Classification of sources of financing of entrepreneurial activity. External sources of financing of entrepreneurial activity and the effectiveness of their use Sources of financing of entrepreneurial activity of organizations
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Introduction
1 Funding entrepreneurial activity
1.1 Financing: concept and features
1.2 Sources of financing of entrepreneurial activity, and their classification
2 External and domestic funding, sources, significance
Conclusion
List of used literature
INTRODUCTION
Currently, Russia is at a turning point in its development. The fate of the ongoing reforms is called into question, the answers to which largely depend on the state and trends in the development of entrepreneurship.
The formation of entrepreneurship takes place in difficult conditions for the choice of conceptual ways of becoming market economy and the formation of a new legal system in Russia as a whole. The practical solution of many problems of entrepreneurship development is complicated by the lack of their theoretical developments. Among such problems is legal regulation entrepreneurship.
Russian legislation is far from a state that meets the requirements of the current stage of business development. Today, society bears huge economic and moral costs due to uncivilized relations in the field of entrepreneurship. There is a need to study the public law intersectoral and intersystem mechanism for regulating entrepreneurship.
The problem of entrepreneurship is young. The recent explosion of interest in this problem is due to the avalanche-like growth of contradictions in the development of entrepreneurship in Russia. To date, there are no specific comprehensive research question state regulation entrepreneurship, taking into account the organization of power in Russia. This circumstance hinders further improvement of the security system as a whole.
Legislation regulating entrepreneurial activity in Russia is in its infancy. Existing legal system Russia cannot ensure the rights and interests of entrepreneurs. Official law turned out to be divorced from real processes, so most of the entrepreneurial activity is carried out outside of it. Lack of effective legal regulations leads to legal nihilism and illegal methods of doing business and resolving disputes.
Entrepreneurship financing is a very important issue in entrepreneurial activity in general. The subject of this work is the financing of entrepreneurial activity. It should be noted that on this stage development of the country, the issue of financing entrepreneurial activity has not yet been sufficiently developed.
1 BUSINESS FINANCING
1.1 Financing: concept and features
Financing is one of the types of financial support for business activities. Financing and lending are very similar concepts, but still have a number of differences from each other. Lending can be seen as part of financing. Lending, like financing, provides the financial needs of the expanded production process.
Financing is a gratuitous and irrevocable provision of funds in various forms for the implementation of any activity.
It is also necessary to say that an important distinguishing feature of financing is that the ownership right of the entity that provided the funds does not arise. In addition, financing can be carried out exclusively in cash. This is how financing differs from investing, so the two should not be confused. And another main distinguishing feature of investing is making a profit, while financing does not pursue such a goal.
So, summing up the above, it should be noted that financing is different from investing, as well as from lending. But lending can be considered as part of financial legal relations, while investing should not be confused with financing in any way.
1.2 Sources of business financing, and their classification
Equity is personal funds invested in a business. If the business does not take place, then the investor will lose them. Equity is risk capital as the owner is risking their own money by investing in this business. Investing your own money in a business is risky. You can also part of the majority of credit organizations that provide funds for financing entrepreneurial activities, put one of the conditions for issuing loans to invest in business part own funds entrepreneur.
business financing
2 EXTERNAL AND DOMESTIC FINANCING, SOURCES, SIGNIFICANCE
Financing of an investment project should ensure such dynamics of investments that would allow the project to be implemented within the scheduled time frame at all stages of its development. life cycle subject to financial constraints, as well as reduce costs and risk by optimizing cash flows and using tax
Financing of an investment project is divided into a number of stages: pre-investment, investment, operational, which are the stages of the life cycle of an investment project.
At the preliminary stage, the costs of conducting marketing research, a feasibility study of the project, a viability analysis, and a decision is made on the feasibility of financing.
At the investment stage, a project implementation plan is developed, total amount and sources of financing, cash flow plan at all stages of project implementation and control organization.
At the operational stage, working capital is financed (purchase of raw materials and materials), intra-company expenses for the production and sale of products, settlements with suppliers, creditors.
An important point at all stages of the implementation of an investment project is the choice of methods of financing and optimization of their structure.
