Own sources of financing of the enterprise. Sources of enterprise financing

1. Sources of financing.

It can be:

Own money or money of partners;
money received from the sale of shares;
the profit generated by the company's activities.

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 shares, make appropriate advertising for them, register a company, rent office space. Or: the company operates and makes a profit; At some point, the owners decide to expand the business, but profits alone are not enough to finance this endeavor.

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 company.

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

Since D = C x K and C = C/unit x K, where “D” is the company’s income (in our case, revenue from product sales); "C" - product price; "K" - the volume of its sales; “C/unit” is the cost per unit of production, we can write the following formula: P = K(C-C/unit).

Now it’s not difficult to figure out what the size of a company’s profit depends on:

Firstly, from the prices of its goods "Ts". At constant costs and a given volume of product sales, profit grows with rising prices.
Secondly, from the cost per unit of production - “C/unit”. For a given sales volume and price, a reduction in the cost per unit of product leads to an increase in profit.
Thirdly, from the volume of product sales - “K”. You can achieve profit growth without changing the price and cost per unit of product, but by increasing the volume of production and sales of goods.

2.2 Gross and residual profit.

The value “P” in the formula P = D - C (3) is called gross or total profit by economists. Part of this profit will go to pay taxes to the state. Some amount may be paid to the bank in the form of interest.

The amount that remains after we subtract all the listed amounts from the gross profit “P” is called residual, or net profit. It can be used to finance a business: the construction of new buildings or the reconstruction of old ones, the purchase of new machines, equipment, computers, or even a series of scientific research. Shareholders receive their dividends from it (if we are talking about a joint stock company). The entrepreneur can spend part of the residual profit on stimulating employees by paying them bonuses in addition to 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 Inventory problem.

Managing residual profits wisely is an important task for an entrepreneur. Using the example of a store, you can see that the higher the turnover rate, the higher the profit. On the other hand, the company has to purchase goods for sale more often. A manager may have an idea to increase inventories - expand warehouses, purchase warehouse equipment, spending part of the profit on this. This may be useful for business, but it should be remembered that money invested in inventories falls out of circulation while the goods are stored and, therefore, does not bring profit.

There is always a risk that inventory will remain unsold and the company will lose on this - the larger the inventory, the greater the risk. Therefore, the manager can be more forward-thinking, maintaining inventories at the minimum required level, and invite the owners of the company to spend this amount on other purposes, for example, on conducting market research.

3. External sources of financing.

3.1. Other companies. A firm short of funds can find partners who have the same problems. By creating a joint business, partners have the opportunity to expand their financial resources due to economies of scale.

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

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

Trade (or commodity) credit. It is provided to each other by the companies themselves in the form of sales of goods with deferred payment. Similar transactions are made between retail firms and the public. This is purchasing 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 government. This means that the state also owns the profits from their activities.

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

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

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

Sources of financing the budget deficit

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 funds raised. Loans from the Bank of Russia, as well as the acquisition by the Bank of Russia of debt obligations of the Russian Federation, constituent entities of the Russian Federation, and municipalities during their initial placement cannot be sources of financing the budget deficit.

Sources of financing the federal budget deficit are:

1) internal sources in the following forms:
- loans received by the Russian Federation from credit organizations in the currency of the Russian Federation;
- government loans carried out by issuing securities on behalf of the Russian Federation;
- proceeds from the sale of state-owned property;
- the amount of excess of income over expenses on state reserves and reserves;
- changes in fund balances in accounts for the accounting of federal budget funds;
2) external sources in the following forms:
- government loans made 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 may be internal sources in the following forms:

Government loans carried out by issuing securities on behalf of a constituent entity of the Russian Federation;
- budget loans and budget credits received from budgets of other levels of the budget system of the Russian Federation;
- proceeds from the sale of property owned by the state of a constituent entity of the Russian Federation;
- change in balances of funds in accounts for accounting for budget funds of a 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 organizations;
- budget loans and budget credits received from budgets of other levels of the budget system of the Russian Federation;
- proceeds from the sale of municipally owned property;
- changes in fund balances in local budget funds accounts.

The most important condition for financing (covering) budget deficits was government credit. State credit refers to 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.

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

In order to balance budgets, representative authorities can set limits on the budget deficit. If the maximum deficit level is exceeded, a mechanism for sequestering expenditures is introduced.

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

States cover the deficit mainly by issuing money and internal and external borrowing. However, the issue of money leads to inflation, rising prices for goods and services, which leads to a decrease in the living standards of the population.

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

A 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, and 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 an 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.

Financial resources of an enterprise are monetary incomes and receipts at the disposal of an economic entity and intended to fulfill financial obligations, carry out expenses for simple and expanded reproduction and economic stimulation 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, etc.

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

The authorized capital is formed during the initial investment of funds. Its value is announced upon 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 documents.

Among 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 activities, being its final result. In a competitive environment, the workforce is interested in profit growth, since it is a source of production growth, and, consequently, an increase in the well-being of the enterprise’s employees. However, such a source is not the entire gross profit received as a result of the economic activity of the enterprise, but only the part of it that remains after paying taxes and payments to the budget, called net profit.

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

A specific source of funds are funds for special purposes and targeted financing: gratuitously received values, as well as irrevocable and repayable government allocations to finance non-productive activities related to the maintenance of social, cultural and public utility facilities, to finance 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 identified as a result of revaluation, receipt of share premium (from an additional issue of shares, sale of shares above par value), gratuitous receipt of valuables or property from other enterprises and persons.

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

Debt financing is the provision of funds by lenders on the terms of repayment and payment.

Borrowed capital includes short-term and long-term borrowed funds and accounts payable.

Long-term borrowed funds are loans and borrowings received by an organization for a period of more than a year, the repayment period of which occurs no 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 are obligations whose repayment period does not exceed a year. Short-term loans and borrowings serve as a source of coverage (financing) of current assets.

Accounts payable arise in the settlement process for two reasons:

In purchase and sale transactions and contracts to suppliers and contractors (commodity credit), as well as on bills of exchange for payment and advances received;
in financial and distribution relations to the organization’s personnel, budget, extra-budgetary funds in case of violation of the terms of payment 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 raised funds within the current deadlines for payment of bills and obligations is legal.

Sources of financing activities

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

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

The concept of “financing” is quite closely related to the concept of “investing”; 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 an enterprise, it is necessary to solve five main problems:

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

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

Own capital includes:

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

By replenishing the enterprise's profits, its financial stability increases;
the formation and use of own funds is stable;
external financing costs (debt servicing to creditors) are minimized;
The process of making management decisions on the development of the enterprise is simplified, since the sources of covering 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 involves 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, as 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.

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

Financial balance is the ratio of the association's own and borrowed funds in which it is able to fully repay its previous and new debts using its own funds. The financial equilibrium point, calculated according to certain rules, does not allow the association of catering enterprises, on the one hand, to increase borrowed funds, and on the other hand, to irrationally use 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 is used to replenish property, then conducting an analysis of financial stability at each of these stages makes it possible to identify the conditions for strengthening or losing the financial balance of the enterprise association under study .

Internal sources of financing

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

Initial capital;
Finances accumulated during the operation of the enterprise, formed internal reserve funds;
Other investments of private and 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 to ensure the necessary operational scope. Such capital is also called authorized capital and without it the company will not only be able to be created, but also to fully function in the future.

The ways of forming such capital depend on the legal form of the 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 claim rights to them. Thus, in a situation when a company is liquidated or an 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 the goods and services requested by the consumer. He, in turn, pays for the final product, after which the invested funds are returned to the company’s accounts. Next, funds for the needs of the organization are deducted, and the remaining 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 legislative framework contains some procedures regulating profits, for example, the procedure for assessing asset depreciation and investments in statutory funds.

So, profit is the primary resource for cash reserves. Such funds are needed to cover sudden loss or damage, they provide some insurance against unforeseen circumstances. How to form a reserve is determined by the regulatory 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: wages paid in excess of the established one, bonuses, financial assistance, compensation for housing, meals, transport, and voluntary health insurance policies for employees.

In addition to such reserves, additional capital can also be included in the capital of an enterprise.

Its formation comes from various sources, such as:

Income from shares issued by the enterprise and sold at a high price;
Funds resulting from the revaluation of the enterprise’s own property;
Difference in exchange rates.

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

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

Both external and internal sources can also include targeted capital investments from the budget, from superiors and companies. Subsidies and subventions are especially highlighted.

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

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

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

Own sources of financing

Own sources of investment are the total value of the enterprise’s funds owned by it and ensuring its investment activities.

Own sources of investment financing include authorized capital, profit, depreciation charges, special funds formed from profits, 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, from the point of view of the method of attracting them, can be either internal (for example, profit, depreciation) or external (for example, additional placement of shares).

Amounts raised by the enterprise through these sources are not returned.

Authorized capital is the initial amount of funds provided by the owner to ensure the authorized activities of the enterprise.

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

It is formed during the initial investment of funds.

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

When it is created, the founders can invest both cash and tangible and intangible assets into the authorized capital of an enterprise.

Additional capital is a source of funds for an enterprise; 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 useful life of more than 12 months.

All types of fixed assets are subject to revaluation.

It may also include the amount of excess of the actual placement price of shares over their nominal value (share premium of the joint stock company).

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

Reserve capital can be used by decision of the meeting of shareholders to cover the losses of the enterprise, as well as to repay the company's bonds and repurchase its own shares in the absence of other funds. Reserve capital cannot be used for other purposes.

Net profit is the main form of income for an enterprise.

It is defined as the difference between revenue from sales 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 activity, implement projects, introduce new technologies, etc. Therefore, the need arises attracting own funds from external sources.

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

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

In general, an initial public offering of shares of an enterprise (Initial Public Offering - IPO) 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,” public placement means “the placement of securities through open subscription, including the placement of securities at auctions of stock exchanges and/or other organizers of trading on the securities market.”

