uses of Funds are to be to make acquisitions, or only to purchase a particular piece of real estate such as a factory. Often Sources and Uses of Funds will be very loose and say that the Sources and Uses is “for general corporate purposes”.

Above is a definition for “Sources and Uses of Funds” from PrivCo’s Private Company Knowledge Bank, the definitive online and e-book guide to private companies and private company deals.

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