External funding. Sources of business financing

12.10.2019

Domestic funding involves the use of those financial resources, the sources of which are formed in the process of financial and economic activities of the organization. An example of such sources is net profit, amortization, accounts payable, reserves for future expenses and payments, and deferred income.

At external financing funds are used that enter the organization from the outside world. Sources of external financing can be founders, citizens, the state, financial and credit organizations, non-financial organizations.

Grouping of financial resources of organizations by sources of their formation is shown in the figure below.

The financial resources of the organization, in contrast to the material and labor resources, are distinguished by their interchangeability and susceptibility to inflation and devaluation.

At present, the actual problem for domestic industrial enterprises is the state, the wear of which has reached 70%. In this case, we are talking not only about physical, but also about obsolescence. There is a need to re-equip Russian enterprises with new high-tech equipment. In this case, the choice of the source of financing for the specified re-equipment is important.

The following sources of funding are identified:

Internal sources of the enterprise(net profit, depreciation, sale or lease of unused assets).
Involved funds(foreign investment).
Borrowed funds(, bills).
Mixed(complex, combined) financing.

Internal sources of enterprise financing

Involved funds

When choosing a foreign investor as a source of financing, an enterprise should take into account the fact that the investor is interested in high profits, the company itself and his share of ownership in it... The higher the share of foreign investment, the less control remains with the owner of the enterprise.

Remains debt financing, at which there is a choice between and. Most often, in practice, the effectiveness of leasing is determined by comparing it with a bank loan, which is not entirely correct, because for each specific transaction you have to take into account its specific conditions.

Credit - as a source of financing for an enterprise

- a loan in cash or commodity form provided by the lender to the borrower on terms of repayment, most often with the payment of interest by the borrower for the use of the loan. This form of funding is the most common.

Benefits of a loan:

the credit form of financing is distinguished by greater independence in the use of funds received without any special conditions;
most often, a loan is offered by a bank serving a particular company, so that the process of obtaining a loan becomes very efficient.

The disadvantages of a loan include the following:

loan term in rare cases exceeds 3 years, which is unbearable for enterprises aimed at long-term profit;
to obtain a loan, a company requires the provision of collateral, often equivalent to the amount of the loan itself;
in some cases, banks offer to open a current account as one of the conditions for bank lending, which is not always beneficial for the enterprise;
With this form of financing, the company can use the standard depreciation scheme for the purchased equipment, which obliges it to pay property tax over the entire period of use.

Leasing as a source of financing for an enterprise

is a special complex form of entrepreneurial activity that allows one party - the lessee - to effectively renew fixed assets, and the other - the lessor - to expand the boundaries of activities on mutually beneficial terms for both parties.

Leasing advantages:

Leasing assumes 100% lending and does not require you to start payments immediately. When using a regular loan to buy property, the company must pay about 15% of the cost from its own funds.
Leasing allows an enterprise that does not have significant financial resources to start implementing a large project.

It is much easier for an enterprise to obtain a leasing contract than a loan, because the equipment itself serves as security for the transaction.

A lease agreement is more flexible than a loan... Loans are always limited in size and maturity. With leasing, the company can calculate the receipt of its income and work out with the lessor an appropriate financing scheme convenient for it. Repayment can be made from funds received from the sale of products that are produced on leased equipment. The company has additional opportunities to expand its production capacity: payments under the lease agreement are distributed over the entire duration of the agreement and, thus, additional funds are freed up for investment in other types of assets.

Leasing does not increase the debt in the balance sheet of the enterprise and does not affect the ratio of own and borrowed funds, i.e. does not reduce the company's ability to obtain additional loans. It is very important that the equipment purchased under a lease agreement may not be on the lessee's balance sheet during the entire term of the agreement, which means that it does not increase assets, which exempts the company from paying taxes on the acquired fixed assets.

RF retained the right to choose the balance sheet of property received (transferred) in financial lease on the balance sheet of the lessor or lessee. The initial cost of the property being leased is the amount of the lessor's expenses for its acquisition. In addition, since 2002, regardless of the chosen method of accounting for the property-subject of the lease agreement (on the balance sheet of the lessor or lessee), lease payments reduce the taxable base (Article 264 of the Tax Code of the Russian Federation). Article 269 of the Tax Code of the Russian Federation introduces a limitation on the amount of interest on loans that the lessor can attribute to the reduction of the tax base, but in other cases the lessor can attribute the amount of interest on the loan to the reduction of the tax base.

Lease payments paid by the enterprise, are entirely related to production... If the property received under the lease is recorded on the balance sheet of the lessee, then the enterprise can receive benefits associated with the possibility of accelerated depreciation of the leased asset. Depreciation charges for such property can be calculated based on its value and norms approved in the prescribed manner, increased by a factor of no more than 3.

For leasing companies unlike banks no deposit needed if the property or equipment is liquid on the secondary market.

Leasing allows an enterprise to legally minimize taxation, as well as to attribute all equipment maintenance costs to the lessor.

At the place of origin, the financial resources of the enterprise are classified into:

domestic financing;

external financing.

Internal financing involves the use of those financial resources, sources of which are formed in the process of financial and economic activities of the organization. An example of such sources is net profit, amortization, accounts payable, reserves for future expenses and payments, and deferred income.

With external financing, funds are used that enter the organization from the outside world. Sources of external financing can be founders, citizens, the state, financial and credit organizations, non-financial organizations.

The financial resources of the organization, in contrast to the material and labor resources, are distinguished by their interchangeability and susceptibility to inflation and devaluation.

The following sources of funding are identified:

Internal sources of the enterprise (net profit, depreciation charges, sale or lease of unused assets).

Raised funds (foreign investment).

Borrowed funds (credit, leasing, bills).

Mixed (complex, combined) financing.

Internal sources of enterprise financing

In modern conditions, enterprises independently distribute the profits that remain at their disposal. Rational use of profits involves taking into account such factors as the implementation of plans for the further development of the enterprise, as well as the observance of the interests of owners, investors and employees.

The advantages of internal financing of an enterprise include the absence of additional costs associated with raising capital from external sources, and maintaining control over the activities of the enterprise by the owner. The disadvantage of this type of enterprise financing is that it is not always possible to use it in practice.

The second internal source of funding is the company's profit after taxes. As practice shows, most enterprises do not have enough of their own internal resources to renew fixed assets.

Involved funds

Credit - a loan in cash or commodity form provided by the lender to the borrower on terms of repayment, most often with the payment of interest by the borrower for the use of the loan. This form of funding is the most common.

Benefits of a loan:

the credit form of financing is distinguished by greater independence in the use of funds received without any special conditions;

most often, a loan is offered by a bank serving a particular company, so that the process of obtaining a loan becomes very efficient.

The disadvantages of a loan include the following:

loan term in rare cases exceeds 3 years, which is unbearable for enterprises aimed at long-term profit;

to obtain a loan, a company requires the provision of collateral, often equivalent to the amount of the loan itself;

in some cases, banks offer to open a current account as one of the conditions for bank lending, which is not always beneficial for the enterprise;

With this form of financing, the company can use the standard depreciation scheme for the purchased equipment, which obliges it to pay property tax over the entire period of use.

Leasing is a special complex form of entrepreneurial activity that allows one party - the lessee - to effectively renew fixed assets, and the other - the lessor - to expand the boundaries of activities on mutually beneficial terms for both parties.

Leasing advantages:

Leasing assumes 100% lending and does not require payments to start immediately. When using a regular loan to buy property, the company must pay about 15% of the cost from its own funds.

Leasing allows an enterprise that does not have significant financial resources to start implementing a large project.

It is much easier for an enterprise to obtain a lease contract than a loan, since the equipment itself serves as the security for the transaction.

A lease agreement is more flexible than a loan. Loans are always limited in size and maturity. With leasing, the company can calculate the receipt of its income and work out with the lessor an appropriate financing scheme convenient for it. Repayment can be made from funds received from the sale of products that are produced on leased equipment. Additional opportunities for expanding production capacities open up for the enterprise: payments under the lease agreement are distributed over the entire duration of the agreement and, thus, additional funds are freed up for investment in other types of assets.

Leasing does not increase the debt in the balance sheet of the enterprise and does not affect the ratio of own and borrowed funds, i.e. does not reduce the company's ability to obtain additional loans. It is very important that the equipment purchased under a lease agreement may not be on the balance sheet of the lessee during the entire term of the agreement, which means that it does not increase assets, which frees the company from paying taxes on the acquired fixed assets.

Lease payments paid by the enterprise are charged entirely to production costs. If the property received under the lease is recorded on the balance sheet of the lessee, then the company can receive benefits associated with the possibility of accelerated depreciation of the leased asset. Depreciation charges for such property can be calculated based on its value and norms approved in the prescribed manner, increased by a factor of no more than 3.

Leasing companies, unlike banks, do not need collateral if the property or equipment is liquid on the secondary market.

Leasing allows an enterprise to legally minimize taxation, as well as to attribute all equipment maintenance costs to the lessor.

1. Sources of funding.

It can be:

Own money or money of partners;
money received from the sale of shares;
the profit that the activities of the company bring.

It happens that these opportunities are not enough.

For example, when creating a joint-stock company, the founders will need funds even before the shares go on sale: they need to print the shares, advertise them accordingly, register a company, rent an office space. Or: the company works and makes a profit; at some point, the owners decide to expand the business, but the profit alone is not enough to fund the event.

All sources of financing in business can be divided into internal and external.

2. Internal sources of financing - sources that the company itself has.

2.1. Profit is the main internal source of financing for a firm.

The firm's profit ("P") is the difference between its income (for simplicity, we will assume that they are equal to the proceeds from the sale of products - "D") and costs ("3") or the cost of production ("S"): P = D - 3, or P = D - C.

Since D = C x K and C = C / unit x K, where "D" is the firm's income (in our case, the proceeds from the sale of products); "C" - product price; "K" - the volume of its implementation; "C / unit" - the cost of a unit of production, we can write the following formula: P = K (C-C / unit).

Now it is not difficult to figure out what determines the size of the company's profit:

First, from the prices of its goods "C". With constant costs and a given volume of product sales, the profit grows with an increase in price.
Secondly, from the cost per unit of production - "C / unit". For a given sales volume and price, a decrease in the unit cost of a product leads to an increase in profits.
Thirdly, from the volume of sales of products - "K". You can achieve an increase in profits without changing the price and unit cost of a product, but by increasing the volume of production and sales of goods.

2.2 Gross and Residual Income.

The value "P" in the formula P = M - C (3), economists call gross, or total profit. Part of this profit will go towards paying taxes to the state. Some amount may be paid to the bank in the form of interest.

The amount that remains after we deduct all the amounts listed from the gross profit "P" is called residual, or net profit. It can be used to finance a business: for the construction of new buildings or the rebuilding of old ones, the purchase of new machinery, equipment, computers, or even a series of scientific studies. Shareholders receive their dividends from it (if we are talking about a joint-stock company). An entrepreneur can spend part of the residual profit on stimulating employees by paying them bonuses in excess of wages. Some funds will be spent on advertising, for charitable purposes, and finally, for the personal needs of the entrepreneur himself (if we talk about an individual enterprise).

2.3 Stock problem.

Managing residual profits wisely is an important task for an entrepreneur. The example with the store shows that the higher the turnover rate, the higher the profit. On the other hand, the firm has to purchase goods for sale more often. The manager may have an idea to increase stocks - to expand warehouses, purchase warehouse equipment, spending part of the profit on this. Perhaps this will be useful for business, but it should be remembered that money invested in inventory falls out of circulation during the storage of goods and, therefore, does not bring profit.

There is always a risk that the stock will remain unsold and the firm will lose on this - the larger the stock, the greater the risk. Therefore, the manager can be more forward-thinking, keeping inventory at the minimum necessary level, and invite the owners of the company to spend this amount for other purposes, such as marketing research.

3. External sources of funding.

3.1. Other firms. A firm that is underfunded may find partners who have the same problems. By creating a joint business, partners are able to expand their financial resources through the effect of economies of scale.

3.2 Selling shares is also a way to raise finance from outside, and this is a very important source of funding, since a firm may have hundreds or thousands of shareholders.

Banks. If a firm cannot or does not want to look for additional funds for its development by merging with other firms, it borrows them from a bank. The bank gives the company funds for a specific period. The bank takes a fee for its services - the payment for the loan. The bank requires guarantees from the firm (loan security). The firm can also insure itself in case of bankruptcy or, say, natural disaster. Such insurance can serve as a guarantee for the bank as well. Credit is an important external source of financing for the activities of firms. He plays a very important role in modern business. Its advantages are speed, availability and flexibility.

Trade (or commodity) credit. It is provided to each other by the firms themselves in the form of sale of goods with deferred payment. Similar transactions are being made between retailers and the public. This is the purchase of goods in installments.

State. There are several forms of government budget financing. The state allocates funds to public sector enterprises in the form of direct capital investments. Public sector enterprises are owned by the state. This means that the state also owns the profit from their activities.

The state can also provide funds to firms in the form of subsidies. This is a partial financing of the activities of firms. Subsidies can be issued to both public and private firms.

