1.Profits retained in the business
- These are profits deliberately not paid out to owners and shareholders, but these profits are kept back for reinvestment purposes of the businesses. ‘ Ploughed back’ profit.
2. Sale of assets
- Established companies often find they have assets that are no longer fully employed. These could be sold to raise cash.
3. Reductions in working capital
- When businesses increase stock levels or sell goods on credit to customers (debtors) , they use a source of finance.
- When companies reduce these assets- by reducing their working capital- capital is released, which acts as a source of finance for other uses.