The methods of financing investment projects are understood as fundamental approaches to the financing of individual investment projects that are used by business entities in the development of a policy for the formation of investment resources.
There are two types of financing of investment projects: internal and external. With the internal type of financing, the sources used are: sale of assets, retained earnings, reduction in working capital, receivables efficiency, loans from suppliers. The external type of financing involves the following sources: obtaining loans, issuing ordinary or preferred shares.
Loans as a method of financing are associated with the use of various interest-bearing loan instruments. There are the following types of loans: bond, guarantee, option, target, rental, subordinate, etc.
With funding major projects associated with large capital expenditures, the issue of shares can be combined with the issue of debt.
Any method of financing investment projects has its advantages and disadvantages. The main principles of their selection are: availability of funds, guaranteed income and the amount interest rate. For the final decision on the choice of financing scheme, a comprehensive assessment of the consequences of investing, taking into account the degree of risk, is required. Evaluation of external sources of financing includes taking into account the time of possible use of them, the costs associated with them, as well as the degree of loss of control over the firm.
In practice financial management Usually five methods of financing investment projects are used: full self-financing, corporatization, credit financing, financial leasing, mixed (equity) financing.
In a broad sense, the methods of financing investment projects include:
Budget financing;
Debt financing;
shareholding;
Self-financing;
mortgage;
Forfaiting;
Attraction of foreign investments;
Project finance.
Let's give them a brief description.
Budget investment is characterized by the targeted nature of the use of budgetary resources. Sources of budget investment are federal budget funds, budgetary funds of subjects and local governments.
Budgetary funds are allocated for partial financing of investment projects that have passed a competitive selection, and this procedure applies to all investors, regardless of ownership.
The right to participate in the competition and provide state support Projects that meet the following criteria are eligible:
The idea of an investment project should be related to the “growth point” of the economy;
The investor is obliged to invest at least 20% of his own funds (share capital, depreciation, profit) in the implementation of the project;
The payback period of the project, as well as the period of delivery of the facility on a turnkey basis, should not exceed two years;
The coefficient of absolute liquidation is set at least 0.33;
The investment project should include a business plan and the conclusion of the state environmental review.
A common method of financing investment projects is debt financing. Its main sources are:
Long-term loans of commercial banks;
Government subsidies;
mortgage loans;
Private placement of debt obligations;
Shareholding.
Long-term loans are usually provided by commercial banks in the form of bank loans. To receive them, the following documents are submitted to the bank:
Balance sheet for the last reporting date;
Gains and losses report;
Feasibility study of the project.
With a positive decision on lending, a loan agreement is concluded between the borrower and the lender, which defines the procedure for granting, processing and repaying long-term loans.
The current legislation of the Russian Federation establishes a number of rules on the loan agreement:
Credit agreements must be concluded only in writing, failure to comply with this rule entails the invalidity of the agreement, its nullity;
The lender has the right to refuse to provide the borrower with the loan provided for in the loan agreement in whole or in part if there are circumstances indicating that the amount provided to the borrower will not be returned on time;
If the borrower violates the obligation of the intended use of the loan stipulated by the loan agreement, the lender has the right to refuse further lending to borrowers under the agreement;
The borrower has the right to refuse to receive a loan in whole or in part, notifying the lender about this before the term for its provision established by the agreement, unless otherwise provided by law.
Large loans are usually issued in installments within the terms stipulated by the agreement. This type of lending is called a line of credit.
Bank borrowers are required to pay loan interest and a commission for granting a loan, which is defined in the loan agreement as a percentage of the loan amount.
Long-term loans can be issued not only by commercial banks, but also by savings banks.
Financial interest rates are fixed. Sliding interest rates vary depending on the length of the loan term.
When lending to investment projects by commercial banks, a number of conditions are put forward:
Export-oriented projects are subject to priority financing;
The profitability of the project should exceed 15%;
The project must have financial payback;
The borrower's own investment in the project must be more than 30% of the total cost, etc.
When lending to large-scale projects, commercial banks usually give priority to projects that provide for the technical re-equipment and modernization of existing operating industries without additional capital construction in large volumes. Therefore, they practically do not provide loans related to financing the introduction of fundamentally new technological developments.