The main difference between government financing and bank loans is that the company receives funds from the government free of charge and irrevocably. This means that the firm does not have to return the amount received from the state, and does not have to pay interest on it.

Another form of government financing of firms' activities is a government order. The state orders a firm to manufacture a particular product and declares itself to be its buyer. For example, if the railways in the country are owned by the state, it can order wagons and locomotives from a private company and purchase the entire batch. The state here does not finance the costs, but provides the firm with income from the sale of goods in advance.

Sources of financing the budget deficit

The sources of financing the budget deficit are approved by the legislative (representative) authorities in the law (decision) on the budget for the next financial year for the main types of attracted funds. Bank of Russia loans, as well as the acquisition by the Bank of Russia of debt obligations of the Russian Federation, constituent entities of the Russian Federation, municipalities during their initial placement cannot be sources of financing the budget deficit.

The sources of financing the federal budget deficit are:

1) internal sources in the following forms:
- loans received by the Russian Federation from credit institutions in the currency of the Russian Federation;
- government loans carried out by issuing securities on behalf of the Russian Federation;
- receipts from the sale of state-owned property;
- the amount of excess income over expenditures for state reserves and reserves;
- changes in the balances of funds on accounts for accounting for federal budget funds;
2) external sources in the following forms:
- government loans carried out in foreign currency by issuing securities on behalf of the Russian Federation;
- loans from foreign governments, banks and firms, international financial organizations, provided in foreign currency, attracted by the Russian Federation.

Sources of financing the budget deficit of a constituent entity of the Russian Federation can be internal sources in the following forms:

State loans carried out by issuing securities on behalf of the constituent entity of the Russian Federation;
- budgetary loans and budget loans received from budgets of other levels of the budgetary system of the Russian Federation;
- receipts from the sale of property owned by a constituent entity of the Russian Federation;
- change in the balances of funds on accounts for accounting for budgetary funds of the constituent entity of the Russian Federation.

Sources of financing the local budget deficit can be internal sources in the following forms:

Municipal loans carried out by issuing municipal securities on behalf of the municipality;
- loans received from credit institutions;
- budgetary loans and budget loans received from budgets of other levels of the budgetary system of the Russian Federation;
- proceeds from the sale of municipal property;
- change in the balances of funds on the accounts for the accounting of funds from the local budget.

The most important condition for financing (covering) budget deficits has become a state loan. A state loan is understood as the entire set of financial and economic relations in which the state acts as a borrower.

To cover the state budget deficit, the profits of the Central Bank of the Russian Federation and loans from the Central Bank of the Russian Federation are used.

The external ineffective source of financing the budget deficit was loans from international financial organizations, mainly the International Monetary Fund (IMF).

In order to balance the budgets, the representative bodies of power can set the maximum size of the budget deficit. In case of exceeding the maximum deficit level, a mechanism for sequestering expenditures is introduced.

Sequestration consists in a proportional reduction in government spending, for example, by 5, 10, 15%. monthly for all budget lines during the remaining financial year.

The states cover the deficit mainly by issuing money and domestic and foreign borrowing. However, the emission of money leads to inflation, an increase in prices for goods and services, which leads to a decrease in the living standards of the population.

The source of financing the deficit is loans from the Central Bank of Russia, This is the cheapest source of financing, since business non-market relations are developing between the Central Bank of Russia and the Government of the Russian Federation. interest rates for such loans, as a rule, they are symbolic.

Further strategy in the field of deficit and surplus management necessitates the development of a new concept based on reducing the attraction of borrowed funds, reducing debt obligations, using, first of all, internal reserves for income growth based on the development of industrial and agricultural production.

Sources of enterprise financing

The basis for the normal functioning of the enterprise is the availability of a sufficient amount of financial resources to ensure the ability to meet the emerging needs of the enterprise for current activities and development.

The financial resources of an enterprise are cash incomes and receipts at the disposal of an economic entity and intended to fulfill financial obligations, implement costs for simple and expanded reproduction and economic incentives at the enterprise.

The formation of financial resources is carried out from sources that can be divided into internal (own funds) and external (borrowed funds).

The main sources of financing are own funds: authorized capital, profit, depreciation charges, etc.

The authorized capital is the amount of funds provided by the owners to ensure the statutory activities of the enterprise.

The authorized capital is formed upon the initial investment of funds. Its value is announced during the registration of the enterprise, and any adjustments to the size of the authorized capital (additional issue of shares, reduction of the par value of shares, making additional contributions, admitting a new participant, joining part of the profit, etc.) are allowed only in cases and in the manner provided for by the current legislation and constituent documents.

Among the internal sources of financial resources, the most important are profit and depreciation charges.

The profit of an enterprise is formed in the process of its production activity, being its final result. In a competitive environment, the labor collective is interested in the growth of profits, since it is a source of production growth, and consequently, an increase in the welfare of employees of the enterprise. However, such a source is not all the gross profit received as a result of the economic activity of the enterprise, but only a part of it that remains after taxes and payments to the budget, called net profit.

Depreciation charges represent the monetary value of the depreciation value of fixed assets and intangible assets. Depreciation deductions are included in the cost of production and then, as part of the proceeds from the sale of products, are returned to the settlement account of the enterprise, becoming an internal source of formation of accumulation funds.

A specific source of funds is special purpose funds and targeted financing: gratuitously received values, as well as irrevocable and repayable state appropriations for financing non-production activities related to the maintenance of social, cultural and communal facilities, for financing the costs of restoring the solvency of enterprises located in full budget financing, etc.

Additional capital as a source of funds for an enterprise is formed as a result of an increase in the value of property revealed as a result of revaluation, receipt of share premium (from additional issue of shares, sale of shares above par), free receipt of valuables or property from other enterprises and persons.

External financing - the use of funds from the state, financial and credit organizations, non-financial companies and citizens.

Financing through borrowed capital is the provision of funds by creditors on terms of repayment and payment.

In the structure of borrowed capital, there are short-term and long-term borrowed funds, accounts payable.

Long-term borrowed funds are loans and borrowings received by the organization for a period of more than a year, the maturity of which does not come earlier than in a year. Long-term loans and borrowings are used to finance non-current and part of current assets.

Short-term borrowed funds - liabilities, the maturity of which does not exceed one year. Short-term credits and loans serve as a source of coverage (financing) of current assets.

Accounts payable arises in the settlement process for two reasons:

In transactions of purchase and sale and contracts to suppliers and contractors (commodity credit), as well as bills of exchange for payment and advances received;
in financial and distribution relations to the personnel of the organization, the budget, extra-budgetary funds in case of violation of the terms of payments of accrued income.

Accounts payable means attracting funds from other enterprises, organizations or individuals into the economic circulation of an enterprise. The use of these borrowed funds within the current deadlines for payment of bills and obligations is lawful.

Sources of financing for activities

Financing of entrepreneurial organizations is a set of forms and methods, principles and conditions of financial support for simple and extended reproduction.

Financing refers to the process of generating funds, or more broadly, the process of forming the capital of a firm in all its forms.

The concept of "financing" is quite closely related to the concept of "investment", if financing is the formation of funds, then investing is their use. Both concepts are interrelated, but the first precedes the second.

When choosing sources of financing for the activities of an enterprise, it is necessary to solve five main tasks:

Determine the need for short- and long-term capital;
identify possible changes in the composition of assets and capital in order to determine and optimal composition and structure;
ensure continued solvency and, therefore, financial stability;
use own and borrowed funds with maximum profit;
reduce the cost of financing economic activities.

Sources of financing of the enterprise are divided into internal (equity) and external (borrowed and attracted capital).

Equity includes:

Authorized capital (formed as a result of the contribution of the founders of the company during its creation);
additional capital (formed as a result of the revaluation of the organization's fixed assets);
reserve capital (formed by deductions from the profits of the organization for subsequent unforeseen needs).

Due to the replenishment from the profit of the enterprise, its financial stability increases;
the formation and use of own funds is stable;
the costs of external financing (for servicing debt to creditors) are minimized;
simplifies the process of making managerial decisions on the development of an enterprise, since the sources of additional costs are known in advance.

The level of self-financing of an enterprise depends not only on its internal capabilities, but also on the external environment (tax, depreciation, budget, customs and monetary policy of the state).

External financing provides for the use of funds from the state, financial and credit organizations, non-financial companies and citizens. In addition, it involves the use of financial resources of the founders of the enterprise. Such attraction of the necessary financial resources is often the most preferable, since it ensures the financial independence of the enterprise and facilitates the conditions for obtaining bank loans in the future.

In a market economy, the production and economic activity of a company is impossible without the use of borrowed funds, which include: bank loans, commercial loans, i.e. borrowed funds from other organizations; funds from the issue and sale of shares and bonds of the organization; budgetary allocations on a repayable basis, etc.

Attraction of borrowed funds allows the company to accelerate the turnover of working capital, increase the volume of committed business transactions, reduce the volume of work in progress. However, the use of this source leads to the emergence of certain problems associated with the need for subsequent servicing of the assumed debt obligations.

Financial equilibrium is such a ratio of own and borrowed funds of the association, in which it is able to fully repay its old and new debts at its own expense. The point of financial equilibrium calculated according to certain rules does not allow the unification of catering enterprises, on the one hand, to increase borrowed funds, and on the other hand, it is irrational to use the already accumulated own funds.

If we take into account that own and borrowed financial resources go through the stages of formation, distribution and payments, and their final value goes to replenishment of property, then the analysis of financial stability at each of these stages makes it possible to identify the conditions for strengthening or losing the financial equilibrium of the studied association of enterprises ...

Internal funding sources

The first and key sources of obtaining finance for the activities of the enterprise can be considered the own funds of the organization.

Initial capital;
Finances accumulated during the operation of the enterprise, formed internal reserve funds;
Other investments of individuals, legal entities.

The capital of an enterprise is formed at the start of the creation of an organization, when its initial capital is formed - the total funds of the founders of the business invested in the property of the company in order to provide the necessary active scope. Such capital is also called charter capital, and without it the company cannot be not only created, but also fully functioning in the future.

The ways of forming such capital depend on the legal form of organization chosen by the founders. However, regardless of this, all investments made in the authorized capital are further considered the property of the enterprise, and the investor cannot lay claim to them. So, in a situation where the company is liquidated or the investor wants to leave the founders, he is compensated only for his share of the remaining property, and the invested assets are not returned.

Where do these funds go? These are raw materials, wages for workers, energy resources, everything that is needed to produce goods and services requested by the consumer. He, in turn, pays for the final product, after which the invested funds are returned to the firm's accounts. Further, funds for the needs of the organization are deducted, and the residual money is considered the profit of the organization.

The amount of profit is associated with the fulfillment of certain conditions, the key of which is the ratio of income and expenses. However, the legal framework contains some procedures governing profit, for example, the procedure for assessing depreciation of an asset and investments in authorized funds.

So, profit is the primary resource for the cash reserve. Such funds are needed to cover sudden loss or loss, they provide some insurance against unforeseen circumstances. How to form a reserve is determined by the normative and statutory acts of the enterprise, as well as its organizational and legal form.

Savings and social funds are based on profits and are invested in: salaries paid in excess of the established ones, bonuses, material assistance, compensation for housing, meals, transport, VHI policies for employees.

In addition to such reserves, additional capital can be attributed to the capital of the enterprise.

His education comes from a variety of sources, such as:

Income from shares issued by the company and sold for a high price;
Funds arising from the revaluation of the company's own property;
The difference in exchange rates.

Additional capital can be used as a means for the growth of the authorized capital; repayment of debt and cash losses during the calendar year; distributed among the owners of the organization.

The amortization fund also refers to the internal sources of financing for the enterprise. It is a monetary expression of the depreciation of funds and property assets and is considered a resource for financing both conventional and extended production.

Both external and internal sources can also be attributed to targeted capital investments from the budget, from higher officials and companies. Particularly highlighted are subsidies and subventions.

The first is funds from the budget issued to the second person on the basis of equity financing.

The second is the provided budgetary funds for a specific target expenditure, without the need to return them.

The main feature of targeted support is that such money can only be used in specific areas and in accordance with the accompanying documentation. Such funds become part of the capital of the organization.

Own funding sources

Own sources of investment - this is the total value of the enterprise's funds owned by him and providing his investment activities.

Own sources of investment financing include authorized capital, profit, depreciation charges, special funds formed from profit, on-farm reserves, funds paid by insurance authorities in the form of compensation for losses.

Own funds also include funds donated to the enterprise for targeted investment.

The company's own funds, in terms of the way they are attracted, can be both internal (for example, profit, depreciation) and external (for example, an additional placement of shares).

The amounts raised by the enterprise from these sources are not returned.

Authorized capital - the initial amount of funds provided by the owner to ensure the statutory activities of the enterprise.

The authorized capital is the main and, as a rule, the only source of financing at the time of the creation of a commercial organization.

It is formed during the initial investment of funds.

Its value is established during the registration of an enterprise, and any changes in the size of the authorized capital are allowed only in the cases and in the manner provided for by the current legislation and constituent documents.

