Internal sources of finance
Internal sources mean the money that is in or created by the business. They can be internal or external.
Retained Profit
This is the profit the business makes. The proceeds can be distributed to the owners or put back into the business for development.
Net current assets
Net current assets (or working capital) are current assets (stock, debtors, money in the bank) minus current liabilities. It is money the business has available to pay its day-to-day debts.
Sale of assets
A business can release finance by selling assets like tools and equipment. But they must ensure that the assets are not necessary to run the business.