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

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

1. At the first (preparatory) stage, the enterprise must develop a placement strategy, select a financial consultant, switch to international financial reporting standards, conduct an audit of 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, legal and financial due diligence procedures are carried out, as well as independent business assessment (due diligence).
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 placement price is determined.
4. At the final stage, the placement itself takes place, i.e., the company’s admission to the stock exchange and subscription to shares.

Financing 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;
shares do not have a fixed maturity date - they are permanent capital that is not subject to “return” or redemption;
conducting an IPO significantly increases the status of an enterprise as a borrower (the credit rating increases; according to experts, the cost of attracting loans and servicing debt decreases by 2-3% per annum); shares can also serve as collateral to secure debt;
circulation of company shares on stock exchanges provides owners with more flexible opportunities to exit the business;
the capitalization of the enterprise increases, a market assessment of its value is formed, and more favorable conditions are provided for attracting strategic investors;
the issue of shares creates a positive image of the enterprise in the business community, including the international one, etc.

The general disadvantages of financing by issuing ordinary shares include:

Granting the right to participate in the profits and management of the company to a larger number of owners;
the possibility of loss of control over the enterprise;
higher cost of capital raised compared to other sources;
the complexity of organizing and conducting the issue, significant costs for its preparation;
additional issue may be viewed by investors as a negative signal and lead to a fall in prices in the short term.

It should be noted that the manifestation of the listed shortcomings in the Russian Federation has its own specifics. In addition to them, the widespread practice of conducting IPOs by Russian enterprises is hampered by both external factors (underdevelopment of the stock market, peculiarities of legal regulation, availability of other sources of financing) and internal restrictions (unpreparedness of most enterprises for IPOs, 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 gap between the date of the decision to place 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 to ensure “transparency”. Disclosure of information during an IPO is required to a much greater extent than when obtaining various types of loans. At the same time, due to the established legal climate and established business practices (the predominance of closed transactions, “gray” payment schemes and tax optimization, opaque 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 using 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 justified business plan) and a corresponding management structure that allows you to achieve your goals, manage growth, control risks and use capital effectively. Only a few domestic enterprises meet these criteria.

Owners of Russian enterprises are frightened by the possibility of losing control over their business as a result of an 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 shareholders’ meeting, for example, the removal of the general director. With free circulation of shares, such a package can be consolidated within one day of exchange trading. Owners of 10% of voting shares already have the right to convene an extraordinary meeting of shareholders. Therefore, domestic businessmen prefer to independently search for a strategic investor who would agree to take part in the project by providing the necessary investments.

Owners of enterprises who nevertheless decide to carry out an IPO restructure the business in such a way as to reduce possible losses from the “erosion” of their stake and not lose control. After a public offering, many large shareholders retain a controlling interest.

Carrying out an IPO requires significant expenses. One-time costs for organizing an IPO, both direct (payment for the services of a financial consultant, underwriter, legal and auditing firms, exchange, registrar, marketing agencies, etc.) and indirect (costs for 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 over 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.

In general, at present it is more profitable for Russian enterprises to attract loans, which in the current conditions represent a cheaper, simpler and more effective way of raising capital.

Sources of funding for the organization

Based on the place of origin, the financial resources of an enterprise are classified into:

Internal financing;
external financing.

Internal financing involves the use of those financial resources, the sources of which are generated in the process of the financial and economic activities of the organization. Examples of such sources include net profit, depreciation, accounts payable, reserves for future expenses and payments, and deferred income.

External financing uses funds that come to the organization from the outside world. Sources of external financing can be founders, citizens, the state, financial and credit organizations, and non-financial organizations.

An organization's financial resources, unlike material and labor resources, are interchangeable and susceptible to inflation and devaluation.

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

The following sources of funding are distinguished:

Internal sources of the enterprise (net profit, depreciation, sale or rental of unused assets).
Raised funds (foreign investments).
Borrowed funds (loan, leasing, bills).
Mixed (complex, combined) financing.

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

As a rule, the more profits are used to expand business activities, the less the need for additional financing. The amount of retained earnings depends on the profitability of business operations, as well as on the dividend policy adopted by the enterprise.

The advantages of internal financing of an enterprise include the absence of additional costs associated with attracting 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 depreciation fund has lost its importance because depreciation rates for most types of equipment used at Russian industrial enterprises are too low and can no longer serve as a full-fledged source of financing, and the permitted accelerated depreciation methods cannot be used for existing equipment.

The second internal source of financing is the profit of the enterprise remaining after taxes. As practice shows, most enterprises do not have enough of their own internal resources to update 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 the owner of the enterprise has.

What remains is financing from borrowed funds, in which there is a choice 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 one has to take into account its own specific conditions.

Credit is a loan in monetary or commodity form provided by the lender to the borrower on the terms of repayment, most often with the borrower paying interest for using the loan. This form of financing is the most common.

Advantages of the loan:

The credit form of financing is characterized by greater independence in the use of received funds without any special conditions;
Most often, a loan is offered by a bank that services a specific enterprise, so the process of obtaining a loan becomes very quick.

The disadvantages of the loan include the following:

The loan term in rare cases exceeds 3 years, which is prohibitive for enterprises aimed at long-term profit;
To obtain a loan, an enterprise must provide 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 to the enterprise;
With this form of financing, an enterprise can use a standard depreciation scheme for purchased equipment, which obliges it to pay property taxes throughout the entire period of use.

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

Advantages of leasing:

Leasing involves 100% lending and does not require immediate payments. When using a conventional loan to purchase 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 begin implementing a large project.

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

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

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

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

Leasing payments paid by the enterprise are entirely attributed to production costs. If the property received under leasing is accounted for 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 cost and norms approved in the prescribed manner, increased by a factor not exceeding 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 completely

There are legal grounds to minimize taxation, and also to assign all costs of equipment maintenance to the lessor.

Budgetary sources of financing

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 credits received from budgets of other levels;
4) proceeds from the sale of state property (privatization);
5) balances of state stocks and reserves;
6) surpluses of previous years.

External sources of financing the budget deficit include:

1) government loans made in foreign currency through the issuance of 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 (GKOs) and federal loan bonds (OFZ). GKOs are short-term (up to 1 year) zero-coupon bonds, on which the payment of current interest income is not expected, and the discount is formed as the difference between the price of their placement (sale) and the redemption (redemption) price. OFZs are medium-term (from 1 to 5 years) and long-term (from 5 to 30 years) government obligations that require the payment of a fixed or variable coupon (interest).

This source of financing allows you to quickly and effectively solve the problem of budget deficit, however, it has a number of weaknesses:

First, it creates a so-called crowding-out effect, which means it pulls funds from the private sector that could otherwise be used as investments;
Secondly, the use of this method of financing the budget deficit accumulates public internal debt;
Thirdly, abuse of this method of financing the budget deficit can lead to default (inability to pay debts) like what happened in our country. In this case, the government paid off 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 was unable to pay income on securities at new rates, as well as to repurchase them in a timely manner, which caused a crisis in the entire Russian financial system.

The effectiveness of using the second method of financing the budget deficit depends on the power of the state's credit system. In our country, commercial banks do not yet have sufficient financial resources to solve this problem. In addition, the diversion of credit resources to the needs of the state reduces the investment activity of the private sector. The use of Central Bank funds to finance the budget deficit is prohibited by the Budget Code of the Russian Federation. This is largely due to the fact that the injection 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 conditions of rising inflation, the Oliver Tanzi effect occurs - taxpayers deliberately delay the deadlines for paying taxes to the state budget. Such a deferment provides a benefit to the taxpayer, since he will have to pay off tax arrears with cheaper money, and the gain in conditions of high inflation may exceed the amount of penalties and fines due to him in this case.

Budget 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.

Privatization of state property is an important source of financing the budget deficit. However, it should be taken into account that the Russian government can independently decide on the privatization of only small and medium-sized enterprises. The decision on the privatization of 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, for example, include Eurobonds (securities denominated in the currencies of European countries), OGVZ (government foreign currency loan bonds), OVGVZ (domestic government foreign currency loan bonds), etc.

It should, however, be taken into account that the ability to resort to external sources of financing the budget deficit is largely related to political factors. In addition, it depends on the total amount of a country's external debt and its ability to pay 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 borrowings increase not only the principal amount of the debt, but also the costs of servicing it (interest payments).

Sources of investment financing

Finding sources of investment financing has always been one of the most important problems in investment activity. In modern conditions for Russia this problem remains, perhaps, the most acute and relevant.

The system of financing the investment process consists of an 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 higher organization);
funds from budgets of various levels, etc.

The Decree of the Government of the Russian Federation “On approval of the Temporary Regulations on financing and lending of capital construction on the territory of the Russian Federation” No. 220 states that capital investments can be financed through:

The investor’s own financial resources and on-farm reserves (profits, depreciation charges, cash accumulations 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 financial resources of investors or funds transferred to them (bank and budget loans, bond issues and other funds);
attracted financial resources from the investor (funds received from the sale of shares, shares and other contributions from members of labor collectives, citizens, legal entities);
financial resources centralized by associations (unions) of enterprises in the prescribed manner;
funds from extra-budgetary funds;
federal budget funds provided on a non-refundable and repayable basis, funds from the budgets of constituent entities of the Russian Federation;
funds from foreign investors.

Financing of capital investments in construction and facilities can be carried out either from one or from several sources.

In general, all sources of financing are usually divided into centralized (budgetary) and decentralized (extrabudgetary). 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 others (net profit, depreciation, bank loans, issue of securities, etc.) are decentralized.

Sources of funds used by an 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.

Borrowed sources include: loans from banks and credit organizations; issue of bonds; targeted government loan; tax investment credit; investment leasing; investment Seleng.

Raised funds include: issue of ordinary shares; issue of investment certificates; contributions from investors to the authorized capital; funds provided free of charge, etc.

Based on the degree of risk generation, sources can be classified into risk-generating and risk-free. Classification according to this criterion may be useful in determining the optimal structure for financing investments.

