The term $$additional funds needed $($AFN$)$ is generally defined as follows:

Funds that are obtained automatically from routine business transactions.

Funds that a firm must raise externally from non$-$spontaneous sources, i$.$e$.,$ by borrowing or by selling new stock, to support operations.

The amount of assets required per dollar of sales.

The amount of internally generated cash in a given year minus the amount of cash needed to acquire the new assets needed to support growth.