In our business world, "capital is the lifeblood of every business enterprise" (Smith, 2012). Capital can set up a business, purchase non-current assets, such as machinery or plant, and pay off day-to-day expenses, such as wages, lighting, electricity, etc. Every company needs someone to manage finance with different types of short-term internal finance in mind. , long-term internal, short-term external and long-term external financial resources. These are the four main ways you can raise capital, but these sources may involve different repayment rates and durations and the amount you will receive. When the owner and manager think of using internal or external financial resources, they must consider the purpose, amount, repayment, interest and security which is called PARIS. The purpose is to identify the type of financing suitable for the request, the amount is how much should be borrowed, the repayment is how much and when the company should repay the financing. Interest is the financial cost amount and security is the business need to place business assets or personal family as a deposit before receiving any financing. These are the main concepts that the owner and manager must remember before applying any type of financing. (Cox and Fardon, 2009) Director and managers need to effectively think about raising capital in an effective way that includes lower repayments and control of the company. (Gillespie, 2001)2) Internal Finance Internal finance uses the profit or capital earned or owned by the company and does not involve any agreement between directors or managers that is the owner's decision. (Atrill and McLaney, 2011) There are 4 main types of internal sources which are “Personal Savings”, “Retained Earnings”, “Work Papers…half of the paper…is it fit for their purpose” company and you need to keep a mind PARIS when requesting or using any type of financing. Internal finance uses what the company has earned over several years, but not all companies can make profits in the first few years, so they need the support of external finance, even if external finance will have to repay the financing in the future. External finance plays an important role in improving corporate finance, as the company receives huge amounts of capital from the bank or government in a matter of days or weeks. Internal finance is also time-consuming because the company has to wait a few years to accumulate the retained profit and can only be used in small investments or small expansions. Based on such evidence, using external financing can increase business capital in the blink of an eye, and the payback depends on the amount of financing required by the company..