Risk-free sources of financing include those whose use does not lead to an increase in the risks of the enterprise, 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 involvement leads to an increase in the risks of the enterprise. These include: borrowed sources (attracting these sources increases the financial risk of the enterprise, since their attraction is associated with an unconditional obligation to repay the debt within a specified period of 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 sources of financing, respectively, means their distribution and ratio in terms of sources of financing. Improving this investment structure consists of increasing the share of extrabudgetary funds to the optimal level. By this we mean the optimal share of state participation in the investment process.

Sources of project financing

It is no secret that investment projects require large expenditures. This is especially noticeable in the real estate sector. It is the most financially intensive. When a new real estate project arises at the initial stage, the company is faced with a significant problem - the need to find the missing funds, without which further development is 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 never happens 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 the expense of their own financial resources, while the latter attract additional resources. Based on this, we can say that sources of investment can be either internal (own) or external.

Internal and external sources of financing investment projects.

Internal sources are classified as follows:

Private money, which was formed from 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:

Allocations from various budgets and funds that provide funds absolutely free of charge;
foreign investments, which are provided in the form of tangible and intangible participation in the authorized capital of an enterprise, or in the form of direct cash investments from international associations and financial institutions;
different types of borrowed money. This includes loans that are given by the state and the Entrepreneurship Support Fund with a money back guarantee, as well as loans from banking organizations and bills of exchange.

Thus, if necessary, you can find the necessary funds for an investment project, since there are quite a lot of 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 successful operation of an organization is the presence of a certain supply of funding sources.

Sources of finance are the financial resources used to purchase assets and carry out transactions.

Sources of financing include short-term and long-term debt, preferred and ordinary shares (balance sheet liability).

An 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 total nominal 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 withdrawal of a participant from its shareholders, the investor has the right only to compensation of its share within 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 primary issue the shares are sold at a price above their par value;
reserves accumulated by the enterprise, including retained earnings;
mobilization of internal assets (in the process of capital construction, a company may generate specific sources of financing, for example, the sale of part of current assets);
other contributions from legal entities and individuals (targeted financing, donations, charitable contributions, etc.).

The main sources of borrowed funds are:

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

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, included in expenses, and dividends on shares of owners are deducted from earnings after interest and taxes.

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

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

Own capital is characterized by the following positive features:

1. Ease of attraction, since decisions related to increasing equity capital (especially through 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 areas of activity, since its use does not require the payment of loan interest in all its forms.
3. Ensuring the financial sustainability of the organization’s development, its solvency in the long term, and, accordingly, reducing the risk of bankruptcy.

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

1. Limitation of the volume of attraction, and therefore the possibility of significantly expanding 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. The unused opportunity to increase the return on equity ratio by attracting borrowed financial resources, since without such attraction it is impossible to ensure that the financial profitability ratio of the organization’s activities exceeds the economic one.

Thus, an organization that uses only its own capital has the highest financial stability (the autonomy coefficient is equal to one), but limits the pace of its development (since it cannot ensure the formation of the necessary additional volume of assets during periods of favorable market conditions) and does not use financial opportunities increase in profit on invested capital.

Borrowed capital is characterized by the following positive features:

1. Quite wide opportunities for attraction, especially with a high credit rating of the organization, the presence of collateral or a guarantee of the recipient.
2. Ensuring the growth of the financial potential of the organization if it is necessary to significantly expand its assets and increase the growth rate of the volume of its economic activities.
3. Lower cost in comparison with equity capital due to the provision of a “tax shield” effect (withdrawal of the costs of its maintenance from the tax base when paying income tax).
4. The 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 reduced financial stability and loss of solvency. The level of these risks increases in proportion to the increase in the share of borrowed capital used.
2. Assets formed from borrowed capital generate a lower (all other things being equal) rate of profit, which is reduced by the amount of loan interest paid in all its forms (interest on a bank loan; leasing rate; coupon interest on bonds; bill interest on goods loan, etc.).
3. High dependence of the cost of borrowed capital on fluctuations in financial market conditions. In some cases, for example, when the average loan interest rate in the market decreases, 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 decisions of other economic entities (creditors), requires in some cases appropriate third-party guarantees or collateral (in this case, 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 an additional volume of assets) and the possibility of increasing the financial profitability of its activities, but 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 payment for the use of financial resources advanced to the organization’s activities, it pays interest, dividends, remuneration, etc., i.e. bears some reasonable costs to maintain 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 volume 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 certain 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: price of capital, value of capital, cost of capital, etc.

The “cost of capital” indicator has different economic meaning for individual business entities:

A) for investors and creditors, the level of 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 specific costs of attracting and servicing the financial resources used, i.e. the price they pay for the use of capital.

With this indicator, the organization estimates how much it should pay to attract a unit of capital (both from a specific source of funds, and for the organization as a whole from all sources).

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

The cost of capital indicator is used in the process of assessing the effectiveness of investment projects and the organization’s investment portfolio as a whole. Making many financial decisions (forming a policy for financing current assets, deciding on the use of leasing, planning the operating profit of an 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 first assessed, then the weighted average cost of capital is determined.

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

1) identification of the main components that are the sources of formation of the organization’s capital 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 that influence the cost of capital of an organization are:

1) the general state of the financial environment, including financial markets;
2) commodity market conditions;
3) the average loan interest rate prevailing in the market;
4) availability of various sources of financing for organizations;
5) profitability of the organization’s operating activities;
6) level of operating leverage;
7) 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 being carried out;
10) industry characteristics of the organization’s activities, including the duration of the operating cycle.

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

Such elements are capital raised 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) bond issues;
6) financial leasing, etc.

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

Sources of financing expenses

All costs associated with the production and sale of products are incurred by enterprises, as a rule, much earlier than their reimbursement from income for sold products. 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 labor of the enterprise’s employees and a number of other expenses for the production and sale of products.

The main sources of financing the costs of an enterprise are the enterprise's own funds (authorized capital, profit) and borrowed funds (bank loans, budgetary allocations). Funds advanced for the formation of inventories of inventory, work in progress, finished products in the warehouse and settlements are restored after income from the sale of products is received in the company's bank account.

Due to the fact that the production process takes place in a certain technological sequence, when the stages of acquiring 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 simultaneously in the enterprise. To replace previously purchased raw materials and used for the production of semi-finished products, the company 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 the stocks of finished products in the enterprise’s warehouse during their sales are replenished at the expense of work in progress. As a result of such consistency and continuity of the production process, the funds invested in these costs move from one stage to another, making a circuit. After completion of the circuit, they are usually fully reimbursed from the gross income of the enterprise. Consequently, they are not spent irrevocably, but are only advanced, constantly being 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 an authorized capital, both from their own sources and from attracted and borrowed funds.

The basis for determining the required amount of such funds is the volume of production, production cost estimates, the duration of the production cycle, the conditions for the procurement and purchase 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.

Costs for 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 (authorized capital, depreciation charges, profits) or at the expense of borrowed and raised funds (bank loans, long-term budget allocations, issue of securities).

Enterprises also spend on social and cultural events aimed at improving the skills of employees, training, improving the socio-cultural and living conditions of enterprise employees. This also includes costs for the creation and reconstruction of fixed assets for non-productive purposes, the maintenance of clubs, preschool institutions, children's recreation camps, the functioning of medical institutions, etc. These expenses, which are important for the social development of the team, are partially included in gross expenses, and are partially made from profits, budget and target revenues, funds from trade union organizations, income from clubs, income from parents in the form of fees for the maintenance of children in preschool institutions, etc.

Structure of funding sources

An organization's financial resources are the totality of its own funds and external receipts at the disposal of the company and intended to fulfill its financial obligations, finance 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, determine the financial well-being of the enterprise, financial stability, solvency and balance sheet liquidity.

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

The main element of the above scheme is equity. 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 financing, donations, charitable contributions, etc.).

The main sources of funds raised include:

1) bank loans;
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 remains after settlements with third parties.

The main sources of financing are our own funds. The enterprise's own funds are formed from internal (these are profits remaining at the disposal of the enterprise, depreciation charges) and external sources (these are additional contributions of funds to the authorized capital, additional issue and sale of shares, receipt of gratuitous financial assistance, other external sources of formation of own financial resources) .

Let us give a brief description of these sources.

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

1) for a state enterprise - the valuation of property assigned by the state to the enterprise with the right of full economic management;
2) for a limited liability partnership - the sum of the owners’ shares;
3) for a joint stock company - the total par value of shares of all types;
4) for a production cooperative - valuation of property provided by participants for conducting activities;
5) for a rental enterprise - the amount of deposits of the enterprise’s employees;
6) for an enterprise of a different form, allocated to an independent balance sheet, - the valuation of the property assigned by its owner to the enterprise with the right of full economic management.

If an enterprise is being created, then contributions to its authorized capital can be cash, tangible and intangible assets. At the moment of transfer of assets in the form of a contribution to the authorized capital, ownership of them passes to the business entity, and investors at this moment lose property rights to these objects. If the need arises for the liquidation of the enterprise or the withdrawal of a participant from the company or partnership, then he has the right only to compensation for his share within the residual property, but not to the return of 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 enterprise's obligations to investors.

The authorized capital is formed during 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, 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.

When forming the authorized capital, additional sources of funds may be generated - share premium. This source occurs during the initial issue, when shares are sold at a price above par. The amounts received are credited to additional capital. Depreciation charges are an internal source of financial resources of the enterprise. They represent the monetary expression of the cost of depreciation of fixed assets and intangible assets and are an internal source of financing for both simple and expanded reproduction.

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

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

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

We list the following regulatory procedures:

1) varying the boundary of classifying assets as fixed assets;
2) accelerated depreciation of fixed assets;
3) the applied method of depreciation of low-value and rapidly wearing items;
4) the procedure for assessing and amortizing intangible assets;
5) the procedure for assessing participants’ contributions to the authorized capital;
6) choosing a method for estimating 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 assigning certain types of expenses to the cost of products sold;
10) the composition of overhead costs and the method of their distribution.

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

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

Specific sources of funds include special-purpose funds and targeted financing:

1) valuables received free of charge;
2) non-refundable and repayable state allocations:
- to finance non-productive activities related to the maintenance of social, cultural and public utility facilities;
- to finance the costs of restoring the solvency of enterprises that are fully funded by the budget, etc.