During its creation, the founders can invest in the authorized capital of an enterprise both monetary funds and tangible and intangible assets.

Additional capital is a source of enterprise funds, it reflects the increase in the value of non-current assets as a result of the revaluation of fixed assets and other material assets with a period useful use over 12 months.

All types of fixed assets are subject to revaluation.

It may also include the amount of the excess of the actual offering price of shares over their par value (share premium of a joint-stock company).

The formation of the reserve fund is carried out through compulsory annual deductions from profits until it reaches the established amount.

The reserve capital can be used by a decision of the meeting of shareholders to cover the company's losses, as well as to redeem the company's bonds and buy back its own shares in the absence of other funds. The reserve capital cannot be used for other purposes.

Net profit is the main form of an enterprise's income.

It is defined as the difference between the proceeds from the sale of products (works, services) and its full cost.

External sources of funding

The main internal sources of financing for any business are net profit, depreciation, sale or lease of unused assets, etc. However, their volumes are usually insufficient to expand the scale of activities, implement projects, introduce new technologies, etc. Therefore, it becomes necessary attracting own funds from external sources.

Enterprises can raise their own funds by increasing the authorized capital through additional contributions from founders or by issuing new shares. The possibilities and methods of attracting additional equity capital significantly depend on the legal form of business organization.

Joint-stock companies in need of investment can carry out additional placement of shares by open or private subscription (among a limited circle of investors).

In general, an initial public offering (IPO) of an enterprise's shares is a procedure for selling them on an organized market in order to attract capital from a wide range of investors.

According to the Federal Law “On the Securities Market”, a public offering is understood as “the placement of securities by open subscription, including the placement of securities at trading on stock exchanges and / or other organizers of trading on the securities market”.

Thus, the IPO of a Russian company is the placement of an additional issue of OJSC shares by open subscription on stock exchanges, provided that the shares were not traded on the market prior to the placement. At the same time, in accordance with the directives of the Federal Financial Markets Service, at least 30% of the total volume of an IPO should be placed on the domestic market.

In general, preparing and conducting an IPO involves four stages:

1. At the first (preparatory) stage, the company must develop a placement strategy, select a financial consultant, switch to international financial reporting standards, audit financial statements and internal control systems for 3-4 years preceding the IPO, carry out the necessary structural changes, create a public credit history, for example, by issuing bonds.
2. At the second stage, the main parameters of the upcoming IPO are determined, procedures for legal and financial due diligence are carried out.
3. At the third stage, the prospectus is prepared and registered, a decision is made on the issue, information about the IPO is communicated to potential investors, and the final offering price is determined.
4. At the final stage, the actual placement takes place, that is, the admission of the company to the exchange and the subscription to shares.

Funding through the issue of ordinary shares has the following advantages:

This source does not imply mandatory payments, the decision on dividends is made by the board of directors and approved by the general meeting of shareholders;
the shares do not have a fixed maturity date - they are constant capital and are not subject to "return" or redemption;
an IPO significantly increases the status of an enterprise as a borrower (the credit rating rises, according to experts, the cost of attracting loans and debt servicing decreases by 2-3% per annum), shares can also serve as collateral to secure debt;
the circulation of the company's shares on stock exchanges provides owners with more flexible options for exiting the business;
the capitalization of the enterprise increases, a market assessment of its value is formed, more favorable conditions are provided for attracting strategic investors;
the issue of shares creates a positive image of the company in the business community, including the international one, etc.

TO common disadvantages financing by issuing ordinary shares should include:

Granting the right to share in the profits and management of the company to a greater number of owners;
the possibility of losing control over the enterprise;
higher cost of the attracted capital in comparison with other sources;
the complexity of organizing and conducting the issue, significant expenses for its preparation;
additional emission can be viewed by investors as a negative signal and lead to a drop in prices in the short term.

It should be noted that the manifestation of these shortcomings in the Russian Federation has its own specifics. In addition to them, both external factors (underdevelopment of the stock market, peculiarities of legal regulation, availability of other sources of financing) and internal constraints (unpreparedness of most enterprises for an IPO, the wary attitude of owners to the possible costs of "transparency ", Fears of loss of control, etc.) Let's consider them in more detail.

A significant problem is the time lag between the date of the decision on the placement of shares and the beginning of their circulation on the secondary market. According to RTS specialists, on average it takes about six months to prepare and conduct an IPO.

Another significant limitation is the requirement for "transparency". Disclosure of information in an IPO is required to a much greater extent than in obtaining various types of loans. At the same time, due to the formed legal climate and established business practice (the prevalence of closed transactions, “gray” settlement schemes and tax optimization, non-transparent business structure), many Russian enterprises react very painfully to the requirement of “transparency”. Disclosure of information about ultimate owners, tax reduction schemes, etc. can make a company an easy target for takeover with the use of judicial, law enforcement and fiscal authorities.

Many Russian enterprises are not ready for an IPO. Business transparency in most cases is a consequence of having a clear development strategy (an economically viable business plan) and a corresponding management structure that allows you to achieve your goals, manage growth, control risks and use capital efficiently. Only a few domestic enterprises meet these criteria.

The owners of Russian enterprises are intimidated by the possibility of losing control over the business as a result of the IPO. According to the law "On Joint Stock Companies", it is enough to have only 2% of shares for their owner to have the right to put any issues on the agenda of the meeting of shareholders, for example, on the withdrawal general director... With free float, such a stake can be consolidated within one day of exchange trading. The owners of 10% of voting shares already have the right to call an extraordinary meeting of shareholders. Therefore, domestic businessmen prefer to independently search for a strategic investor who would agree to enter the share, providing the necessary investments.

Business owners, who nevertheless decided to carry out an IPO, are restructuring their business in such a way as to reduce possible losses from “dilution” of their shareholdings and not to lose control. After the public offering of shares, many large shareholders retain a controlling stake.

An IPO is costly. One-time costs of organizing an IPO, both direct (payment for the services of a financial consultant, underwriter, legal and audit firms, stock exchange, registrar, marketing agencies, etc.), and indirect (costs of reorganizing management and control systems, financial flows, promotion company brand) can be quite significant - from 7 to 20% of the funds raised.

Finally, the low capacity of the domestic stock market does not allow attracting significant amounts of funds. In this regard, large Russian enterprises (with a capitalization of 200 million US dollars) prefer to conduct IPOs on international markets (NYSE, NASDAQ, AIM, LSE) in the form of placing depositary receipts for their ordinary shares.

On the whole, it is now more profitable for Russian enterprises to attract loans, which in the current conditions represent a cheaper, simpler and more efficient way of raising capital.

Funding sources of the organization

At the place of origin, the financial resources of the enterprise are classified into:

Domestic financing;
external financing.

The financial resources of the organization, in contrast to the material and labor resources, are distinguished by their interchangeability and susceptibility to inflation and devaluation.

Currently, an urgent problem for domestic industrial enterprises is the state of fixed assets, the depreciation of which has reached 70%. In this case, we are talking not only about physical, but also about obsolescence. There is a need to re-equip Russian enterprises with new high-tech equipment. In this case, the choice of the source of financing for the specified re-equipment is important.

The following sources of funding are identified:

Internal sources of the enterprise (net profit, depreciation charges, sale or lease of unused assets).
Raised funds (foreign investment).
Borrowed funds (credit, leasing, bills).
Mixed (complex, combined) financing.

As a rule, the more profit is directed to expanding economic activities, the less need for additional financing. The amount of retained earnings depends on the profitability of business operations, as well as on the dividend policy adopted at the enterprise.

The disadvantage of this type of enterprise financing is that it is not always possible to use it in practice. The depreciation fund has lost its significance because the depreciation rates for most types of equipment used at Russian industrial enterprises are underestimated and can no longer serve as a full-fledged source of financing, and the permitted accelerated methods depreciation charges cannot be used for existing equipment.

The second internal source of funding is the company's profit after taxes. As practice shows, most enterprises do not have enough of their own internal resources to renew fixed assets.

When choosing a foreign investor as a source of financing, an enterprise should take into account the fact that the investor is interested in high profits, the company itself and his share of ownership in it. The higher the share of foreign investment, the less control remains with the owner of the enterprise.

Financing from borrowed funds remains, in which a choice arises between leasing and credit. Most often, in practice, the effectiveness of leasing is determined by comparing it with a bank loan, which is not entirely correct, because for each specific transaction you have to take into account its specific conditions.

Benefits of a loan:

The credit form of financing is distinguished by greater independence in the use of funds received without any special conditions;
most often, a loan is offered by a bank serving a particular company, so that the process of obtaining a loan becomes very efficient.

The disadvantages of a loan include the following:

The loan term in rare cases exceeds 3 years, which is unbearable for enterprises aimed at long-term profit;
to obtain a loan, a company requires the provision of collateral, often equivalent to the amount of the loan itself;
in some cases, banks offer to open a current account as one of the conditions for bank lending, which is not always beneficial for the enterprise;
With this form of financing, the company can use the standard depreciation scheme for the purchased equipment, which obliges it to pay property tax over the entire period of use.

Leasing advantages:

Leasing assumes 100% lending and does not require payments to start immediately. When using a regular loan to buy property, the company must pay about 15% of the cost from its own funds.
Leasing allows an enterprise that does not have significant financial resources to start implementing a large project.

It is much easier for an enterprise to obtain a lease contract than a loan, since the equipment itself serves as the security for the transaction.

A lease agreement is more flexible than a loan. Loans are always limited in size and maturity. With leasing, the company can calculate the receipt of its income and work out with the lessor an appropriate financing scheme convenient for it. Repayment can be made from funds received from the sale of products that are produced on leased equipment. The company has additional opportunities to expand its production capacity: payments under the lease agreement are distributed over the entire duration of the agreement and, thus, additional funds are freed up for investment in other types of assets.

Leasing does not increase the debt in the balance sheet of the enterprise and does not affect the ratio of own and borrowed funds, i.e. does not reduce the company's ability to obtain additional loans. It is very important that the equipment purchased under a lease agreement may not be on the lessee's balance sheet during the entire term of the agreement, which means that it does not increase assets, which exempts the company from paying taxes on the acquired fixed assets.

The Tax Code of the Russian Federation retains the right to choose the balance sheet of property received (transferred) in financial lease on the balance sheet of the lessor or lessee. The initial cost of the property being leased is the amount of the lessor's expenses for its acquisition. In addition, regardless of the chosen method of accounting for the property-subject of the lease agreement (on the balance sheet of the lessor or lessee), lease payments reduce the taxable base (Article 264 of the Tax Code of the Russian Federation). Article 269 of the Tax Code of the Russian Federation introduces a limitation on the amount of interest on loans that the lessor can attribute to the reduction of the tax base, but in other cases the lessor can attribute the amount of interest on the loan to the reduction of the tax base.

Lease payments paid by the enterprise are charged entirely to production costs. If the property received under the lease is recorded on the balance sheet of the lessee, then the enterprise can receive benefits associated with the possibility of accelerated depreciation of the leased asset. Depreciation charges for such property can be calculated based on its value and norms approved in the prescribed manner, increased by a factor of no more than 3.

Leasing companies, unlike banks, do not need collateral if the property or equipment is liquid on the secondary market. Leasing allows the company to completely

Legally, to minimize taxation, as well as to attribute all equipment maintenance costs to the lessor.

Budgetary sources of funding

Sources of financing the budget deficit are divided into internal and external.

Internal sources include:

1) government loans, carried out by issuing government securities;
2) loans received by the government from credit institutions, denominated in rubles;
3) budget loans and budget loans received from budgets of other levels;
4) receipts from the sale of state property (privatization);
5) balances of state reserves and reserves;
6) surpluses of previous years.

External sources of financing the budget deficit include:

1) government loans carried out in foreign currency by issuing government securities;
2) loans from foreign governments, banks and firms, international financial organizations, denominated in foreign currency.

The first source of domestic financing of the budget deficit is very common and includes the issuance of government short-term bonds (GKO) and federal loan bonds (OFZ). T-bills are short-term (up to 1 year) zero-coupon bonds for which the payment of the current interest income is not expected, and the discount is formed as the difference between the price of their placement (sale) and the price of redemption (redemption). OFZ are medium-term (from 1 year to 5 years) and long-term (from 5 to 30 years) government obligations involving the payment of a fixed or variable coupon (interest).

This source of funding allows you to quickly and efficiently solve budget deficit problems, however, it has a number of weaknesses:

First, when it is used, the so-called crowding-out effect occurs, which means the pulling of funds from the private sector, which could otherwise be used as investments;
Second, using this method financing the budget deficit accumulates the state internal debt;
Third, abuse of this method of financing the budget deficit can lead to a default (inability to pay debts), similar to the one that took place in our country. In this case, the government extinguished the debt on old securities by issuing new GKOs, constantly increasing their level of profitability. As a result, interest rates (including the refinancing rate of the Bank of Russia) increased several times. The government turned out to be unable to pay income on securities at the new rates, as well as to buy them out in a timely manner, which caused a crisis in the entire Russian financial system.

