The differences between interned and external sources of raising funds are summarized in the table given as follows:
| Basis |
Internal sources |
external sources |
| Meaning |
Internal sources of capital are those sources that are generated within the business. |
External sources of raising are those which are outside the business. |
| Example |
ploughing back of profits,equity shares |
financial institution ,loans from banks,prerence shares debentures public deposits,lease financing commercial |
| Reliability |
It is more reliable |
It is more reliable. |