Debt sources of financing

Borrowed capital is loans from banks and financial companies, loans, accounts payable, leasing, commercial paper, etc.

Fruitful financial activity of any enterprise is practically impossible without attracting borrowed capital from outside. Borrowed funds can significantly expand the scope of the entity's core activities, accelerate the formation of the necessary financial funds, ensure a more cost-effective use of financial equity, and ultimately increase the liquidity and financial value of the enterprise.

Ideally, the basis of an economic entity should be its own funds, but practice in our country shows that for the most part the basis is borrowed funds. 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 final result of the activity.

Classification of borrowed funds of an enterprise:

Classification feature	Types of borrowed funds
1. By purpose 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 raised from external sources; Borrowed funds raised from internal sources (internal accounts payable).
3. According to the period of attraction	Borrowed funds raised for a long-term period (more than 1 year); Borrowed funds raised for a short-term period (up to a year).
4. According to the form of attraction	Funds raised in cash (financial loan); Funds raised in the form of equipment (financial leasing); Funds raised in commodity form (commodity or commercial loan.
5. According to the form of security	Unsecured borrowed funds; Funds secured by surety or guarantee; Funds secured by a mortgage or pledge.

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, accounts payable consist of unpaid taxes, unmade payments to suppliers for shipped goods, unpaid accrued wages, unpaid insurance premiums, and unpaid debts. In other words, accounts payable are bills that must be paid in the normal course of business. Accounts payable within the current deadlines 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 obligations, as well as the presence of overdue debts.

Attracting borrowed funds into the turnover of an enterprise is a normal phenomenon. This contributes to a temporary improvement in 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, age of accounts payable, the presence, frequency and reasons for the formation of overdue debts to resource suppliers, enterprise personnel for wages, the budget, and determine the amount of penalties paid for late payments.

At the same time, if the enterprise’s funds are created mainly through short-term liabilities, then its financial position will be unstable, since short-term capital requires constant operational work 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 debt capital is. Developing the right financial strategy in this matter will help many enterprises improve the efficiency of their activities.

As a rule, the attracted sources of financing include investment funds.

Attracting credit financing is associated with the provision of a loan or loan to a company based on the positive financial results of its previous business activities. Attracting investments occurs in anticipation of the company's future financial efficiency, 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 rather than loans, the risks of implementing the investment project are divided between all parties to the investment project, and the company is liable for these financial obligations only within the limits of the project being implemented.

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

A bond 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 that secures the right of its owner to receive from the issuer of the bond its nominal value or other property equivalent within the period specified in it. A bond may also provide for the right of its owner to receive a fixed percentage of the nominal value of the bond or other property rights. Bond income is interest and/or discount (discount from face value).

The main borrowing instrument in real business is corporate bonds.

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

Accounts payable, which is constantly at the disposal of the enterprise, consists of debt for payment of personnel, debt for taxes 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 accrual and the time of actual transfer of funds.

These funds do not belong to the enterprise and have a specific purpose.

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

Bank loan is the provision of funds on loan to legal entities by financial institutions licensed by the Central Bank of Russia, charging a 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 repayment period - for 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 methods - for loans repaid in a lump sum payment and loans repaid in installments over the entire term of the loan agreement;
- by methods of collecting loan interest - on loans, the interest on which is paid at the time of its total repayment; loans, the interest on which is paid in equal installments throughout the entire term of the loan agreement, loans, the interest on which is withheld by the bank at the time of its immediate disbursement to the borrower;
- according to the availability of collateral - for trust loans (the only form of security for the repayment of which is the loan agreement itself); secured loans; loans secured by financial guarantees from third parties.

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

When carrying out factoring operations, receivables turn 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 and reduce distribution costs.

In the cash flow of enterprises, along with bank loans, there are funds from other creditors, including supplier enterprises and regular 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 deferred payment. A commercial loan is one of the ways of short-term financing. It is provided by the supplier and is executed in different ways: a bill of exchange, an advance payment from the buyer, an open account.

A commercial loan differs from a bank loan in that:

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

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

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

The following conclusions can be drawn:

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

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

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

Financing from your own funds has a number of advantages:

By replenishing the enterprise's profits, its financial stability increases;
- the formation and use of own funds is stable;
- costs for external financing (debt servicing to creditors) are minimized;
- the process of making management decisions on the development of the enterprise is simplified, since the sources of covering additional costs are known in advance.

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

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

Sources of government funding

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

The irrevocability and gratuitousness of financing distinguishes it from lending, as well as from the provision of loans on the terms of repayment and compensation.

Financing is carried out on the basis of the following principles: focus; financing to the extent of execution of works and services; compliance with financial discipline.

The principle of purposefulness enshrines the position according to which all expenses have a specific purpose: wages, business trips, scholarships, current expenses, etc.

Financing based on the performance of work and services means that funds are allocated in accordance with the actual performance of work and services, their quantitative and qualitative indicators.

Compliance with financial discipline is a condition for the correct and legal expenditure 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 governments. Unitary Enterprises are not granted ownership rights to the property assigned to them. Financing of expenses of unitary enterprises can be carried out only for purposes specified by law: expenses for the reorganization of unprofitable coal mines, conversion of the defense industry, etc. Financing of federal government enterprises is carried out both for expenses for current activities and for investments.

Financing of state budgetary institutions has its own characteristics. These institutions belong to the non-productive sphere, do not directly participate in the creation of material assets and do not create national income. Their main purpose is to satisfy the social needs of society. Such institutions and organizations include socio-cultural institutions, government bodies and national defense, which are covered by budgetary funding.

Sources of financing:

1. Property/funds transferred by government decision for the establishment of this enterprise and the introduction of main activities.
2. Funds received from actual products/works and services produced in accordance with the government order.
3. Funds allocated in the prescribed manner 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 type of estimated financing, including expenses for culture, education, and art. Media, healthcare, sports and solving social policy problems.

Sources of asset financing

According to 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, targeted income, etc.);
2) mobilized in financial markets as a result of transactions with securities, loan transactions, etc.;
3) received by way of redistribution (budget subsidies, subventions, insurance compensation, etc.).

More generally, 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 authorized activities of the enterprise.

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

State enterprise - valuation of property assigned by the state to the enterprise with the right of full economic management;
- limited liability partnership - sum - shares of owners;
- joint stock company – the total nominal value of shares of all types;
- production cooperative - valuation of property provided by participants for conducting activities;
- rental enterprise - the amount of deposits of the enterprise’s employees.

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

2) Profit is the main source of funds for an enterprise. The amount of profit remaining at the disposal of an 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 business activities. The source of the fund is profit. The formation procedure is determined by the regulatory documents regulating the activities of an enterprise of this type, as well as its statutory documents.

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

5) Accumulation Fund - intended to finance capital investments. Source: net profit.

And other special purpose 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:
- banking – provided in the form of cash loans by bank lending 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 assets;
- tax – changing the deadline for paying tax if there are certain grounds provided for by law. For example, causing significant material damage to the taxpayer.

An investment tax credit is a change in the tax payment period 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 issue – issue of debt securities (bonds), usually of a targeted nature.

Raised funds of an enterprise are funds that do not yet or no longer belong to the enterprise. For example, accounts payable.

The pattern of financing the activities of an enterprise is such that fixed assets are financed through long-term liabilities, and current assets through short-term liabilities.

Sources of funding for funds

The fixed assets of an enterprise are a set of material and material assets produced by social labor, used in an 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 intended to create working conditions - residential buildings, buildings, garages, salaries), structures (engineering and construction objects intended to carry out the production process and not related to changes in objects of labor - mines, bridges , roads, wells), transmission devices (designed to transmit various types of energy, liquid and gaseous substances), machines and equipment (designed to influence the object of labor, or to move it), vehicles, tools, perennial plantings, draft animals and etc.

Production fixed assets are directly or indirectly involved in the production of material assets. Non-productive fixed assets are not related to the implementation of the statutory activities of the enterprise and include residential buildings, clubs, sanatoriums, and kindergartens. There are active and passive fixed assets. The active part of the funds is directly involved in the production process, while the passive ones (for example, buildings, structures) are not directly involved 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 of the business entity. Thus, in mechanical engineering, metallurgy, and the chemical industry, the leading place is occupied by machinery and equipment, in the energy and fuel industry - structures and transmission devices, in light industry - buildings, in agriculture - perennial plantings and livestock.

Fixed assets have the following types of monetary valuation:

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

The initial cost of fixed assets acquired for a fee is considered to be the amount of the enterprise's actual costs for their acquisition, construction and production, excluding VAT and other refundable taxes. The value of funds received under a gift agreement and in other cases of gratuitous receipt is their market price.

Changes in the original cost are not allowed, except in cases of completion, additional equipment, reconstruction and partial liquidation of funds. The enterprise has the right, no more than once a year, to revaluate fixed assets at replacement cost by indexation or direct recalculation at documented market prices. The need for revaluation is explained by the fact that with changes in selling prices for means of production, estimated prices and tariffs in construction, as well as in connection with changes in the cost of reproduction of fixed assets, incomparability arises between existing and newly introduced fixed assets, 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 volume 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. Both simple (in unchanged, compared to the previous period, volumes of financial investments) and expanded (in volumes exceeding the volumes of the previous period) reproduction of funds are possible.

Investment financing is carried out through:

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

Planning of sources of financing is carried out on the basis of the estimated cost of the planned construction and the determination of own funds.

Own financial resources - include initial contributions from the founders and part of the funds received by the enterprise from economic activities. Own sources are divided into two groups: 1) sources generated from carrying out work in an economic way and 2) sources from the results of core activities.

Sources generated from carrying out work in an economic way (in the case when construction divisions are created at the enterprise itself and workers are hired 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. use of a certain amount to increase working capital in construction. If the program is reduced, then immobilization is planned, i.e. use of released working capital to finance construction.