The efficiency of using the second method of financing the budget deficit depends on the capacity credit system the state. In our country, commercial banks do not yet have sufficient financial resources to solve this problem. In addition, the diversion of credit resources for the needs of the state reduces the investment activity of the private sector. The use of funds from the Central Bank to finance the budget deficit is prohibited by the Budget Code of the Russian Federation. This is largely due to the fact that the infusion of funds from the Bank of Russia into the country's economy is usually accompanied by their emission (printing), which contributes to the growth of inflation. In the context of rising inflation, the Oliver Tanzi effect arises - the deliberate delay by taxpayers of the deadlines for paying taxes to the state budget. Such a delay gives the taxpayer a benefit, since he will have to pay the tax arrears with cheaper money, and the gain in conditions of high inflation may exceed the amount of interest and fines due to him in this case.

Budgetary loans and credits received from budgets of other levels are not a significant source of covering the budget deficit arising at the federal level, due to the subsidization of most regions of the Russian Federation.

The privatization of state property is an important source of financing the budget deficit. It should be borne in mind, however, that the Russian government can independently decide on the privatization of only small and medium-sized enterprises. The decision to privatize large enterprises is made by the State Duma.

An important external source of covering the budget deficit is the issue of government securities denominated in foreign currency. These include, for example, Eurobonds (securities denominated in the currency of European states), OGVZ (government foreign currency loan bonds), OVGVZ (domestic government foreign currency loan bonds), etc.

However, it should be borne in mind that the ability to resort to external sources of financing the budget deficit is largely due to political factors. In addition, it depends on the country's total external debt and its ability to pay off old debts. For Russia, the possibilities of using these sources of financing the budget deficit have largely been exhausted. It should also be noted that new external borrowing increases not only the principal amount of debt, but also the cost of servicing it (interest payments).

Sources of investment financing

Finding sources of financing for investments has always been one of the critical issues in investment activities. In modern conditions for Russia, this problem remains, perhaps, the most acute and urgent.

The system of financing the investment process is made up of the organic unity of sources, methods and forms of financing investment activities.

In modern conditions, the basic sources of investment financing are:

Net profit of the enterprise;
depreciation deductions;
on-farm reserves and other funds of the enterprise;
funds accumulated by the credit and banking system;
loans and borrowings from international organizations and foreign investors;
funds from the issue of securities;
intrasystem targeted financing (receipt of funds for specific purposes from a parent organization);
funds of budgets of various levels, etc.

The Resolution of the Government of the Russian Federation "On Approval of the Temporary Regulation on Financing and Lending for Capital Construction in the Territory of the Russian Federation" No. 220 states that capital investments can be financed from:

Own financial resources and on-farm reserves of the investor (profit, depreciation charges, cash savings and savings of citizens and legal entities, funds paid by insurance authorities in the form of compensation for losses from accidents, natural disasters and other funds);
borrowed funds of investors or funds transferred to them (bank and budget loans, bond loans and other funds);
attracted financial resources of the investor (funds received from the sale of shares, shares and other contributions of members of labor collectives, citizens, legal entities);
financial resources centralized by associations (unions) of enterprises in the prescribed manner;
extrabudgetary funds;
federal budget funds provided on a non-refundable and repayable basis, funds from the budgets of the constituent entities of the Russian Federation;
funds of foreign investors.

Funding for capital investments in construction projects and facilities can be carried out both at the expense of one or at the expense of several sources.

In general, all sources of funding are usually subdivided into centralized (budgetary) and decentralized (off-budget). Centralized sources usually include funds from the federal budget, funds from the budgets of the constituent entities of the Russian Federation, local budgets and extra-budgetary funds. All the rest (net profit, depreciation charges, bank loans, securities issue, etc.) are decentralized.

The sources of funds used by the enterprise to finance its investment activities are usually divided into own, borrowed and attracted.

Own sources of investment financing include: profit, depreciation charges, on-farm reserves, funds paid by insurance authorities in the form of compensation for losses from accidents, natural disasters, etc.

Debt sources include: loans from banks and credit institutions; issue of bonds; targeted government loan; tax investment credit; investment leasing; investment seleng.

Attracted funds include: issue of ordinary shares; issue of investment certificates; contributions of investors to the authorized capital; donated funds, etc.

According to the degree of risk generation, sources can be classified into generating risk and risk-free. Classification on this basis can be useful in determining the optimal structure of investment financing.

Risk-free sources of financing include those, the use of which does not lead to an increase in the company's risks, these are: retained earnings; depreciation deductions; intrasystem targeted financing (receipt of funds for specific purposes from higher-level organizations to lower-level ones).

Sources that generate risk include those whose attraction leads to an increase in the company's risks. These include: borrowed sources (the attraction of these sources increases the financial risk of the enterprise, since their attraction is associated with an unconditional obligation to repay the debt on time with payment of interest / for use); issue of ordinary shares (the use of this source is associated with shareholder risk).

The structure of investments by funding sources, respectively, means their distribution and ratio in the context of funding sources. Improvement of this structure of investments consists in increasing the share of extra-budgetary funds to the optimal level. By this we mean the optimal share of the state's participation in the investment process.

Sources of project financing

It is no secret that investment projects require high costs. This is especially noticeable in the real estate industry. It is the most financially intensive. When a new project in the field of real estate arises at the initial stage, the company is faced with a significant problem - the need to find the missing funds, without which further development impossible. However, investors do not appear immediately, but a little later, when a third of the project has already been invested. It is good if the company has unlimited financial capabilities. But, as practice shows, this practically does not happen and you always have to look for additional sources of financing for investment projects.

In the field of real estate, all investment projects are divided into two types. The former exist at their own expense, while the latter attract additional resources. Based on this, we can say that the sources of investment can be either internal (own) or external.

Internal and external sources of financing for investment projects.

Internal sources are classified as follows:

Private money, which was formed from the depreciation of fixed capital, deductions from income for investment needs, funds transferred from insurance companies, etc.;
other types of assets (fixed assets, land, patent, trademark, license, etc.);
funds raised through the issue and sale of own shares;
money allocated by higher-level joint-stock and holding companies;
charitable contributions.

External sources of investment:

Appropriations from different budgets and funds, which provide funds on an absolutely free basis;
foreign investments, which are provided in the form of tangible and intangible participation of the authorized capital of the enterprise, or in the form of direct monetary investments of international associations and financial institutions;
different types of borrowed money. This includes loans that are given by the state and the fund for the support of entrepreneurship with a money-back guarantee, as well as loans in banking organizations, promissory notes.

Thus, if necessary, for an investment project, you can find the necessary funds, since there are quite a few sources, both internal and external.

Sources of capital financing

The composition of the economic resources used by the organization is different. Of particular importance for the success of an organization is the presence of a certain stock of funding sources.

Funding sources are financial resources used to purchase assets and carry out transactions.

Funding sources include short-term and long-term debt, preferred and common shares (balance sheet liability).

Analysis of the structure of the balance sheet liability, which characterizes the sources of funds, shows that their main types are: own and borrowed funds.

Sources of own funds are:

Authorized capital (funds from the sale of shares and share contributions of participants - the aggregate par value of all types of shares, i.e., the authorized capital reflects the amount of all obligations of the company to investors, since in the event of its liquidation or the withdrawal of a participant from its shareholders, the investor is only entitled to compensation of their share in the residual property of the enterprise); the formation of the authorized capital may be accompanied by the formation of an additional source of funds - share premium, if during the initial issue the shares are sold at a price higher than par;
reserves accumulated by the company, including retained earnings;
mobilization of internal assets (in the process of capital construction, the company may form specific sources of financing, for example, the sale of part of current assets);
other contributions from legal entities and individuals (targeted funding, donations, charitable contributions, etc.).

The main sources of borrowed funds are:

Bank loans;
deferred tax payment;
borrowed funds from other companies (loans to legal entities against debt obligations - IOUs);
funds from the sale of bonds (registered and bearer) and other securities to other companies;
accounts payable (commercial loan);
leasing (a financial transaction for the use of property through a lease).

The fundamental difference between the sources of own and borrowed funds lies in the legal content - when a company is liquidated, its owners have the right to that part of the enterprise's property that will remain after settlements with third parties.

The essence of the difference between equity and borrowed funds is that interest payments are deducted before taxes, that is, they are included in costs, and dividends on owners' shares are deducted from profits after interest and taxes.

Depending on the duration of existence, the assets of the organization, as well as the sources of funds, are divided into short-term (current) and long-term. Short-term sources include funding sources attracted for a period of less than 1 year. Long-term sources are equity and debt capital raised for a period of more than 1 year.

Own and borrowed capital is characterized by positive and negative features that affect the activities of the enterprise.

Equity capital is characterized by the following positive features:

1. Ease of attraction, since decisions related to an increase in equity capital (especially due to internal sources of its formation) are made by the owners and managers of the organization without the need to obtain the consent of other business entities.
2. Higher ability to generate profit in all spheres of activity, since its use does not require the payment of interest on loans in all its forms.
3. Ensuring the financial stability of the organization's development, its solvency in the long term, and, accordingly, reducing the risk of bankruptcy.

At the same time, own capital also has negative features:

1. Limited volume of attraction, therefore, and the possibility of a significant expansion of the operating and investment activities of the organization during periods of favorable market conditions.
2. High cost in comparison with alternative borrowed sources of capital formation.
3. An unused opportunity to increase the return on equity ratio by attracting borrowed financial resources, since without such attraction it is impossible to ensure the excess of the financial profitability ratio of the organization's activities over the economic one.

Thus, an organization using only equity capital has the highest financial stability (the autonomy ratio is equal to one), but limits the pace of its development (since it cannot provide the formation of the required additional volume of assets during periods of favorable market conditions) and does not use financial resources increase in profit on invested capital.

Debt capital is characterized by the following positive features:

1. Sufficiently broad opportunities for attracting, especially with a high credit rating of the organization, the presence of a collateral or a guarantee of the recipient.
2. Ensuring the growth of the financial potential of the organization, if necessary, a significant expansion of its assets and an increase in the growth rate of the volume of its economic activities.
3. Lower cost in comparison with equity capital due to the provision of the "tax shield" effect (removal of the cost of servicing it from the taxable base when paying income tax).
4. Ability to generate an increase in financial profitability (return on equity ratio).

At the same time, the use of borrowed capital has the following negative features:

1. The use of this capital generates the most dangerous financial risks in the organization's activities - the risk of a decrease in financial stability and loss of solvency. The level of these risks increases in proportion to the growth in the share of borrowed capital used.
2. Assets formed at the expense of borrowed capital generate a lower (other things being equal) rate of return, which decreases by the amount of interest paid on a loan in all its forms (interest for a bank loan; leasing rate; coupon interest on bonds; bill interest for commodity credit, etc.).
3. High dependence of the cost of borrowed capital on fluctuations in the financial market. In some cases, for example, with a decrease in the average interest rate on the market, the use of a previously obtained loan (especially on a long-term basis) becomes unprofitable for the organization due to the availability of cheaper alternative sources of credit resources.
4. The complexity of the attraction procedure (especially on a large scale), since the provision of credit resources depends on the decision of other business entities (creditors), in some cases requires appropriate third-party guarantees or collateral (while guarantees of insurance companies, banks and other organizations are provided as usually on a paid basis).

Thus, an organization using borrowed capital has a higher financial potential for its development (due to the formation of additional assets) and the possibility of increasing the financial profitability of its activities, however, to a greater extent generates financial risk and the threat of bankruptcy (increasing as the share of borrowed funds increases. funds in the total amount of capital used).

Any organization finances its activities, including investment, from various sources. As a payment for the use of the financial resources advanced for the activities of the organization, it pays interest, dividends, remuneration, etc. incurs some reasonable costs of maintaining its economic potential. As a result, each source of funds has its own value as the sum of the costs of providing this source.

The total amount of funds that must be paid for the use of a certain amount of financial resources, expressed as a percentage of this volume, is called the cost of capital (CC), i.e. the cost of capital is the ratio of the amount of funds that must be paid for the use of financial resources from a particular source to the total amount of funds from this source, expressed as a percentage. In the domestic literature, you can find another name for the concept under consideration: the price of capital, the value of capital, capital costs, etc.

The "cost of capital" indicator has a different economic meaning for individual business entities:

A) for investors and creditors, the level of the cost of capital characterizes the rate of return they require on the capital provided for use;
b) for business entities that form capital for the purpose of production or investment use, the level of its value characterizes the unit costs of attracting and servicing the funds used, i.e. the price they pay for using capital.

The organization by this indicator estimates how much should be paid for attracting a unit of capital (both from a specific source of funds, and as a whole for the organization for all sources).

The concept of the cost of capital is one of the basic ones in the theory of the organization's capital. The cost of capital characterizes the level of return on invested capital required to ensure the high market value of the organization. Maximization of the market value of the organization is achieved to a large extent by minimizing the cost of the sources used. The indicator of the cost of capital is used in the process of assessing the effectiveness of investment projects and the investment portfolio of an organization as a whole.