One of the sources of debt financing for investment projects is government subsidies. Providing a federal subsidy for the development and implementation of an innovative idea is a very rare occurrence. Nevertheless, federal agencies have been created in Russia whose task is to evaluate and select proposals for planned research for funding. Agencies develop topics and publish announcements of their interest in certain research and development. Enterprises send their proposals to the agencies, which are then evaluated and, if approved, subsidies are provided.
The most important source of debt financing is a loan secured by real estate (mortgage).
When financing investment projects, the following types of loans are used:
Standard mortgage loan, which is characterized by the repayment of the debt and the payment of interest in equal installments;
A growth loan that involves increasing installments at a fixed, constant rate initially and then repaying them in constant amounts;
A mortgage with a variable payment amount, where only interest is paid during the grace period and the principal amount of the debt does not increase;
Mortgage with a security account, which is based on the opening of a special account, and the debtor pays a certain amount to the latter to secure the payment of contributions at the initial stage of the project;
A loan with a reduced rate, when the collateral account is opened by the seller of the supplied equipment.
One of the sources of financing investment projects is the private placement of debt obligations, which can be carried out in such forms as:
Debt obligations with warrants;
Subordinary convertible bonds.
Warranted debt is an obligation to repay a certain amount of money to a creditor after a predetermined period at an agreed premium.
Warrants in this case are an attachment to a security in the form of a project agreement that provides the owner of the security with rights and benefits - the purchase of company shares at a fixed price within the period established by the agreement.
Subordinary convertible bonds are a special type of debt. They are repaid before all obligations on shares, but later than other types of debts: bank loans, taxes. Therefore, holders of ordinary shares are entitled to receive funds only after fulfilling obligations to holders of subordinate convertible bonds.
Shareholding as a method of financing investment projects is usually used at the initial stage of their development. For this purpose, an open subscription for shares of the newly created enterprise is announced for legal entities and individuals. The share capital of the enterprise is formed by issuing and selling shares on the securities market. Issued shares may be preferred or common.
The buyers of shares can be:
Customers interested in products that will be produced after the completion of the project and commissioning production capacity;
External investors interested in the return on their investment, obtaining tax benefits, etc.
The advantage of corporatization is that the bulk of financial and other resources in the form of equipment, technology, rights to use national natural resources etc. arrives at the beginning of the project. Thanks to this, the accumulated amounts of money allow you to postpone the repayment of claims to a later date, that is, when the project begins to generate income.
IN market conditions self-financing is the most reliable way to implement investment projects. In accordance with the current legislation of the Russian Federation, investment activities can be financed by entities through the formation of their own investment funds. The sources of investment funds are financial resources and on-farm reserves: profit, depreciation, cash savings and savings of citizens and legal entities, insurance funds in the form of compensation for losses from accidents, natural disasters and other funds.
Having gained financial self-sufficiency and independence, enterprises can decide on their own the distribution of net profit remaining after the payment of taxes to the budget and the fulfillment of other debt obligations. No one, including the state, has the right to interfere in the process of distribution and use of net profit.
The resulting net profit of the enterprise can be used to finance work related to the reconstruction, technical re-equipment and modernization of production facilities, scientific research, improvement of product quality, etc.
From the net profit, the expenses for the social needs of the enterprise are covered: bonuses, allowances for pensions, dividend payments on shares, material assistance to the needy, housing costs, etc.
In market conditions, maintaining a high competitiveness of the enterprise is its strategic goal. Therefore, profit should contribute to its implementation. Hence, priority in the distribution of profits should be given to the development of production, which in the future will contribute to solving the social problems of the enterprise.
In addition to profit, the most important source of self-financing at the enterprise is depreciation. Fixed assets in the course of their operation gradually wear out physically and become morally obsolete, i.e., lose their original parameters. The cost of their depreciation is repaid by depreciation, which is included in production costs, and after the sale of products, it goes to the enterprise in cash. However, fixed production assets do not require replacement of their natural form after each production cycle. As a result, the company generates free cash that can be accumulated or used to expand production and modernize it.
