can u explain Sources of Generation Basis and its external and internal sources of funds?

Sources of funds can also be classified according to the source from which they are raised. Sources of generation basis can be classified into the following two categories.

1. Internal Sources: Internal sources of funds refer to those sources that are endogenous to the organisation. In other words, internal sources of funds lie within the organisation. For example, a business can raise funds internally by selling off surplus inventories, using its retained earnings, etc. A business can fulfill its small and limited need of funds through internal sources.  
2. External Sources: External sourcs of funds refer to those sources that are generated from outside the organisation. That is, external sourcs of funds lie outside the business. For example, loans from commercial banks and other financial institutions are external sources of funds. When a business wishes to raise large amount of funds, it is done through external sources.