The indicator of the cost of capital is used in the process of assessing the effectiveness of investment projects and the investment portfolio of an organization as a whole. The adoption of many decisions of a financial nature (the formation of a policy for financing current assets, the decision to use leasing, planning the operating profit of the organization, etc.) is based on an analysis of the cost of capital.

In the process of assessing the cost of capital, the cost of individual elements of equity and debt capital is firstly assessed, then the weighted average cost of capital is determined.

Determination of the cost of capital of the organization is carried out in several stages:

1) identification of the main components that are sources of formation of the capital of the organization is carried out;
2) the price of each source is calculated separately;
3) the weighted average price of capital is determined based on the share of each component in the total amount of invested capital;
4) measures are being developed to optimize the capital structure and form its target structure.

The cost of capital depends on its source (owner) and is determined by the capital market, i.e. supply and demand (if demand exceeds supply, then the price is set at a higher level). The cost of capital also depends on the amount of capital raised.

The main factors influencing the cost of capital of the organization are:

1) the general state of the financial environment, including financial markets;
2) the conjuncture of the commodity market;
3) the average lending rate prevailing in the market;
4) the availability of various sources of funding for organizations;
5) the profitability of the organization's operating activities;
6) the level of operational leverage;
7) the level of concentration of equity capital;
8) the ratio of the volumes of operating and investment activities;
9) the degree of risk of the operations performed;
10) branch features activities of the organization, including the duration of the operating cycle.

The level of the cost of capital varies significantly for its individual elements (components). The element of capital in the process of assessing its value is understood to mean each of its varieties according to individual sources of formation (attraction).

These elements are capital, attracted by:

1) reinvestment of the profit received by the organization (retained earnings);
2) issue of preferred shares;
3) issue of common shares;
4) obtaining a bank loan;
5) issue of bonds;
6) financial leasing, etc.

For a comparable assessment, the value of each element of capital is expressed by the annual interest rate. The level of value of each element of capital is not constant and fluctuates significantly over time under the influence of various factors.

Sources of expenditure financing

All costs associated with the production and sale of products, enterprises produce, as a rule, much earlier than they are reimbursed from the income for the products sold. In this regard, the enterprise constantly needs funds to purchase the necessary types of raw materials, basic and auxiliary materials, semi-finished products, fuel, to pay the employees of the enterprise and a number of other costs for the production and sale of products.

The main sources of financing the costs of the enterprise are the company's own funds (statutory fund, profit) and borrowed funds (bank loans, budgetary allocations). Funds advanced for the formation of inventories, work in progress, finished goods in the warehouse and the implementation of settlements are restored after the receipt of income from the sale of products to the company's current account.

Due to the fact that the production process takes place in a certain technological sequence, when the stages of purchasing raw materials and preparing them for production continuously occur - the transformation of raw materials into semi-finished products, then into work in progress, and, finally, into finished products, the need for funds to cover production costs for each of these stages occurs at the enterprise at the same time. Instead of the previously purchased raw materials and consumed for the manufacture of semi-finished products, the enterprise needs to purchase a new batch of raw materials; The stock of semi-finished products used in work-in-progress must be replenished with a new batch of semi-finished products. And stocks of finished products in the warehouse of the enterprise during their implementation are replenished due to work in progress. As a result of such a sequence and continuity of the production process, the funds invested in these costs move from one stage to another, complete a circuit. After the completion of the circuit, they are usually fully reimbursed from the gross income of the company. Consequently, they are not spent irretrievably, but only advanced, being constantly in the turnover of the enterprise.

In this regard, each self-supporting enterprise for the normal implementation of its economic activities must have a certain amount of such funds. Enterprises at the time of their creation are endowed with such funds through the formation of a statutory fund, both at the expense of their own sources and at the expense of borrowed funds.

The basis for determining the required amount of such funds is the volume of production, estimates of production costs, the duration of the production cycle, the conditions for the procurement and acquisition of raw materials, fuel and other necessary materials.

In subsequent years of the enterprise's activity, the necessary increase in funds is covered by its own resources (profit) or bank loans.

The costs of the formation and reproduction of fixed assets, i.e. for the creation, reconstruction, expansion and restoration of fixed assets for production purposes are also carried out at the expense of the enterprise's own funds (statutory fund, depreciation deductions, profit) or at the expense of borrowed and attracted funds (bank loans, long-term allocations from the budget, issue of securities).

Enterprises also spend on social and cultural activities aimed at improving the qualifications of workers, training, improving the socio-cultural and living conditions of employees of the enterprise. This also includes the costs of the creation and reconstruction of fixed assets for non-production purposes, the maintenance of clubs, preschool institutions, children's recreation camps, the operation of medical institutions, etc. These expenses, which are important for the social development of the team, are partly included in gross expenses, partly carried out at the expense of profits, budgetary and earmarked receipts, funds of trade union organizations, income from clubs, receipts from parents in the form of payments for the maintenance of children in preschool institutions, etc.

Structure of funding sources

The financial resources of the organization are the aggregate of its own funds and receipts from outside, which are at the disposal of the company and intended to fulfill its financial obligations, to finance the current costs and costs associated with the expansion of production.

The availability of financial resources in the required amounts, as well as their effective use, predetermine the financial well-being of the enterprise, financial stability, solvency and balance sheet liquidity.

An enterprise cannot exist without funding. Internal and external sources of financing mean own and attracted (borrowed) funds. Various classifications of sources of funds are known.

The main element of the above scheme is equity capital. Sources of own funds are:

1) authorized capital (funds from the sale of shares and share contributions of participants);
2) reserves accumulated by the enterprise;
3) other contributions from legal entities and individuals (targeted funding, donations, charitable contributions, etc.).

The main sources of funds raised include:

1) loans from banks;
2) borrowed funds;
3) funds from the sale of bonds and other securities;
4) accounts payable.

The fundamental difference between the sources of own and borrowed funds lies in the fact that in the event of liquidation of an enterprise, its owners have the right to that part of the enterprise's property that will remain after settlements with third parties.

The main sources of financing are own funds. The company's own funds are formed at the expense of internal (this is the profit remaining at the disposal of the company, depreciation deductions) and external sources (these are additional contributions to the authorized capital, additional emission and sale of shares, receipt of gratuitous financial assistance, other external sources of formation of own financial resources) ...

Here is a brief description of these sources.

The authorized capital is the amount of funds provided by the owners to ensure the statutory activities of the enterprise.

1) for a state-owned enterprise - the value appraisal of property assigned by the state to the enterprise on the basis of full economic control;
2) for a limited liability partnership - the sum of the owners' shares;
3) for a joint stock company - the aggregate par value of shares of all types;
4) for a production cooperative - the value appraisal of the property provided by the participants for the conduct of activities;
5) for a leased enterprise - the amount of contributions of employees of the enterprise;
6) for an enterprise of a different form, allocated to an independent balance sheet, - the value assessment of the property assigned by its owner to the enterprise on the basis of full economic control.

If the creation of an enterprise is carried out, then contributions to its authorized capital can be monetary funds, tangible and intangible assets. At the time of the transfer of assets in the form of a contribution to the authorized capital, the ownership of them passes to the economic entity, and investors at this moment lose their property rights to these objects. If it becomes necessary to liquidate an enterprise or withdraw a participant from a company or partnership, then he has the right only to compensation for his share within the residual property, but not to return the objects that he transferred at one time in the form of a contribution to the authorized capital. Thus, the authorized capital reflects the amount of the company's obligations to investors.

The authorized capital is formed upon the initial investment of funds, and its value is announced upon registration of the enterprise. Any changes in the size of the authorized capital (additional issue of shares, reduction in the par value of shares, making additional contributions, accepting a new participant, joining part of the profit, etc.) are allowed only in cases and in the manner provided for by the current legislation and constituent documents.

When forming the authorized capital, additional sources of funds may be formed - share premium. This source arises during the initial issue, when the shares are sold at a price higher than par. The received amounts are credited to the additional capital. Depreciation deductions are an internal source of financial resources of the enterprise. They represent the monetary value of the depreciation value of fixed assets and intangible assets and are an internal source of financing for both simple and extended reproduction.

Profit is the main source of funds for a dynamically developing company. It is present in the balance sheet:

1) explicitly - as retained earnings;
2) in a veiled form - as funds and reserves created at the expense of profit.

The amount of profit depends on many factors, the main of which is the ratio of income and expenses. The current regulatory documents provide for the possibility of some kind of regulation of profits by the management of the enterprise.

We list the following regulatory procedures:

1) varying the boundary of the classification of assets to fixed assets;
2) accelerated depreciation of fixed assets;
3) the applied method of depreciation of low-value and wearing out items;
4) the procedure for the assessment and amortization of intangible assets;
5) the procedure for assessing the contributions of participants to the authorized capital;
6) the choice of a method for assessing inventories;
7) the procedure for accounting for interest on bank loans used to finance capital investments;
8) the procedure for creating a reserve for doubtful debts;
9) the procedure for attributing certain types of expenses to the cost of goods sold;
10) the composition of overhead costs and the method of their distribution.

Profit is the main source of formation of the reserve capital (fund), which is designed to compensate for unforeseen losses and possible losses from economic activities, that is, it is insurance in nature. The procedure for the formation of the reserve capital is fixed in the regulatory documents that govern the activities of the enterprise, as well as in its statutory documents.

Additional capital is a source of enterprise funds, which is formed as a result of the revaluation of fixed assets and other material values. Regulatory documents prohibit its use for consumption.

Specific sources of funds include special purpose funds and earmarked funding:

1) values received free of charge;
2) irrevocable and refundable state appropriations:
- to finance non-production activities related to the maintenance of social, cultural and household facilities;
- to finance the costs of restoring the solvency of enterprises that are fully funded by the budget, etc.

Debt sources of financing

Debt capital is loans from banks and financial companies, loans, payables, leasing, commercial paper, etc.

Fruitful financial activity of any enterprise is practically impossible without attracting borrowed capital from outside. Borrowed funds make it possible to significantly expand the scope of the entity's core activities, accelerate the formation of the necessary financial funds, ensure a more profitable use of own financial resources, and, as a result, increase the liquidity and financial value of the enterprise.

Ideally, the basis of an economic entity should be its own funds, however, practice in our country shows that for the most part, the basis is borrowed. That is why the market for borrowed funds is the most important aspect of both the financial and economic activities of an enterprise. It is aimed at achieving a high end result of activity.

Classification of borrowed funds of the enterprise:

Classification attribute	Types of borrowed funds
1. By purposes of attraction	Borrowed funds raised to ensure the reproduction of non-current assets; Borrowed funds raised to replenish current assets; Borrowed funds raised to meet other needs.
2. By sources of attraction	Borrowed funds attracted from external sources; Borrowed funds raised from internal sources (internal accounts payable).
3. By the period of attraction	Borrowed funds attracted for a long-term period (more than 1 year); Borrowed funds attracted for a short-term period (up to a year).
4. By the form of attraction	Funds attracted in cash (financial credit); Funds raised in the form of equipment (financial leasing); Funds attracted in commodity form (commodity or commercial credit.
5. By the form of security	Unsecured borrowed funds; Funds secured by surety or guarantee; Funds secured by a pledge or mortgage.

Funds that are temporarily attracted by an institution, enterprise, organization and are subject to return to the relevant individuals or legal entities from whom they were borrowed and to whom they were not paid. As a rule, payables are unpaid taxes, unfulfilled payments to suppliers for goods shipped, unpaid accrued wages, unpaid insurance premiums, unpaid debts. In other words, accounts payable are invoices that must be paid in the normal course of business. Accounts payable within the current due dates for payment of bills and obligations are considered natural.

The financial condition of an enterprise largely depends on the size, composition and structure of borrowed funds, i.e. the ratio of long-term, medium-term and short-term financial liabilities, as well as the presence of overdue debts.

Attraction of borrowed funds into the turnover of an enterprise is a normal phenomenon. This contributes to a temporary improvement in the financial condition, provided that they are not frozen in circulation for a long time and are returned in a timely manner. Otherwise, overdue accounts payable may arise, which ultimately leads to the payment of fines and a deterioration in the financial situation. Therefore, in the process of analysis, it is necessary to study the composition, the prescription of the appearance of accounts payable, the presence, frequency and reasons for the formation of overdue debts to resource suppliers, personnel of the enterprise for wages, budget, to determine the amount of penalties paid for late payments.

At the same time, if the funds of the enterprise are created mainly due to short-term liabilities, then its financial position will be unstable, since constant operational work is required with short-term capital, aimed at monitoring their timely return and attracting other capital into circulation for a short time.

Consequently, the financial position of the enterprise largely depends on how optimal the ratio of equity and borrowed capital is. Developing the right financial strategy in this matter will help many businesses to improve the efficiency of their activities.

The attracted sources of financing include, as a rule, investment funds.

The attraction of credit financing is associated with the provision of a loan or loan to the company based on the positive financial results of its previous economic activities. Attraction of investments occurs in anticipation of the future financial efficiency of the company, and this efficiency is associated with the implementation of the investment project.

