Examples of internal sources of finance pros and cons

what is a “retained profit”?

the money a business keeps from its profits to reinvest into the business

what is “the sales of non-current assets”?

selling unused assets

what does “use of working capital” mean?

how a business manages it’s day to day expenses, in order to make additional funds to invest into something else the business needs

Pros of using working capital

does not pay interest

cons of using working capital

hard to negotiate

pros of retained profits

does not pay interest

cons of retained profits

slow growth, limited funds

pros of sales of non-current assets

immediate cash flow, debt reduction, getting money from something you’re not using

cons of sales of non-current assets

asset cannot be sold for it’s original price, short term solution for income