Finance Your Small Business
A common term in finance but one rarely used in business is "plowback."
Plowback is taking all or a portion of retained earnings (profits) and essentially plowing them back in the company for working capital (such as inventory and material purchases), overhead (such as marketing or R&D) or capital purchase (such as new plant and equipment) – items that are usually financed through outside capital acquisition such as debt or equity.
With capital raising options dwindling by the