The calculation is made using the formula:

M=(On-Ok)-(Kn-Kk);
where M is mobilization (immobilization) of internal resources in construction;
It is the expected actual availability of current construction assets at the beginning of the year;
Ok - planned need for working capital at the end of the planning period;
Кн - expected actual construction accounts payable 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 capital investments. If immobilization (negative result), then there is a planned increase in the need for working capital, which increases the enterprise's expenses for capital investments and is reflected in the expenditure part of the plan.

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

Savings from reducing the cost of construction and installation work are generated as a result of taking measures that reduce the cost of construction. It is set as a percentage of the estimated cost of work or based on a plan of organizational and technical measures.

Savings from reductions in equipment prices are determined directly based on their evolving dynamics.

Other sources include income from associated mineral extraction, which is placed at the disposal of the customer, and 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 (the specific amount of resources allocated in the form of investments in fixed assets is established during its distribution in financial terms).

Borrowed funds are represented mainly 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 (guarantees, secured by real estate, other assets). Before issuing a loan, the bank assesses the creditworthiness of the enterprise and studies the feasibility study of the event being financed. In the future, the bank monitors the progress of the event being financed and, in case of violation of the terms of the agreement, may apply financial sanctions.

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

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

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

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

Financing of capital investments for non-productive purposes can be carried out at the expense of the enterprise’s profits, funds from other enterprises attracted on a shared basis, and allocations from budgets.

Types of funding sources

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

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

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

The following main types of financing strategies are distinguished depending on the sources of financing:

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

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

Reinvestment of profits is a more acceptable and relatively cheaper form of financing for an enterprise 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 any intention of ever divesting the investment;
The investor's share of ownership is determined from the ratio of his investments to the total capital of the company.
2. Borrowed investments:
the company receives a contractual obligation to repay the loan amount;
the loan must be repaid in accordance with the terms under which it was received;
the company pays interest on the loan received;
the company provides the necessary and acceptable guarantees for the lender (possibly the personal property of the owners);
if the loan is not repaid according to the agreed schedule, the lender may withdraw the guarantees;
Once the loan amount is returned, obligations to the lender cease.

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 share to a strategic investor;
venture financing;
public offering of securities (IPO);
closed (private) placement of securities;
access to Western financial markets (depository receipts);
bank loans, lines of credit, loans;
commercial (commodity) loan;
state credit (investment tax credit);
bond loan;
project financing;
insurance of export operations;
leasing;
franchising;
factoring;
forfaiting;
grants and charitable contributions;
research and development agreement;
government funding;
issue of a bill;
offset;
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 receive the greatest profit mainly at the time of exit from the project;
does not seek to acquire a controlling stake;
does not seek to change the company's management;
prefers an investment horizon of 4-6 years;
usually consolidates its control by participating in the Board of Directors.

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

Strategic type investor:

Strives 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;
Investor “participation” is often not limited to specific deadlines.

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, supply chains, etc.). In Russia, strategic investors are represented mainly by large transnational companies interested in gaining full control over the business.

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

Managers responsible for commercial credit transactions are required to carefully monitor accounts receivable results. Smart managers are always looking for ways to meet the credit needs of their clients, while achieving their own goals and fulfilling the responsibilities of maintaining cash flow into the company.

A large company may have thousands of clients. It is impossible to control the debt of each client, so the accounts receivable control system must be built in such a way as to enable the manager to calculate the compliance of the balance of accounts receivable with the credit conditions of the corporation and automatically show customers with a critical discrepancy.

The following main methods of controlling accounts receivable are distinguished:

1. “Aging” schedule;
2. Days of unpaid sales;
3. Residual matrix.
Providing a commercial loan always involves the risk of non-payment. It's 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 for invoices due for payment, especially in case of late 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 payment deadline. Such a message may be printed on the next invoice. The letter reminds you of the deadlines and amount (share) of balances to be paid.
2. Finding out the reasons for the offense. If the debt remains unpaid on time, it is useful to contact or meet with the client in person to find out exactly the reason for the violation. 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 determining the reason for the delay in payment, a decision must be made: whether to expect the client to repay the debt, to apply enforcement measures to the client in order to achieve payment of the debt, or to recognize the debt as bad.
3. The situation of non-payment in the case of a discount. Sometimes a situation arises where a customer who is eligible to receive a discount unexpectedly does not pay during the grace period. In this case, you must demand payment for the entire invoice amount. However, if this case is rather an exception, and the client is very important for the company, you can ignore this and not spoil the relationship. The most flexible way to resolve the problem would be to allow the client to keep the discount even in the event of a late payment in the grace period, if the client agrees to pay the next invoice early.
4. Minimize debt collection costs and bad debts. When collecting overdue debt, it is important to keep in mind that the collection process can be costly for the seller, both due to the direct costs associated with it and due to damaged customer relationships. Therefore, it is necessary to evaluate the level of costs associated with debt collection and avoid excessive expenses that do not justify the result. As a goal, it is desirable to prevent unnecessary delays in the cash cycle and reduce the level of uncollected funds to zero. In the case of a balance of uncollected funds, the collection costs of which are estimated to be high, bad debts should be written off. In practice, there is always a share of such debt from the total amount of receivables, and managers need to strive to minimize it.

GDRs are global depositary receipts, aimed at circulation on global financial markets.

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

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

1. The object of investment of investors' funds is a specific investment project, and not the overall production and economic activity of the company receiving the funds. Often, a separate so-called project company is created to obtain and use project financing.
2. The source of return on invested funds is profit from the implementation of the investment project (separated from the financial results of the activities of the project initiators).
3. As part of the financing complex, various sources and forms of financing can be used (loan, financial leasing, acquisition by a bank of a share in the authorized capital of the project initiator, establishment of a new special company with equity participation of the project initiator, the bank and attracted co-investors, issue of targeted bond loans, etc.). d.).
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 agreements and rights under the project;
guaranteed contracts for the provision of raw materials;
guaranteed contracts for the sale of products;
contracts for technical support and preventative repairs;
package of insurance guarantees;
concession/transfer agreement;
possible government investment incentives (preferential taxation, exemption from import duties);
mechanisms to eliminate the risks of currency conversion and transfer.

To ensure full financing of the project, the following guarantees can be used:

Legal guarantees;
reserve funds;
pledges, deposits in special accounts;
bank guarantees and guarantees;
reserve 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, insurance of 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 currently going through a very difficult period. It is characterized by the destruction of the old principles of economic support for the activities of educational institutions and the formation of a new financing model. The old has been destroyed, and the new is just being established. Legislative acts have not been worked out. There is not yet a sufficiently clear division of powers between federal executive authorities and authorities in republics, territories, regions, as well as local governments. The budget system of the Russian Federation is undergoing changes.

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

Budgetary organizations can be classified according to a number of criteria.

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.

Based on the sources of funding, budgetary organizations can be divided into two groups:

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

Internal financing involves the use of those financial resources, the sources of which are generated in the process of the financial and economic activities of the organization (net profit, depreciation, accounts payable, reserves for future expenses and payments, deferred income).

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

The following are distinguished: sources of financing:

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

· Involved funds (foreign investment).

· Borrowed funds (credit, leasing, bills).

· Mixed (complex, combined) financing.

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

Own capital includes:

Authorized capital (formed as a result of the contribution of the founders of the company upon its creation)

Additional capital (formed as a result of revaluation of the organization’s fixed assets)

Reserve capital (formed by deductions from the organization’s profits for subsequent unforeseen needs)

Financing from own funds has a number of advantages:

1) due to replenishment from the profit of the enterprise, its financial stability increases;

2) the formation and use of own funds is stable;

3) external financing costs (debt servicing to creditors) are minimized;

4) the process of making management decisions on the development of the enterprise is forgiven, since the sources of covering 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 funding provides for the use of funds from the state, financial and credit organizations, non-financial companies and citizens: 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.

Allows you to accelerate the turnover of working capital, increase the volume of business transactions, and reduce the volume of work in progress. However, it leads to the emergence of certain problems associated with the need for subsequent servicing of assumed debt obligations.

Credit - a loan in monetary or commodity form provided by the lender to the borrower on the terms of repayment, most often with the borrower paying interest for using the loan. This form of financing is the most common. Advantages of the loan:

· greater independence in the use of received funds without any special conditions;

· most often, a loan is offered by a bank that services a specific enterprise, so the process of obtaining a loan becomes very quick.

To the disadvantages The loan may include the following:

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

· to obtain a loan, an enterprise must provide collateral, often equivalent to the amount of the loan itself;

· with this form of finance, an enterprise can use a standard depreciation scheme for purchased equipment, which obliges it to pay property tax for the entire period of use.

Leasing allows one party - the lessee - to effectively update fixed assets, and the other - the lessor - to expand the boundaries of activity on mutually beneficial terms for both parties.

Advantages of leasing:

· Leasing involves 100% lending and does not require immediate payments .

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

It is easier to get a leasing contract than a loan - after all, the equipment itself serves as security for the transaction. A leasing agreement is more flexible than a loan. A loan always involves limited amounts and repayment terms. When leasing, an enterprise can calculate its income and work out with the lessor an appropriate financing scheme that is convenient for it. Leasing does not increase debt on the company’s balance sheet and does not affect the ratio of equity and borrowed funds, i.e. does not reduce the enterprise’s ability to obtain additional loans. Leasing payments paid by the enterprise are entirely attributed to costs production.

33. Factors determining the structure of funding sources.

Capital any enterprise can be represented by two components: own and borrowed funds.

Included equity two main components can be distinguished: invested capital, i.e. capital invested by the owners in the enterprise, and accumulated capital, i.e. created by the enterprise in excess of what was originally advanced by the owners.

Invested capital in joint stock companies includes the par value of common and preferred shares, as well as additionally paid (in excess of the par value of the shares) capital. The first component of invested capital is represented in the balance sheet of joint-stock enterprises by authorized capital, the second - by additional capital (in terms of share premium).

Accumulated capital is reflected in the form of items arising as a result of the distribution of net profit (reserve fund, accumulation fund, retained earnings, other similar items).