When attracting financing from credit sources, only the borrower company bears responsibility for its use and the associated risks, and it is responsible for its credit obligations with all its assets. When attracting investment, not loans, the risks of implementing an investment project are shared between all parties to the investment project, and the company is responsible for these financial obligations only within the framework of the project being implemented.

Attraction of financing from investment sources does not require payment of interest, however, it is associated with greater control over the use of investment funds, up to partial or complete loss of control over the company.

A bond loan is a form of long-term loan issued by any borrower, such as a government or corporation. The financial instrument of a bonded loan is a bond.

A bond is an issue-grade security securing the right of its owner to receive a bond from the issuer within the term stipulated in it for its par value or other property equivalent. A bond may also provide for the right of its owner to receive a fixed percentage of the par value of the bond or other property rights. Bond yield is interest and / or discount (discount from par).

Corporate bonds are the main instrument for borrowing in real business.

Along with bonded loans, enterprises can attract borrowed funds in the form of accounts payable and credit capital.

Accounts payable, constantly at the disposal of the enterprise, consists of arrears in remuneration of personnel, arrears in tax payments and fees, to suppliers and contractors, to shareholders for the payment of dividends, etc.

The use of accounts payable as a source of financial resources is due to the fact that for a number of transactions there is a gap between the time of payment calculation and the time of the actual transfer of funds.

These funds do not belong to the company and have a designated purpose.

Credit capital - a set of funds on a returnable basis transferred for temporary use for a fee in the form of interest.

Bank loan - the provision of funds in a loan to legal entities by credit and financial institutions licensed by the Central Bank of Russia, with the collection of loan or bank interest, the rate of which is determined by agreement of the parties, taking into account the average rate.

Bank loan is classified:

By maturity - for on-call loans subject to repayment within a fixed period after receipt of official notification from the lender; for short-, medium- and long-term loans, depending on the purpose of use;
- by repayment method - for loans repaid in a lump sum and loans repaid in installments during the entire term of the loan agreement;
- by methods of lending interest - on loans, interest on which is paid at the time of its general repayment; loans, interest on which is paid in equal installments throughout the term of the loan agreement, loans, interest on which is withheld by the bank at the time of their immediate issuance to the borrower;
- according to the availability of collateral - for trust loans (the only form of collateral for the return of which is the loan agreement itself); secured loans; loans secured by financial guarantees of third parties.

Factoring is a type of short-term lending and intermediary activity. It includes the collection of the buyer's receivables, the provision of a short-term loan to the seller, and the release of the seller from credit risks related to transactions.

When carrying out factoring operations, the receivables are converted into cash, i.e. can immediately be used as a source of financing for current activities. This helps to accelerate the turnover of working capital, reduce distribution costs.

In the money turnover of enterprises, along with bank loans, there are funds from other creditors, including supplier enterprises, permanent business partners in production and commercial transactions.

A commercial loan is a financial and economic relationship between legal entities in the form of sales of products or services with a deferred payment. A commercial loan is one of the ways of short-term financing. It is provided by the supplier and is issued in different ways: a bill of exchange, an advance payment to the buyer, an open account.

A commercial loan differs from a bank loan in that:

The creditor is not a special credit organization, but any legal entity associated with the production or sale of goods and services;
- is provided exclusively in a commodity form;
- the average cost of a commercial loan is always below the average bank interest rate;
- when the transaction is legalized, the loan fee is included in the price of the goods.

For the implementation of technical support and re-equipment of business, modernization and expansion of production, enterprises can use such an effective source of raising funds for the purchase of new equipment, such as leasing. Leasing allows you to quickly respond to changes in market conditions, renew fixed assets without resorting to large-scale investments, and avoid obsolescence of equipment.

Leasing is a special type of entrepreneurial activity, which consists in investing by a leasing company of its own or borrowed funds by acquiring production property for its subsequent lease.

The following conclusions can be drawn:

1. Financing of entrepreneurial organizations is a set of forms and methods, principles and conditions of financial support for simple and extended reproduction. Financing refers to the process of generating funds or, more broadly, the process of forming the capital of a firm in all its forms;

2. Sources of financing of the enterprise are divided into internal (equity) and external (borrowed and attracted capital).

Domestic financing involves the use of own funds and, above all, net profit and depreciation charges.

Self-financing has a number of advantages:

Due to the replenishment from the profit of the enterprise, its financial stability increases;
- the formation and use of own funds is stable;
- costs of external financing (for servicing debt to creditors) are minimized;
- the process of making managerial decisions on the development of an enterprise is simplified, since the sources of additional costs are known in advance.

3. Attraction of borrowed funds allows the company to accelerate the turnover of working capital, increase the volume of business transactions, reduce the volume of work in progress.

Thus, financing based on borrowed capital is not so profitable, since lenders provide funds on a repayable and payable basis, that is, they do not participate with their money in the company's equity capital, but act as a lender. Comparison of various financing methods allows the enterprise to choose the best option for financial support of current operational activities and coverage of capital costs.

Sources of government funding

Financing is a gratuitous and irrevocable provision of funds by the state in various forms - to enterprises, organizations and institutions for the implementation of their current activities.

Irrevocability and gratuitousness of financing distinguish it from lending, as well as from the provision of loans on terms of repayment and repayment.

Funding is carried out on the basis of the following principles: purposefulness; financing to the extent of performance of works, services; compliance with financial discipline.

The principle of purposefulness consolidates the position according to which all expenses have a substantive purposeful purpose: salaries, business trips, scholarships, operating expenses, etc.

Financing to the extent of the performance of works and services means that funds are allocated in accordance with the actual performance of works and services, their quantitative and qualitative indicators.

Compliance with financial discipline is a condition for the correct and legal spending of funds:

Financing in the Russian Federation comes in two forms:

Financing of state unitary enterprises;
- financing of state budgetary institutions.

Financing of state unitary enterprises. Unitary enterprises are created by decision of authorized state bodies and local self-government bodies. Unitary Enterprises are not endowed with ownership of the property assigned to them. Financing of expenses of unitary enterprises can be carried out only for purposes determined by law: expenses for the rehabilitation of unprofitable coal mines, conversion of the defense industry, etc. Financing of federal state-owned enterprises is carried out both for expenses on current activities and for investments.

Financing of state budgetary institutions has its own characteristics. These institutions belong to the non-production sphere, they do not directly participate in the creation of material values and do not create national income. Their main purpose is to meet the social and social needs of society. Such institutions and organizations include social and cultural institutions, government and defense bodies of the country, which are subject to budgetary funding.

Sources of financing:

1. Property / funds transferred by the decision of the government, for the establishment of this enterprise and the introduction of the main activities.
2. Funds received from real products / works and services produced in accordance with the state order.
3. Funds allocated in accordance with the established procedure from the budget and extra-budgetary funds.
4. Income received as a result of conducting independent economic activities can only be used for production needs.

All profits are transferred to the budget.

Financing of social and cultural events. This is a kind of estimated funding, which includes spending on culture, education, art. Mass media, health care, sports and solving problems of social policy.

Sources of asset financing

According to the sources of formation, financial resources (liabilities) are divided into:

1) formed at the expense of own and equivalent funds (share capital, share contributions, profit from core activities, earmarked receipts, etc.);
2) mobilized in financial markets as a result of operations with securities, loan operations, etc .;
3) arriving in the order of redistribution (budget subsidies, subventions, insurance compensation, etc.).

More generally, the sources of financial resources can be divided into three large groups.

The company's own funds consist of:

1) Authorized capital - the amount of funds provided by the owners to ensure the statutory activities of the enterprise.

Depending on the organizational and legal form of the enterprise, the authorized capital can be understood as:

State enterprise - the value appraisal of the property assigned by the state to the enterprise on the basis of full economic control;
- limited liability partnership - soum - shares of owners;
- joint stock company - the aggregate par value of all types of shares;
- production cooperative - the value appraisal of the property provided by the participants for the conduct of activities;
- leased enterprise - the sum of the contributions of the employees of the enterprise.

Contribution to the authorized capital can be made in the form of cash, tangible and intangible assets. At the time of the transfer of assets in the form of a contribution to the authorized capital, the ownership of them is transferred to the economic entity. Thus, in the event of the liquidation of the enterprise or the withdrawal of a participant from the company or partnership, he has the right only to compensation for his share within the residual property, but not to return the objects transferred to him in due time in the form of a contribution to the authorized capital. Consequently, the authorized capital reflects the amount of the company's obligations to investors. The amount of the authorized capital is announced during the registration of the enterprise, and any adjustments to it are only in the cases and in the manner provided for by the current legislation and constituent documents.

2) Profit - the main source of funds for the enterprise. The amount of profit remaining at the disposal of the enterprise depends primarily on the ratio of its income and expenses.

3) Reserve capital (fund) - intended to compensate for unforeseen losses and possible losses from economic activities. The source of the fund is profit. The formation procedure is determined by the regulatory documents governing the activities of an enterprise of this type, as well as its statutory documents.

4) Additional capital - formed as a result of revaluation of fixed assets and other material assets, when shares are sold at a price higher than par, budget appropriations to finance long-term investments. It is prohibited to use it for consumption purposes.

5) Accumulation Fund - intended to finance capital investments. The source is net income.

And other special funds.

The company's borrowed funds consist of:

1) long-term loans and borrowings. The following types of loans can be used to finance the activities of an enterprise:
- bank - provided in the form of cash loans by bank credit institutions;
- budgetary - provided if there are certain grounds at the expense of budgetary funds, as a rule, on preferential terms;
- commercial - deferred payment for shipped material values;
- tax - changing the deadline for paying tax if there are certain grounds provided for by law. For example, causing significant material damage to a taxpayer.

An investment tax credit is such a change in the due date for the payment of tax, in which an organization, if there are appropriate grounds, is given the opportunity to reduce its tax payments within a certain period and within certain limits.

2) bond loan - the issue of debt securities (bonds), as a rule, of a targeted nature.

Raised funds of an enterprise are funds that do not yet or do not belong to the enterprise. For example, accounts payable.

The regularity of financing the activities of the enterprise is such that fixed assets are financed at the expense of long-term liabilities, and circulating assets at the expense of short-term liabilities.

Funding sources of funds

The fixed assets of an enterprise are a set of material assets produced by social labor, used in unchanged natural form for a long period of time (more than 12 months) and losing their value in parts. Financial resources intended for investment in fixed assets are called fixed assets or fixed capital of the enterprise, and it is its value that is reflected in the financial statements.

Fixed assets include buildings (architectural and construction objects designed to create working conditions - residential buildings, buildings, garages, salaries), structures (engineering and construction objects intended for the implementation of the production process and not related to changes in objects of labor - mines, bridges , roads, wells), transfer devices (designed to transfer various types of energy, liquid and gaseous substances), machinery and equipment (designed to influence the subject of labor, or to move it), vehicles, tools, perennial plantations, draft animals and etc.

Production fixed assets are directly or indirectly involved in the production of material values. Non-production fixed assets are not associated with the implementation of the statutory activities of the enterprise and include residential buildings, clubs, sanatoriums, kindergartens. Distinguish between active and passive fixed assets. The active part of the funds directly participates in the production process, while the passive ones (for example, buildings, structures) do not directly participate in the processing and movement of materials, but create the conditions necessary for production.

The structure of fixed assets is different and depends on the industry affiliation of the economic entity. So in mechanical engineering, metallurgy, the chemical industry, machinery and equipment occupy a leading place, in the energy and fuel industry - structures and transmission devices, in the light industry - buildings, in agriculture - perennial plantings and livestock.

Fixed assets have the following types of monetary value:

The initial cost at which they are accepted for accounting;
- the replacement value that they have during the reproduction period, taking into account obsolescence and revaluation;
- residual value, which is the original or replacement cost less depreciation.

The initial cost of fixed assets acquired for a fee is the sum of the actual costs of the enterprise for their acquisition, construction and manufacture, excluding VAT and other reimbursable taxes. The value of funds received under a donation agreement and in other cases of gratuitous receipt is their market price.

Changes in the original cost are not allowed, except only in cases of completion, retrofitting, reconstruction and partial liquidation of funds. The company has the right not more than once a year to revalue fixed assets at replacement cost by indexing or direct recalculation at documented market prices. The need for revaluation is explained by the fact that with a change in the selling prices for means of production, estimated prices and tariffs in construction, as well as in connection with a change in the cost of reproduction of fixed assets, an incomparability of existing and newly introduced fixed assets arises, which makes it difficult to determine the efficiency of their use, as well as the volume and capital investment structures.

The efficiency of using fixed assets is characterized by indicators of capital productivity (the ratio of sales to the average annual cost of fixed assets), capital intensity (the inverse indicator of capital productivity), capital-labor ratio (the cost of fixed assets per employee).

The process of reproduction of fixed assets of an enterprise is carried out through capital investments. The concept of "capital investment" is identical to the concept of direct or real investment. It is possible both simple (in unchanged, in comparison with the previous period, volumes of financial investments) and extended (in volumes exceeding the volumes of the previous period) reproduction of funds.