Depreciation deductions are made according to certain norms, which are called depreciation rates. In addition to profits and depreciation, enterprises can use the sale of part of their assets for self-financing, attract other investors on the basis of equity participation, etc.
The use of equity capital to finance investment projects has a number of advantages over other financing methods. Firstly, it provides savings in financial resources, since when attracting borrowed money interest must be paid. Secondly, the procedure for raising the necessary funds for the implementation of the project is simplified, since it does not require coordination of financing issues with other business entities. Thirdly, the degree of risk associated with breach of obligations by credit institutions is reduced. As a result, a large financial stability, enterprises and facilitates the process of managing financial flows during the implementation of an investment project.
CONCLUSION
The main part of own funds is made up of depreciation deductions and funds allocated for investments at the expense of profit. With depreciation deductions, it turns out as follows - the money allocated to maintain fixed assets is accumulated, all the time until the moment comes for their replacement or repair, until such funds can be successfully used to finance investments.
Funds raised include money received through the sale of shares, public and private investments in various forms, various donations and contributions. In the case of loans we are talking, first of all, about loans in banks and other credit organizations, and various forms of long-term lease - leasing.
Each of the methods of financing investments has a number of features and limitations, and is applied depending on a number of factors and circumstances - which will ultimately determine the method of obtaining money. Here, the determining factors can be the presence of transparent cash flows, the presence of own fixed assets, stability and good potential for dynamic development, and a number of other requirements. The presence and implementation of which guarantees the investor a return and increase in invested funds.
Sources of investment financing: their classification and methods of attraction.
Investment financing - providing investment activities with the necessary funds from various sources.
There are the following types of financing:
By the frequency of receipt: current and special.
By duration: short-term, medium-term, long-term.
According to the legal status of the investor: own, borrowed, attracted.
By origin of funds: external, internal.
External sources of formation of investment resources - borrowed and attracted sources of financing the implementation of investment projects.
Internal sources of formation of investment resources - own sources of financing the implementation of investment projects (part of the company's net profit subject to capitalization, depreciation).
Own sources of formation of investment resources - cash and other property of the owners of the company (firm), involved in the implementation of the investment portfolio.
Own sources of investment include:
Depreciation deductions are the main own source of financing for the simple reproduction of fixed assets of enterprises. Their size is determined by multiplying the established depreciation rates by the book value of the corresponding groups of fixed assets used in the production process of the enterprise.
Deductions from profit for investment needs;
Amounts paid by insurance companies and institutions in the form of compensation for damage from natural and other disasters, etc.;
Other types of assets (fixed assets, land plots, industrial property in the form of patents, software products, trademarks).
Borrowed sources - funds and other property attracted for the implementation of the investment portfolio on a credit basis:
Leasing is a long-term form of lease of machinery and equipment, used as one of the borrowed sources of investment resources formation,
Seleng - transfer to owners (legal entities and individuals) of the rights to use and dispose of their property for a fee,
Foreign investments provided in the form of financial or other tangible and intangible participation in the authorized capital of joint ventures, as well as in the form of direct investments (in cash) international organizations and financial institutions, states, enterprises and individuals;
Various forms of borrowed funds, incl. loans provided by the state and entrepreneurship support funds on a repayable basis (including on preferential terms), loans from banks and other institutional investors (investment funds and companies, insurance companies, pension funds), other enterprises, promissory notes and other funds. Credit - a loan in cash or commodity form on terms of repayment and usually with the payment of interest.
Classification of loans used to finance investments.
A bond loan as a form of credit financing of investments is an external borrowing based on the issue of bonds. In Russian practice, only joint stock companies whose solvency and business reputation raise no doubts. The funds raised include:
Funds received from the issue by the enterprise and the sale of shares;
Funds allocated by superior holding and joint-stock companies, industrial and financial groups on an irrevocable basis;
Allocations from the federal, regional and local budgets, various entrepreneurship support funds provided free of charge.
LIST OF USED LITERATURE
1. Litvin M.I. Enterprise financial management. Financial management. 2002 No. 6.
2. Finance of enterprises: Textbook for universities / N.V. Kolchina, G.B. Polyak, L.P. Pavlova and others; Ed. Prof. N.V. Kolchina. 2nd ed., revised. and additional - M.: UNITI-DANA, 2002. - 447 p.