Borrowed funds represent the legal and economic obligations of the enterprise to third parties.

The amount of borrowed funds characterizes possible future withdrawals of the enterprise's funds related to previously assumed obligations. The main types of obligations of the enterprise include:

· long-term and short-term bank loans;

· long-term and short-term loans;

· accounts payable of the enterprise to suppliers and contractors, resulting from a gap between the time of receipt of inventory items or consumption of services and the date of their actual payment;

· debt in settlements with the budget arising as a result of the gap between the time of accrual and the date of payment;

· debt obligations of the enterprise to its employees to pay for their labor;

· debt to social insurance and security authorities;

· debt of the enterprise to other business counterparties.

Borrowed funds are usually classified depending on the degree of urgency of their repayment and the method of security.

By degree of urgency of repayment Liabilities are divided into long-term and current. Funds raised on a long-term basis are usually used to purchase long-term assets, while current liabilities, as a rule, are a source of working capital.

There is a whole a number of factors , affecting the capital structure, which must be taken into account when forming it:

1.rate of increase in enterprise turnover. Increased turnover growth rates also require increased financing. Therefore, with high rates of production growth, enterprises focus on increasing the share of borrowed funds in sources of financing;

2. stability of turnover dynamics. An enterprise with a stable turnover can afford a relatively larger share of borrowed funds in its liabilities;

3. level and dynamics of profitability. It has been noted that the most profitable enterprises have a relatively low share of borrowed funds on average over a long period. The enterprise generates sufficient profit to finance development and pay dividends and manages to a greater extent with its own funds;

4. asset structure. If an enterprise has significant general purpose assets, which by their very nature can serve as collateral for loans, then an increase in the share of borrowed funds in the liability structure is quite logical;

5. severity of taxation. The higher the income tax, the fewer the tax benefits, the more attractive it is for an enterprise to finance from borrowed sources due to the attribution of at least part of the interest on the loan to the cost price. Moreover, the heavier the taxes, the more painfully the enterprise feels the lack of funds and the more often it is forced to turn to credit;

34. Issuance activity of the company.

ISSUE POLICY- part of the general policy for the formation of financial resources of an enterprise, which consists in ensuring the attraction of the required volume from external sources by issuing and placing its own securities (shares, bonds, etc.) on the primary stock market. In modern conditions, enterprises issue mainly shares for placement on the stock market.

From a financial management perspective main goal emission policy is to attract the required amount of financial resources on the stock market in the shortest possible time.

The emission process can be represented as several blocks interacting with each other:

Primary issue

Organization of securities circulation and payment of dividends

Withdrawal of securities from circulation

The primary issue takes place when shares are placed among the founders of a joint-stock company when increasing the authorized capital, forming borrowed capital by issuing bonds. The decision to issue securities is made by the management body of the issuer, which has the authority to do so under the law and the charter of the joint-stock company.

The issue of securities includes the following stages:

Issuer's decision to issue securities

Registration of securities issue

Production of securities certificate

Placement of securities

Registration of the report on the results of the issue

The release of securities into circulation by the issuer is carried out through their placement. The placement of issue-grade securities means their alienation by the issuer to the first owners through the conclusion of civil legal transactions.

The development of an effective emission policy of an enterprise covers the following stages:

1. Research into the possibilities of effective placement of the proposed issue of shares.

Analysis of stock market conditions(exchange and over-the-counter) includes characteristics of the state of supply and demand for shares, dynamics of the price level of their quotation, sales volumes of shares of new issues and a number of other indicators.

Assessing the investment attractiveness of your shares is carried out from the perspective of taking into account the prospects for the development of the industry (in comparison with other industries), the competitiveness of the products produced, as well as the level of indicators of its financial condition (in comparison with the industry average indicators).

Search

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Total: 35 1-20 | 21-35

Establish a correspondence between the sources of business financing and the types of sources: for each position given in the first column, select the corresponding position from the second column.

Write down the numbers in your answer, arranging them in the order corresponding to the letters:

A	B	IN	G	D

Explanation.

Internal sources of financing are sources that the company itself has.

A) net profit - internal sources of business financing.

B) bank loan - external sources of business financing.

C) depreciation charges are internal sources of business financing.

D) funds from an off-budget fund - external sources of business financing.

D) public funds - external sources of business financing.

Answer: 12122.

Answer: 12122

Valentin Ivanovich Kirichenko

Any money taken from the population.

·

1) The set of forms and methods of financial support for the production of goods and services is called financing.

2) Many enterprises are interested in long-term borrowing.

3) When choosing sources of financing, possible changes in the composition of the assets and capital of the enterprise are forecasted.

4) External sources of business financing include depreciation charges.

5) Attracting loans is considered as an internal source of business financing.

Explanation.

There are internal and external sources of cash flow.

Internal sources are sources of cash that are generated from the results of business activities. This could be income from the sale of products or the sale of property. Gross profit is divided into two types of financing: reimbursement of production costs and residual (net) profit. Reimbursement of production costs is tied financing because funds are allocated to specific areas of expenditure. Residual income is the profit that remains in the company after taxes are paid. Net profit is used by the entrepreneur to pay for various expenses in the company, except for expenses. Cash from residual profits is used for the development of business, for paying dividends, and for bonuses to company employees. Internal sources of financing include investments of the company's founders in the authorized capital, as well as funds received after the sale of company shares, the sale of company property, and receipt of rent for leasing property.

External sources are divided into two groups: debt financing and grant financing. Gratuitous financing is the representation of funds in the form of free charitable donations, assistance, and subsidies. Debt financing refers to borrowed capital. Borrowed capital includes: short-term loans and borrowings; long-term loans and borrowings; accounts payable.

1) The set of forms and methods of financial support for the production of goods and services is called financing - yes, that’s right.

2) Many enterprises are interested in long-term borrowing - yes, that's right.

3) When choosing sources of financing, possible changes in the composition of the assets and capital of the enterprise are forecasted - yes, that’s right.

4) External sources of business financing include depreciation charges - no, incorrect.

5) Attracting loans is considered as an internal source of business financing - no, that’s incorrect.

Answer: 123.

Stanislav Ivanov 06.04.2017 22:04

The answer is in option No. 2. "Many enterprises are interested in long-term borrowing." Many enterprises (i.e. the majority, i.e. the overwhelming majority) are interested in achieving self-sufficiency and using internal capital, but not in living on loans. Some kind of nonsense.

Valentin Ivanovich Kirichenko

In social science, there are many such questions due to the specifics of our subject. This is a question from CMM developers. This could very well happen in a real exam......

Anvar Tashtemirov 15.04.2017 18:12

5) true. Attracting loans refers to the internal source of business financing.

Valentin Ivanovich Kirichenko

No, external

·

Choose the correct judgments about the sources of business financing and write down the numbers under which they are indicated.

1) Increasing the volume of external financing for a business increases the degree of control the owner has over the enterprise.

2) The most common form of financing is a bank loan.

3) Internal business financing does not involve additional costs associated with raising capital.

4) Internal sources of business financing include leasing unused assets of the company.

5) Financing of private business cannot be of a state nature.

Explanation.

1) Increasing the volume of external financing for a business increases the degree of control the owner has over the enterprise - no, that’s not true, on the contrary, it decreases it.

2) The most common form of financing is a bank loan - yes, that's right.

3) Internal business financing does not involve additional costs associated with raising capital - yes, that's right.

4) Internal sources of business financing include leasing the company's unused assets - yes, that's right.

5) Financing of private business cannot be of a state nature - no, incorrect, it can.

Answer: 234.

Roma Aliyev 07.06.2016 21:17

leasing out the firm's assets appears to have been an external source of financing. Written in the book FIPI I WILL PASS the Unified State Exam.

Valentin Ivanovich Kirichenko

No, this is an internal source

Tatiana 12.12.2016 10:33

Hello! We did not understand why Internal business financing does not involve additional costs associated with raising capital.

Valentin Ivanovich Kirichenko

Internal financing - we use our assets, what belongs to us and we do not have to make any efforts, much less expenses

·

Choose the correct judgments about the sources of business financing and write down the numbers under which they are indicated.

1) Internal sources of business financing include borrowed capital.

2) Financing refers to the process of formation of a company’s capital in all its forms.

3) External financing always ensures the financial independence of the enterprise.

4) Internal financing involves the use of the company's own funds.

5) Incorporation allows the company to attract external funds.

Explanation.

Based on the place of origin, the financial resources of an enterprise are classified into: internal financing and external financing.

1) Internal sources of business financing include borrowed capital - no, incorrect.

2) Financing refers to the process of formation of a company's capital in all its forms - yes, that's right.

3) External financing always ensures the financial independence of the enterprise - no, incorrect.

4) Internal financing involves the use of the company's own funds - yes, that's right.

5) Incorporation allows a company to attract external funds - yes, that's right.

Answer: 245.

Answer: 245

1) The level of self-financing of an enterprise depends on its internal capabilities.

2) The profit of the company is considered as an external source of financing the business.

3) In a market economy, the production and economic activities of firms can be carried out using borrowed funds.

4) The source of financing for an enterprise can be the issue of shares and their placement on the stock exchange.

5) Financing from own funds simplifies the process of making management decisions on the development of the enterprise.

Explanation.

1) The level of self-financing of an enterprise depends on its internal capabilities - yes, that’s right.

2) The profit of the company is considered as an external source of financing the business - no, that’s not true, it is an internal source.

3) In a market economy, the production and economic activities of firms can be carried out using borrowed funds - yes, that’s right.

4) The source of financing for an enterprise can be the issue of shares and their placement on the stock exchange - yes, that’s right.

5) Financing from one’s own funds simplifies the process of making management decisions on the development of the enterprise - yes, that’s right.

Answer: 1345.

Answer: 1345

Valentin Ivanovich Kirichenko

Question and answer from KIM developers

Alexey Polyansky 17.01.2019 04:39

why is it not true? The profit of a company is considered as an external source of financing for a business. ?

Ivan Ivanovich

The company's profit, depreciation charges, income from the company's property are internal sources of business financing.