Investments are financed by:

Own financial resources and internal reserves of the enterprise;
- borrowed money;
- funds received from the issue of securities, shares and other contributions of legal entities and individuals;
- funds received by way of redistribution from centralized investment funds, concerns, associations and other associations;
- budgetary allocations;
- funds of foreign investors.

The planning of funding sources is carried out on the basis of the estimated cost of the planned construction and with the determination of own funds.

Own financial resources - includes the initial contributions of the founders and part of the funds received by the company from economic activities. Own sources are subdivided into two groups: 1) sources formed from carrying out work in an economic way and 2) sources from the results of the main activity.

Sources generated from carrying out work in an economic way (in the case when construction departments are created at the enterprise itself and workers are attracted for them, a production base is formed) include the mobilization (immobilization) of internal resources, profit on capital work, savings from reducing the cost of work carried out, savings from lower prices for equipment, etc.

To carry out construction and installation work in an economic way, the enterprise must provide its own construction departments with a certain amount of working capital, which is formed from the financial resources allocated for this construction. When the production program increases, the plans provide for immobilization, i.e. the use of a certain amount to increase working capital in construction. If the program is reduced, then immobilization is planned, i.e. use of the released working capital to finance construction.

The calculation is made according to the formula:

M = (He-Ok) - (Kn-Kk);
where M is the mobilization (immobilization) of internal resources in construction;
He is the expected actual availability of current assets of the construction site at the beginning of the year;
Ok - the planned need for working capital at the end of the planning period;
Кн - the expected actual accounts payable of the construction site at the beginning of the year;
Кк - stable accounts payable at the end of the planning period.

A positive result means the mobilization of internal resources, which reduces the need for construction resources in the planned year and allows this amount to be taken into account as a source of financing for capital investments. If immobilization (negative result), then there is a planned increase in the need for working capital, which increases the company's costs of capital investments and is reflected in the expenditure side of the plan.

Profit from capital work carried out by economic means is planned in the amount of about 10% of the estimated cost of construction and installation work, and is taken into account in sources of financing.

Savings from reducing the cost of construction and installation work are formed as a result of measures that reduce the cost of construction. It is established as a percentage of the estimated cost of work or on the basis of a plan of organizational and technical measures.

Savings from a decrease in equipment prices are determined by a direct count based on their emerging dynamics.

Other sources include income from incidental mining, which are at the disposal of the customer, depreciation charges for construction equipment when performing work in an economic way.

Own sources also include depreciation charges and profit from the main activities of the enterprise (a specific amount of resources allocated in the form of investments in fixed assets is established when it is allocated financially).

Borrowed funds are mainly represented by long-term bank loans, borrowed funds provided by other enterprises and individual investors (individuals).

Bank loans are provided on the basis of a loan agreement. The loan is issued on the terms of urgency, payment, repayment, security (under guarantees, secured by real estate, other assets). Before issuing a loan, the bank assesses the creditworthiness of the enterprise, studies the feasibility study of the loaned event. In the future, the bank monitors the progress of the credited event and in case of violation of the terms of the agreement, it can apply financial sanctions.

Loans from the federal and regional budgets are placed on a competitive basis and involve the financing of fast-payback commercial projects or to finance socially significant events implemented by an economic entity.

A specific form of financing is leasing, which allows you to reduce the level of equity capital in sources of investment financing.

Small businesses can use an investment tax credit - funds left to businesses in connection with the provision of a fringe for tax payments if the latter are reinvested in production.

Foreign investments have enormous potential, which can be carried out through direct investments and the creation of joint ventures.

Financing of non-production capital investments can be carried out at the expense of the enterprise's profit, funds from other enterprises attracted on a share basis, and budgetary allocations.

Types of funding sources

Business is a type of economic activity of people, consisting in the commission of commercial transactions based on the sale and purchase, the main purpose of which is to generate income and personal gain. There are different forms of doing business: an individual enterprise or a legal entity.

So, sources of financing for a business are expected or already existing cash flows. Sources of financing are divided into internal - sources belonging directly to the firm or entrepreneur, and external - coming at the disposal of the entrepreneur, so to speak, from outside.

The financing strategy of the project consists in the application in a certain sequence of financing schemes based on individual characteristics the project and the factors influencing it.

There are the following main types of financing strategies, depending on the funding sources:

1. Financing from internal sources.
2. Financing from borrowed funds.
3. Financing from borrowed funds.
4. Mixed (complex, combined) financing.

Internal sources are the company's own funds - profit and depreciation charges.

Reinvestment of profits is a more acceptable and relatively cheap form of financing an enterprise that is expanding its activities.

Features of external sources:

1. Attracted investments:
the investor is interested in high profits and the company itself;
the investor may or may not have the intention of ever getting rid of the investment;
the investor's share of ownership is determined from the ratio of his investments to the total capital of the company.
2. Loan investments:
the company receives a contractual obligation to return the loan amount;
the loan must be repaid in accordance with the terms on which it was received;
the company pays interest on the loan received;
the company provides guarantees that are necessary and acceptable to the lender (possibly the personal property of the owners);
if the loan is not repaid according to the agreed schedule, then the lender can withdraw the guarantees;
after the return of the loan amount, the obligations to the lender are terminated.

When implementing a financing strategy, the following financial instruments (financing schemes) can be used in combination, providing funds from various sources:

Sale of a share to a financial investor;
sale of a stake to a strategic investor;
venture funding;
public offering of securities (IPO);
closed (private) placement of securities;
access to Western financial markets (depositary receipts);
bank loans, lines of credit, loans;
commercial (commodity) credit;
government loan (investment tax credit);
bond loan;
project financing;
export insurance;
leasing;
franchising;
factoring;
forfaiting;
grants and charitable contributions;
research and development agreement;
government funding;
issue of a bill;
offsetting;
barter;
other.

The most typical financial instruments for Russia are discussed below.

There are two types of equity investors.

Financial type investor:

Strives to maximize the value of the company, has only a financial interest - to get the greatest profit mainly at the moment of exiting the project;
does not seek to acquire a controlling stake;
does not seek to change the management of the company;
prefers investment horizon - 4-6 years;
usually secures its control by participating in the Board of Directors.

In Russia, financial investors are represented by investment companies and funds, venture capital funds.

Strategic investor:

Seeks to obtain additional benefits for its main activity;
strives for complete control, sometimes at the cost of destroying the company;
actively participates in the management of the company;
mainly seeks to invest in companies from related industries;
The investor's “participation” is often not limited to specific terms.

At the same time, the company receiving the investment can also receive additional benefits (for example, in the form of guaranteed supplies and sales, personnel, know-how, logistics chains, etc.). In Russia, strategic investors are mainly represented by large multinational companies interested in gaining full control over the business.

Consignment is usually used for the sale of new, atypical goods, the demand for which is difficult to predict. Traders do not want to take risks and therefore only offer suppliers such working conditions. For example, when selling new textbooks to institutes, book publishers send their books to retail outlets on condition that they be returned if they are not purchased. Sometimes this approach is also referred to as “giving goods for sale”.

Managers responsible for transactions on the terms of a commercial loan are required to carefully monitor the totals of accounts receivable. Competent managers are always looking for ways to meet their clients' loan needs, while achieving their own goals and fulfilling the responsibility of maintaining the flow of cash to the company.

A large company can have thousands of clients. It is impossible to control the debt of each customer, so the accounts receivable control system must be designed to enable the manager to calculate the compliance of the balance of the receivables with the credit conditions of the corporation and automatically show customers with a critical mismatch.

There are the following main methods of control over accounts receivable:

1. Aging graph;
2. Days of unpaid sales;
3. Matrix of residuals.
Providing a commercial loan is always associated with the risk of non-payment. It is good if payments are made in full and on time, but this is usually not the case. Therefore, it is important to properly organize the procedure for receiving money on accounts payable, especially in case of delay in payment.

There are several approaches to debt collection:

1. Reminder by letter. The approach is applied even for non-overdue debts in order to remind the buyer that the supplier remembers him and controls the payment of the debt. It is recommended to send a letter to the client no later than 10 days before the due date. Such a message can be printed on the next invoice. The letter reminds of the terms and the amount (share) of the balances to be paid.
2. Clarification of the reasons for the offense. If the debt remains unpaid on time, it is useful to contact or personally meet with the client in order to find out exactly the cause of the offense. It is necessary to understand as soon as possible whether the delay in payment is caused by problems related to the delivery of goods (for example, quality, assortment), controversial issues regarding the provided payment documents, or financial difficulties of the client. After finding out the reason for the delay in payment, a decision should be made: whether to expect the client to repay the debt, to apply pressure to the client in order to obtain payment of the debt, or to recognize the debt as hopeless.
3. Situation of non-payment in case of a discount. Sometimes a situation arises when a customer who is eligible for a discount unexpectedly does not pay during the grace period. In this case, it is necessary to demand payment of the full amount of the invoice. However, if this case is rather an exception, and the client is very important to the company, you can ignore this and not spoil the relationship. The most flexible way to solve the problem would be to allow the client to keep the discount even in case of late payment during the grace period, if the client agrees to pay the next invoice ahead of schedule.
4. Minimization of expenses for collection of debts and bad debts. When collecting overdue debts, it should be borne in mind that the process of collecting funds can be expensive for the seller, both due to direct costs associated with it, and due to damaged relationships with customers. Therefore, it is necessary to assess the level of costs associated with debt collection, to avoid excessive costs that do not justify the result. As a goal, it is desirable to prevent an unreasonable delay in the monetary cycle and reduce to zero the level of uncollected funds. In the event of a balance of uncollected funds, the collection costs of which are estimated to be high, the bad debts should be written off. In practice, there is always a share of such debt in the total amount of receivables, and managers need to strive to minimize it.

GDR - Global Depositary Receipts, focused on circulation in the global financial markets.

Project financing is a set of activities aimed at raising funds and other material resources for the assets and cash flows of the company.

Project financing is a relatively young and promising complex financial instrument, which has the following features:

1. The object of investing funds of investors is a specific investment project, and not in general the production and economic activities of the company - the recipient of the funds. Often, a separate so-called project company is created to receive and use project financing.
2. The source of return on invested funds is the profit from the implementation of the investment project (separated from the financial results of the activities of the initiators of the projects).
3. Within the framework of the financing complex, various sources and forms of financing can be used (credit, financial leasing, the acquisition by the bank of a share in the authorized capital of the project initiator, the establishment of a new special company with the equity participation of the project initiator, the bank and attracted co-investors, the issuance of targeted bond loans, etc.). etc.).
4. The absence of a guarantee instrument typical for banks (this does not exclude the receipt of a number of guarantees at different stages of the project), the main guarantee is the future cash flow.

The following guarantees can be used for project financing for investors:

Pledges of all cash receipts of the project company in favor of creditors;
project management agreement to ensure proper operation;
the creditor's right to enter into the most significant contracts and rights under the project;
guaranteed contracts for the supply of raw materials;
guaranteed sales contracts;
contracts for technical support and preventive maintenance;
package of insurance guarantees;
concession / transfer agreement;
possible state investment incentives (preferential taxation, exemption from import duties);
mechanisms to eliminate the risks of currency conversion and transfer.

The following guarantees can be used to ensure full financing of the project:

Legal guarantees;
reserve funds;
pledges, deposits in special accounts;
bank guarantees and sureties;
standby support loans;
fixed price contracts;
bank accounts with special treatment (including letters of credit);
obligations of the founders (sponsors) for additional contributions to the capital of the project company;
insurance of loans against the risk of non-repayment, project assets and cargo against the risk of loss, insurance of profits, liability of project developers, construction and other risks;
hedging.

Sources of funding for institutions

The education system is going through a very difficult period now. It is characterized by the destruction of old principles economic support activities of educational institutions and the formation of a new funding model. The old has been destroyed, but the new is still being established. Legislative acts have not been worked out. There is still no clear-cut delineation of powers between federal executive authorities and authorities in republics, territories, regions, as well as local self-government bodies. The budgetary system of the Russian Federation is undergoing changes.

The problem of attracting additional sources of financing is becoming more and more urgent, among which is attracting funds from the provision of paid additional services for the purpose of social protection of employees and improving the material and technical base. The market for paid educational services is designed to satisfy not only the state order, provided by budget allocations, but also the social order of various groups of the population.

Budget organizations can be classified according to a number of characteristics.

Depending on the source of funding budgetary organizations can be divided into the following groups:

Funded from the federal budget;
financed from the budgets of the constituent entities of the Russian Federation;
financed from local budgets.

By sources of funding, budgetary organizations can be divided into two groups:

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Funding sources are existing or anticipated ways of obtaining funds. The article presents the most common sources of business financing, their advantages and disadvantages.

One of the main functions of the CFO is to find resources to finance operating and investment activities. An effective top manager always considers the full range of possible sources of raising funds and selects the most profitable one. Let's consider the most common sources of funding, assess the pros and cons of their use.

What are funding sources

Sources of financing are the existing and expected channels for obtaining funds that the company will spend on capital investments: the purchase of fixed assets, reconstruction, modernization, construction.

