Factors that affect goodwill can be internal and external. Internal factors refer to the factors which are within the company. While external factors refer to the factors that are a part of the economic environment of the company. Some of the factors that affect goodwill include Efficient Management, Location, Quality of Goods and Services, Contracts, Access to Supplies, After-Sale Services to Customers, Patents owned by the Firm, Effective Advertisement, and Good Customer Relations. These are important factors in terms of the goodwill of a company.