·

Choose the correct judgments about the sources of business financing and write down the numbers under which they are indicated.

1) Financing is a way of providing an enterprise with funds.

2) The main disadvantage of self-financing a business is related to the limited funds available to its owners.

3) External financing of a business can be carried out by issuing shares of the enterprise.

4) External sources of financing are sources of cash that are generated from the results of the enterprise’s entrepreneurial activities.

5) The main external source of financing for the company is its profit.

Explanation.

Internal financing involves the use of those financial resources, the sources of which are generated in the process of the financial and economic activities of the organization. Examples of such sources include net profit, depreciation, accounts payable, reserves for future expenses and payments, and deferred income.

External financing uses funds that come to the organization from the outside world. Sources of external financing can be founders, citizens, the state, financial and credit organizations, and non-financial organizations.

1) Financing is a way of providing an enterprise with funds - yes, that’s right.

2) The main disadvantage of self-financing a business is related to the limited funds available to its owners - yes, that’s right.

3) External financing of a business can be carried out by issuing shares of the enterprise - yes, that’s right.

4) External sources of financing are sources of cash that are generated from the results of the enterprise’s entrepreneurial activities - no, that’s incorrect.

5) The main external source of financing for a company is its profit - no, incorrect.

Answer: 123.

Answer: 123

Valentin Ivanovich Kirichenko

NO. this is an external source.

Akirita Sahina 29.05.2017 21:33

Isn't profit the main source???

Valentin Ivanovich Kirichenko

It says external, profit - internal.

·

Ivan draws up a business plan for the development of his enterprise. Which of the following can he use as sources of business financing? Write down the numbers under which they are indicated.

1) attracting loans

2) tax deductions

3) profit from sales of the enterprise’s products

4) funds from the sinking fund

5) issue and placement of shares of the enterprise

6) increasing labor productivity

Explanation.

All sources of financing in business can be divided into internal and external. Internal are those sources that the company itself has. The main internal source of financing for a company is its profit.

A company's profit is the difference between its income and costs or production costs. Now it is not difficult to figure out what the size of a company's profit depends on.

External - other companies. A firm short of funds can find partners who have the same problems. By creating a joint business, partners have the opportunity to expand their financial resources due to economies of scale. Selling shares is also a way to raise finance from outside, and this is a very important source of financing, since a company may have hundreds or thousands of shareholders. Banks. If a company cannot or does not want to seek additional funds for its development by merging with other companies, it borrows them from the bank. A bank is a financial institution that opens current accounts and attracts deposits from some firms and citizens and provides funds in the form of loans to other firms and citizens. Such a transaction between a bank and a company is called a bank loan.

3) profit from sales of the enterprise's products - yes, that's right.

4) funds from the sinking fund - yes, that’s right.

5) issue and placement of shares of the enterprise - yes, that’s right.

6) increasing labor productivity - no, incorrect.

Answer: 1345.

Establish a correspondence between the examples and types of sources of business financing: for each position given in the first column, select the corresponding position from the second column.

A	B	IN	G	D

Explanation.

Based on the place of origin, the financial resources of an enterprise are classified into internal financing and external financing. Internal financing involves the use of those financial resources, the sources of which are generated in the process of the financial and economic activities of the organization. Examples of such sources include net profit, depreciation, accounts payable, reserves for future expenses and payments, and deferred income. External financing uses funds that come to the organization from the outside world. Sources of external financing can be founders, citizens, the state, financial and credit organizations, and non-financial organizations.

A) issue and sale of securities - external.

B) net profit - internal.

C) attracting investments - external.

D) use of loans - external.

D) depreciation charges - internal.

Answer: 21221.

Company Z plans to expand production. Which of the following can they use as sources of business finance? Write down the numbers under which they are indicated.

1) attracting loans

2) tax deductions

3) increasing labor productivity

4) profit from sales of the enterprise’s products

5) improvement of production technologies

6) issue and placement of shares of the enterprise

Explanation.

There are internal and external sources of cash flow. Internal sources are sources of cash that are generated from the results of business activities. This could be income from the sale of products or the sale of property. Gross profit is divided into two types of financing: reimbursement of production costs and residual (net) profit. Reimbursement of production costs is tied financing because funds are allocated to specific areas of expenditure. Residual income is the profit that remains in the company after taxes are paid. Net profit is used by the entrepreneur to pay for various expenses in the company, except for expenses. Cash from residual profits is used for the development of business, for paying dividends, and for bonuses to company employees. Internal sources of financing include investments of the company's founders in the authorized capital, as well as funds received after the sale of company shares, the sale of company property, and receipt of rent for leasing property.

External sources are divided into two groups: debt financing, grant financing. Gratuitous financing is the representation of funds in the form of free charitable donations, assistance, and subsidies. Debt financing refers to borrowed capital. Borrowed capital includes: short-term loans and borrowings, long-term loans and borrowings, accounts payable.

1) attracting loans - yes, that's right.

2) tax deductions - no, incorrect.

3) increasing labor productivity - no, incorrect.

4) profit from sales of the enterprise's products - yes, that's right.

5) improvement of production technologies - no, incorrect.

6) issue and placement of shares of the enterprise - yes, that’s right.

Answer: 146.

Establish a correspondence between the examples and types of funding sources: for each position given in the first column, select the corresponding position from the second column.

Write down the numbers in your answer, arranging them in the order corresponding to the letters:

A	B	IN	G	D

Explanation.

There are internal and external sources of cash flow. Internal sources are sources of cash that are generated from the results of business activities. This could be income from the sale of products or the sale of property. Gross profit is divided into two types of financing: reimbursement of production costs, residual (net) profit. Reimbursement of production costs is tied financing because funds are allocated to specific areas of expenditure. Residual income is the profit that remains in the company after taxes are paid. Net profit is used by the entrepreneur to pay for various expenses in the company, except for expenses. Cash from residual profits is used for the development of business, for paying dividends, and for bonuses to company employees. Internal sources of financing include investments of the company's founders in the authorized capital, as well as funds received after the sale of the company's property and receipt of rent for leasing the property.

External sources are divided into two groups: debt financing and grant financing. Gratuitous financing is the representation of funds in the form of free charitable donations, assistance, and subsidies. Debt financing refers to borrowed capital. Borrowed capital includes: short-term loans and borrowings, long-term loans and borrowings, accounts payable.

A) the firm's net income is internal.

B) government order - external.

C) obtaining loans - external.

D) depreciation charges - internal.

D) issue and sale of securities - external.

Answer: 12212.

Alina and Sergey are drawing up a business plan for the development of their enterprise. Which of the following can they use as sources of financing for their business? Write down the numbers under which these sources appear.

1) improvement of production technologies

2) sinking fund

3) increasing labor productivity

4) income from sales of the enterprise’s products

5) attracting loans

6) tax deductions

Explanation.

1) improvement of production technologies - no, incorrect, a factor of economic growth.

2) sinking fund - yes, that's right.

3) increasing labor productivity - no, incorrect, a factor of economic growth.

4) income from sales of the enterprise's products - yes, that's right.

5) attracting loans - yes, that's right.

6) tax deductions - no, incorrect, cash outflow.

Answer: 245.

Having decided to engage in entrepreneurial activity, Sidorov chose the status of an individual entrepreneur as his legal form. Which of the following are among the benefits of this status?

1) simplified accounting procedure

2) preferential tax system

3) full property liability for obligations

4) lack of business partners

5) free use of proceeds

6) mandatory state registration

Explanation.

1) simplified accounting procedures - yes, that’s right.

2) preferential taxation system - yes, that's right.

3) full property liability for obligations - no, incorrect.

4) lack of business partners - no, incorrect.

5) free use of proceeds - yes, that's right.

6) mandatory state registration - no, incorrect.

Answer: 125.

Mikhail Kvashnin 06.06.2016 17:35

I think the correct answer is 1245. Lack of business partners, which means there is no need to share profits.

Valentin Ivanovich Kirichenko

And no one will help - a dubious advantage

Ant Valentine 22.11.2016 12:23

The question is what is the advantage of the taxation system. An individual entrepreneur is on the simplified tax system or UTII, not all LLCs use a common taxation system; they can, like individual entrepreneurs, be on any type of simplified tax system and UTII (for example, security companies... etc.)

Valentin Ivanovich Kirichenko

Not everyone can, but an individual entrepreneur can pay in a simplified manner

Regina Sagitova 09.12.2016 19:14

Why is the third option not suitable?

Vladimir Burov 17.04.2018 18:40

But he needs to pay his employees for the maintenance of his transport, where is the free disposal of the proceeds?

Valentin Ivanovich Kirichenko

We are not dependent on shareholders or shareholders

·

Answer: 135

And the aforementioned student cannot help but encounter limited freedom of action. Just like that.

Guest 25.02.2014 18:01

But wouldn’t the complexity of managing an enterprise be considered a difficulty?

Petr Dmitrievich Sadovsky

This difficulty appears in other forms of business organization. For example, in joint-stock companies, partnerships. In an individual entrepreneur, the organizer makes all decisions individually and he is responsible for them.

Danil Boldyrev 23.03.2016 15:45

Limited funds cannot be a necessary difficulty, since perhaps relatives give him funds or he saved them.

Valentin Ivanovich Kirichenko

And if they don’t give and there are no savings. How much could a student save by saving on pies? In less than six months, you will find out.

Kirill Cherednichenko 10.02.2017 10:14

According to the same logic that is given in the explanation, answer option number 5 is also suitable, is it possible that limited funds for attracting professionals can only manifest itself in these two forms? If I'm wrong, please explain why

Valentin Ivanovich Kirichenko

In other forms, finances are much simpler; they issued securities and used the money received from this to hire a high-flying company. specialists Clear? Good luck.

·

Citizen N. completed a course in the basics of entrepreneurship and decided to found his own individual enterprise and start developing websites. Select the advantages of this form of business from the list below and write down the numbers under which they are indicated.