According to the direction of origin, funding sources are divided into internal and external. Internal sources of financing are the mobilization of the company's own financial resources, the optimal use of reserves and earned profits. External - this is the money attracted by the enterprise from the external environment.

It is clear that the use of internal sources of financing is cheaper and safer for the financial stability of the enterprise than attracting external ones. But not always an enterprise can fully ensure its functioning independently, especially when it comes to capital-intensive industries. Moreover, focusing on the maximum use of internal resources will not always be the right decision for a CFO.

Download and take to work:

How will help: to understand from which sources the funds are attracted, and to control their receipt.

How will help : to approve uniform rules for investment management. The document sets out the procedure for justifying and agreeing on new projects being implemented in the company. All sources of funding for the project are listed. For example, ruble or foreign currency bank loans, interest-bearing and interest-free loans of the group's companies, own funds.

Internal sources of funding for the organization: pros and cons

To understand the advantages and disadvantages of using certain sources of financing for the activities of an enterprise, we will consider each of them in more detail.

Net profit

At first glance, the most logical own source of financing for the company's activities is net profit. Arguments for use of net profit to finance investments will be:

No interest burden on the use of net income for investment.
Reducing the tax burden on business.

But there is one significant disadvantage in the use of net profit. The main purpose of the enterprise is to increase the dividends of its owners. The more profit is directed to investment, the lower the share of dividends will be. In this situation, there is no unambiguously correct decision, but there are three areas of dividend policy, one of which your company can adhere to.

The first area is called the “Model of the residual principle of dividend payment”. It is based on the fact that the total amount of dividends does not affect the market value of the company, and therefore the investment interests of the company are more important than the interests of its shareholders.

The second area is called "The active role of dividends in creating company value" and is based on the fact that amount of dividends paid directly affects the value of the shares.

The third area is called "Model of tax differentiation" and has the main goal of optimizing income tax, regardless of the proportions of distribution of investments and dividends.

How will help: calculate the maximum amount of borrowed funds for the successful business of the company.

How will help: to assess the degree of independence of the company from external sources of funding.

Depreciation deductions

The second most important internal source of business financing. The advantage of depreciation deductions, as a source of investment, in comparison with others, is that in any financial situation, this source always remains at the disposal of the enterprise. In order to make full use of the potential of depreciation deductions, it is necessary to develop an optimal depreciation policy, which will consist of:

The choice of the useful life of the OS.
The choice of the method of depreciation of fixed assets.
Annual revaluation of fixed assets.
Overhaul OS.
Reconstruction and modernization of the OS.

Thanks to a correctly chosen depreciation policy, leading enterprises refinance up to 80% of fixed assets using depreciation deductions.

Accounts payable management

Provisions for future expenses

Provisions for future expenses can also be used as sources of funding. Such provisions are created for future liabilities and provide an economically justified even distribution of costs over time. A competent CFO will be able to structure the management of reserves in such a way that the company will be able to use the unobligated balance of funds for some time to finance its current activities.

The disadvantages of this method can be called only the legislative limitation of the amounts that can be recognized as reserves, and increased control of inspection services.

revenue of the future periods

Deferred income is a great way to get financing without outsourcing. But, unfortunately, it is not available to everyone. The most common deferred incomes are government and non-government earmarked funding and different kinds prepayments and security payments.

More on the topic:

How will help: to form such a capital structure and funding sources that will be optimal for your company in a given period of time.

How will help: choose from several projects the one in which it is more profitable to invest money.

External sources of company financing: advantages and disadvantages

External sources of financing for an enterprise are usually divided into debt and equity.

Debt financing is repayable financing on a repayable basis. The main areas of debt financing are: obtaining a loan, leasing, debt securities.

Credit

Credit - this is the most common method of investing in fixed assets, long-term loans are used - short-term, including overdraft ( see what an offer is ) and factoring. The advantages of using a loan include:

the relative simplicity of its attraction;
the presence (often) of one creditor, which entails ease of maintenance;
reduced rates with subsidies and / or good credit ratings.

The disadvantages of the loan are:

comparative high cost of use;
requirements of banks to provide guarantees and collateral;
difficulty in obtaining a loan at the start of a business.

Leasing

Debt securities

These are mainly bonds, certificates and bills. They represent an alternative to a bank loan, convenient for both the investor and the borrower.

A bond is a security issued by a debtor for a strictly defined period of time, after which it must be redeemed. The coupon serves as the yield on the bond.

conclusions

As with any financial management issue, there is no uniquely right fundraising strategy. For each enterprise and for each market condition, this strategy must be re-created, based on the principles of maximizing the company's value and competition policy.

An example is Uber, which, while remaining a private company, has already attracted more than $ 15 billion in investments and continues to organize new rounds. Why does she need such an aggressive funding policy? Not because she really lacks resources, but because she chose a strategy of violent expansion and suppression of competitors, by any means. Experience shows that Uber has been successfully implementing this strategy so far.

As a counterexample, Google has increased its cost of capital since its IPO more than 100 times. For her, increasing equity capital has become a strategy of success, as for Sberbank, whose shares have risen in price more than 1000 times.

In the economy, the sources of the formation of material investments are usually divided into two main categories: internal and external sources of investment. In the macroeconomic sense, domestic sources are represented in the form of national resources, it can be the capital of enterprises, budgetary allocations. External sources include, respectively, foreign investment, loans and other borrowed funds.

It is customary to divide investments into the same categories in microeconomics, but their nature is somewhat different. When it comes to individual enterprises and investment projects, we distinguish other sources and methods of investment in these categories. It is customary to refer to internal profits of the enterprise, the capital of the holders of shares in the enterprise and depreciation costs (gross investment). The external ones include borrowed capital, government subsidies, money drawn from working with the stock exchange, and leasing investments.

Simply put, the names of these two categories should be taken literally. Internal sources of financial investments include the investor's own funds, and external sources - all the rest. Much easier, isn't it? In microeconomics, the categorization is even more detailed. What are the sources of investment financing? There are three main groups: own, borrowed and borrowed.

There are a variety of forms of investment that belong to one group or another, depending on the nature of their origin. These groups should also be divided into internal (own) and external (borrowed and borrowed). The proportionality of the shares of various groups of investments in fixed assets of companies depends on the specifics of the national economy.

In Russia, most of the capital is raised funds in the form of government subsidies and subsidies. In the USA and England, most of the funds are the fixed assets of the companies themselves. In actively developing countries with a constantly growing economy (Korea, Japan, Germany), the overwhelming part of the capital of companies is attracted and borrowed funds, most often in the form of foreign investments.

2 Internal sources of funding

As we have already said, internal sources for financing investments are the company's own funds and the money of the owners of the enterprise. Own sources of formation of financial investments:

the profit of the enterprise;
depreciation costs;
reinvested non-current assets;
reinvested part of current assets.

An enterprise's net profit accounts for the largest portion of the induced or variable investment of enterprises. The total amount of induced investments consists of reinvested non-current assets and part of the profits of the enterprise, which it is ready to use to implement its own investment policy. The proportion of profits channeled back to fixed assets depends on the marginal propensity to invest.

Depreciation expenses and the part of current assets immobilized in the form of investments are most often the company's autonomous investments. All depreciation costs are essentially the gross investment of the company. Finding the optimal balance between internal sources of finance is one of the most important tasks facing the company's management. In theory, a company can successfully participate in a market economy and bring an acceptable profit even if it completely refuses to reinvest the income earned in the course of commercial activities. In practice, the growth of an enterprise and business expansion is impossible without the involvement of large capital.

Internal sources for financing investments are the most important resource of the enterprise, and without them its development is not possible. A company without these resources completely loses its market potential, more often than not, it becomes bankrupt. Lack of profit, lack of circulating assets - these are symptoms of a dying enterprise, in which a private investor interested in receiving dividends will not invest their money.

Simply put, in the absence of internal sources of investment, it becomes problematic to attract money from outside.

3 Investments from external sources

External sources include sources of financing for investments that come to the enterprise from outside and are not part of the fixed capital or capital of the owners of the enterprise. We have already said above that these sources can be borrowed and attracted. Let's start with the latter. Attracted sources of money for the formation of investments:

issue of securities issued by the company;
contributions to the authorized capital in the form of real investments from outside;
government subsidies, subsidies, grants;
targeted gratuitous investment from commercial organizations.

Any company that sets itself the goal of expanding its presence in the market is constantly raising money from outside. The fact is that borrowed and attracted capital is cheaper, and enterprises are trying to increase their own assets by issuing securities on the stock exchange and looking for private investors interested in profitable capital allocation.

Companies are also actively involved in government programs. Government grants and subsidies are often provided free of charge with the expectation of improving the situation in the entire industry, and therefore enterprises are interested in obtaining such financial doping. Companies do not miss the opportunity to participate in various innovative projects to receive targeted grants.

The role of private and public investment cannot be underestimated. It is thanks to the activity of capitalists that venture investments have become a significant part of the modern economy and have allowed giant corporations to enter the market with innovative products. Use the developers of the revolutionary software and the latest high-tech products own sources of investment, the modern economy would look completely different.

There are other external sources of investment financing, they are called borrowed. Borrowed funds represent:

loans;
issue of debt obligations (bonds) of the enterprise;
government credit initiatives;
leasing.

Loans can often be the only way to get the money you need to develop. Large financial institutions often provide huge loans to companies that simply cannot meet domestic investment demand by raising funds from private investors. An example is the company's initiative Marvel, which entered into an agreement for a period of 7 years with a financial conglomerate Merill Lynch & Co.

The loan amount was $ 525 million. Find a similar amount by selling securities or without selling a huge share of the company owners Marvel just couldn't. The state would also not finance such an initiative by providing a loan.

Issuing company bonds on the stock market is also one of the ways to quickly find money, which is suitable for large companies looking for immediate funding. The concept of leasing has recently become more and more popular in Russia. Investment leasing and leasing of material assets are sources of formation of material investments. Industrial equipment and real estate are provided on the basis of leasing.

4 Borrowed and attracted investments - the main characteristics

Attracted investments in the form of money masses obtained through redemption by the population or other commercial structures of shares have some economic characteristics:

the complexity of the sale of securities on the stock exchange;
mandatory full payment of the authorized capital;
issue shares only joint stock companies closed and open type;
need to pay dividends.

Leveraged investments can be more attractive for businesses that have a strong financial position. For these companies, the borrowed capital will be cheaper than the one attracted in long term... The characteristics possessed by borrowed investments include:

the need to provide security for a loan;
the possibility of obtaining a lease or a loan is available only to companies with good financial performance;
the need to pay discounts on bonds and interest on loans.

The critical difference between the two groups of investments can be called the difference in the conditions of work with one or another source. Any company can use borrowed funds, but only joint-stock companies can raise funds from outside directly into fixed capital. For some enterprises, this is an undoubted advantage, for others, an increase in the number of shareholders does not seem to be the most profitable prospect.

5 Indirect sources of investment

The company may also be interested in sources that are called indirect. There are three main types of such sources: leasing, franchising and factoring. Leasing can be conditionally attributed to borrowed sources, but often enough boundaries can be drawn between leasing and credit to distinguish leasing into a qualitatively different category of investment.

What is leasing? In fact, this is the provision by the lessor of property (industrial equipment, raw materials) for temporary use for a certain fee to the lessee until he buys it from the actual seller. Three parties are traditionally involved in a lease agreement: the lessor, the lessee, and the seller. This scheme is somewhat different from a debt contract.

Franchising is the transfer of intellectual property from a copyright holder to an enterprise for a conditional payment. This form of indirect investment has allowed many companies to strengthen their market position. The McDonalds chain can be considered the clearest example in the Russian economy. A large restaurant is transferring the rights to use its trademarks under a franchise scheme and thus invests in the Russian economy.

Factoring is a more complex scheme for the implementation of an enterprise's receivables. In this case, we are talking about the actual sale of the receivable debt to the factor company.

Indirect sources of investment financing do not have a critical impact on the financial performance of an enterprise and CWP in a macroeconomic sense, but they are still important factors that must be taken into account when analyzing certain companies that can be successful without attracting large external sources of investment, but taking into account the use of indirect sources of investment and competent management of internal resources.

6 Position of an independent investor

Private investors often wonder where to invest their money. As you may have gathered from the above, external investment is of the greatest importance to the enterprise and can be a decisive factor in the process of its expansion or restructuring. Many companies would not have been able to receive financial incentive from the outside if the telecommunications infrastructure had not developed to the level at which it is today over the past twenty years.

Previously, trust funds and brokers raised funds for trading on stock exchanges by contacting citizens by phone or mail. Raised money from outside, knocking on the doors of potential clients. Today, the Internet allows private holders of small capital to find the best ways to implement their own investment strategies, by comparing investment instruments with each other in real time, by passively monitoring the state of the market.

The investor can be presented with a variety of ways to place capital. By buying back bonds, private investors can be active lenders of businesses. When buying shares to receive dividends, the investor uses his savings as a source of investment, which becomes external to the company that places its securities on the stock exchange, thus trying to attract additional finance to the fixed capital.

The modern Internet infrastructure allows ordinary people to act as a source of investment for an enterprise.