1) ease of obtaining bank loans

2) high degree of security of commercial information

3) ease of organization and management

4) no need to share profits with co-owners

5) enough funds for an advertising campaign

6) the opportunity to attract highly qualified specialists

Answer: 234

Subject area: Economics. Main sources of business financing

2) entrepreneurship

3) offer

4) investments

In economics, sources of material investment are usually divided into two main categories: internal and external sources of investment. In the macroeconomic sense, internal sources are presented in the form of national resources, these can be the capital of enterprises, budgetary allocations. External sources include, respectively, foreign investments, 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 highlight other sources and methods of investment in these categories. It is customary to include the internal profits of the enterprise, the capital of shareholders in the enterprise and depreciation expenses (gross investments). External ones include borrowed capital, government subsidies, money extracted 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 investment include the investor’s own funds, and external sources include all others. Much simpler, isn't it? In microeconomics, the division into categories is even more detailed. What are the sources of investment financing? There are three main groups: own, attracted and borrowed.

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

In Russia, the majority of capital comes from raised funds in the form of government subsidies and subsidies. In the USA and England, most of the funds are the fixed capital of the companies themselves. In actively developing countries with constantly growing economies (Korea, Japan, Germany), the overwhelming majority of companies' capital consists of attracted and borrowed funds, most often in the form of foreign investments.

2 Internal sources of financing

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 financial investment:

• enterprise profits;
• depreciation expenses;
• reinvested non-current assets;
• reinvested part of current assets.

The net profit of an enterprise constitutes the largest part of the induced or variable investments of enterprises. The total amount of induced investment consists of reinvested non-current assets and part of the enterprise's profits, which it is ready to use to implement its own investment policy. The share of profits returned to fixed capital depends on the marginal propensity to invest.

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

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

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

3 Investments from external sources

External sources include sources of financing 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 last ones. Attracted sources of money for investment formation:

• 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 free investment from commercial organizations.

Any enterprise 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 searching for private investors interested in profitable placement of capital.

Companies also actively participate 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 receiving 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 capital investments have become a significant part of the modern economy and have allowed giant corporations to enter the market with innovative products. If the developers of revolutionary software and the latest high-tech products had used their own sources of investment, the modern economy would look completely different.

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

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

Loans can often be the only way to get the money needed for development. Large financial institutions often provide huge loans to companies that are simply unable to meet domestic demand for investment by attracting funds from private investors. An example is the company's initiative Marvel, which entered into a 7-year contract 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 to the owners Marvel They 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 raise money, which is suitable for large companies looking for immediate financing. 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 a leasing basis.

4 Borrowed and attracted investments - main characteristics

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

• the difficulty of selling securities on the stock exchange;
• mandatory full payment of the authorized capital;
• Only closed and open joint-stock companies issue shares;
• dividends must be paid.

Debt investments may be more attractive to businesses that have a strong financial position. For these companies, borrowed capital will be cheaper than attracted capital in the long term. The characteristics of borrowed investments include:

• the need to provide collateral for a loan;
• only companies with good financial performance have the opportunity to obtain leasing or credit;
• 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 working conditions 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 companies this is a definite plus; for others, increasing the number of shareholders does not seem like 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 conditionally be classified as a borrowed source, 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 essence, 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. A leasing agreement traditionally involves three parties: the lessor, the lessee, and the seller. This scheme is somewhat different from a debt agreement.

Franchising is the transfer of intellectual property from the copyright holder to an enterprise for a nominal fee. This form of indirect investment has allowed many companies to strengthen their positions in the market. The most striking example in the Russian economy is the McDonalds chain. A large restaurant chain transfers the rights to use its trademarks through a franchising scheme and thus invests in the Russian economy.

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

Indirect sources of investment financing do not have a critical impact on the financial performance of the enterprise and RVP in the macroeconomic sense, but 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 can understand from the above, external investments represent the greatest importance for a company and can be a decisive factor in the process of its expansion or restructuring. Many companies would not be able to receive external financial incentives if telecommunications infrastructure had not developed over the past twenty years to the level at which it is now.

Previously, trust funds and brokers raised funds for trading on stock exchanges by contacting citizens by telephone or mail. They attracted money from outside by 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 market conditions.

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

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

Sources of financing for the enterprise. Key Features

Sources of financing are functioning and expected channels for obtaining financial resources, as well as a list of economic entities that can provide these financial resources. The basis of the project financing strategy is to develop financing schemes based on the individual characteristics of the project and the factors influencing it.

The following main types of financing strategy are distinguished depending on the sources of financing:

Financing from internal sources.

Financing from raised funds.

Debt financing.

Mixed (complex, combined) financing.

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

Reinvestment of profits is the most acceptable and relatively cheap form of financing for an enterprise expanding its activities.

Features of external sources of financing:

1. Attracted investments:

The investor is interested in high profits and the company itself;

The investor may (or may not) have any intention of ever divesting the investment;

The investor's share of ownership is determined from the ratio of his investments to the entire capital of the company.

2. Borrowed investments:

The company receives a contractual obligation to repay the loan amount;

The loan must be repaid in accordance with the terms under which it was received;

The company pays interest on the loan received;

The company provides the necessary and acceptable guarantees for the lender (possibly the personal property of the owners);

Closed (private) placement of securities;

Access to Western financial markets (depository receipts);

Bank loans, lines of credit, loans;

Commercial (commodity) loan;

State credit (investment tax credit);

Bond loan;

Project financing;

Insurance of export operations;

Franchising;

Factoring;

Forfaiting;

Grants and charitable contributions;

Research and Development Agreement;

Government funding;

Issue of a bill;

Settlement;

The most typical financial instruments for Russia are discussed below.

Sale of a share to a financial or strategic investor

There are two types of equity investors.

Financial type investor:

Strives to maximize the value of the company, has only a financial interest - to receive the greatest profit mainly at the time of exit from the project;

Does not seek to acquire a controlling stake;

Does not seek to change the company's management;

Prefers investment horizon - 4-6 years;

Usually consolidates its control by participating in the Board of Directors.

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

Strategic type investor:

Strives 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;

- investor “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, supply chains, etc.). In Russia, strategic investors are represented mainly by large transnational companies interested in gaining full control over the business.

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

Accounts receivable management

Managers responsible for commercial credit transactions are required to carefully monitor accounts receivable results. Smart managers are always looking for ways to meet the credit needs of their clients, while achieving their own goals and fulfilling the responsibilities of maintaining cash flow into the company.
A large company may have thousands of clients. It is impossible to control the debt of each client, so the accounts receivable control system must be built in such a way as to enable the manager to calculate the compliance of the balance of accounts receivable with the credit conditions of the corporation and automatically show customers with a critical discrepancy.

The following main methods of controlling accounts receivable are distinguished:

Aging schedule

Days of unpaid sales

Residual Matrix

Providing a commercial loan always involves the risk of non-payment. It's 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 for invoices due for payment, especially in case of late payment.

There are several approaches to debt collection.

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 payment deadline. Such a message may be printed on the next invoice. The letter reminds you of the deadlines and amount (share) of balances to be paid.

Finding out the reasons for the offense. If the debt remains unpaid on time, it is useful to contact or meet with the client in person to find out exactly the reason for the violation. 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 determining the reason for the delay in payment, a decision must be made: whether to expect the client to repay the debt, to apply enforcement measures to the client in order to achieve payment of the debt, or to recognize the debt as bad.

The situation of non-payment in the case of a discount. Sometimes a situation arises where a customer who is eligible to receive a discount unexpectedly does not pay during the grace period.
In this case, you must demand payment for the entire invoice amount. However, if this case is rather an exception, and the client is very important for the company, you can not pay attention to 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 in the grace period, if the client agrees for early payment of the next bill.

Minimize debt collection costs and bad debts. When collecting overdue debt, it is important to keep in mind that the collection process can be costly for the seller, both due to the direct costs associated with it and due to damaged customer relationships. Therefore, it is necessary to evaluate the level of costs associated with debt collection and avoid excessive expenses that do not justify the result. As a goal, it is desirable to prevent unnecessary delays in the cash cycle and reduce the level of uncollected funds to zero. In the case of a balance of uncollected funds, the collection costs of which are estimated to be high, bad debts should be written off. In practice, there is always a share of such debt from the total amount of receivables, and managers need to strive to minimize it.

GDRs are global depositary receipts, aimed at circulation on global financial markets.

Project financing

Project financing is a set of activities aimed at attracting funds and other material resources against the assets and cash flows of the company. Project financing is a relatively young and promising complex financial instrument, which is distinguished by the following features.

The object of investment of investors' funds is a specific investment project, and not the overall production and economic activity of the company receiving the funds.
Often, a separate so-called project company is created to obtain and use project financing.

The source of return on invested funds is profit from the implementation of the investment project (separated from the financial results of the activities of the project initiators). As part of the financing complex, various sources and forms of financing can be used (loan, financial leasing, acquisition by a bank of a share in the authorized capital of the project initiator, establishment of a new special company with equity participation of the project initiator, the bank and attracted co-investors, issue of targeted bond loans, etc. ).
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 contract to ensure proper operation;

The right of the creditor to enter into the most significant agreements and rights under the project;

Guaranteed contracts for the provision of raw materials;

Guaranteed agreements for the sale of products;

Contracts for technical support and preventative repairs;

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.

To ensure full financing of the project, the following guarantees can be used:

Legal guarantees;

Reserve funds;

Collaterals, deposits in special accounts;

Bank guarantees and guarantees;

Reserve support loans;

Fixed price contracts;

Bank accounts with special treatment (including letters of credit);

Obligations of founders (sponsors) for additional contributions to the capital of the project company;


Insurance of loans against the risk of non-repayment, insurance of project assets and cargo against the risk of loss, insurance of profits, liability of project developers, construction and other risks;
hedging.

Project financing is a progressive tool of the future. Through project financing, the volume of attracted investments in production and infrastructure areas is growing.

Various parties are involved in a project financing scheme. The bank can act as a project organizer, financial consultant and co-investor.


Anton Gagen

Information Agency "Financial Lawyer"