3. Shulyak P.N. Financial management / Tutorial- M.: Ed. House "Dashkov and K", 2000. - 752 p.
4. For the preparation of this work, materials from the site http://www.vestnik.fa.ru/ 19.01.2012, 14.50 were used.
5. Rassolov I.M. Management in the field of entrepreneurship. - M.: IKAR, 2002. - 442 p.
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The objectives of the lecture: the study of financial relations,
Arising in entrepreneurial
activities; funding sources
Entrepreneurial activity.
Questions
1 The financial environment of the enterprise,
2 Sources of business financing.
1. An entrepreneurial type enterprise is an element economic system and enters into certain relationships with business partners, budgets of various levels, owners of capital and other entities. Entrepreneurial activity is carried out within a certain financial system, which consists of a number of institutions and markets serving organizations, individuals and the state.
In the process of formation and use of financial resources, the enterprise has financial relations with other market entities. It is these relationships that constitute the essence of enterprise finance. Enterprise Finance represent monetary relations arising in the process of its production economic activity and related to the formation and distribution of its financial resources. Figure 1 shows the enlarged groups of financial relations of the enterprise and the cash funds accompanying them. Main directions financial activities any economic unit - the formation and use of monetary funds, through which the production and economic activities of the enterprise are provided with cash and simple and expanded reproduction is carried out.
The implementation of financial relations implies that the enterprise has financial resources. Financial resources- this is a set of funds in the form of income and external receipts intended to fulfill financial obligations and incur costs to ensure expanded reproduction. The formation of financial resources is carried out from various sources, which can be divided into internal and external. Internal sources are formed at the expense of own and equivalent funds and are associated with the results of management, external - sources of resources for the enterprise from the outside. The composition of financial resources coming from internal and external sources is shown in Figure 1.
Figure 1– Financial relations of the enterprise and monetary funds
Figure 2 - Composition of financial resources
2 . The main forms of business investment are credit, pledge, leasing and factoring. In Kazakhstan, unlike most developed countries When speaking of credit institutions, we mean mainly banks. Attracting bank lending (for industrial and social needs) is carried out with strict observance of certain principles: repayment, payment and urgency, which are the main element of the lending system, as they reflect the essence and content loan.
The repayment of a loan means the obligatory payment of the principal debt to the creditor on the agreed terms. The urgency of the loan means that the repayment of the borrowed funds to the lender should not be carried out at any time suitable for the borrower, but at a predetermined date for repaying the loan. The term of the loan is the maximum time during which the loan funds are at the disposal of the borrower. Violation of this principle by the borrower entails the application of certain sanctions in the form of an increase in the interest charged, and then the presentation of financial claims in court.
For the provision of a bank loan, as a rule, a fee is charged in the form of interest. The interest rate is set by the parties under the loan agreement.
In addition to the main ones, there are three additional principles of lending:
- securing a loan;
- target nature of the loan;
- differentiated nature of the loan.
In world practice, the following types of loans are distinguished: banking, commercial, consumer, state, international and usurious.
A loan, as a rule, is classified according to several basic features, the most important of which include the category of the lender and the borrower, as well as the form in which the loan is provided. The classification of bank loans is shown in Figure 3.
One of the most serious problems that commercial banks face is the risk of default on loans. Banks seek to minimize this risk by using various methods of securing (guaranteeing) the return of bank loans. Many firms that are unable to obtain unsecured loans are forced to borrow money against pledge. Loan guarantee (collateral) means assets (property) provided by the borrower as collateral to secure loan repayment. If the borrower is unable to repay the debt, the lender can sell the collateral and pay off the debt.
The value of collateral from the point of view of the lender varies depending on a number of factors: the degree of liquidity of the collateral, the life of the collateral, the main (basic) degree of risk associated with the collateral. All this, in turn, determines the potential amount of financing that a company can receive from a lender.
Figure 3 - Classification of bank loans
A purely theoretical secured (or asset-based) loan is a loan whose payments are guaranteed by any assets or property of the borrower. However, in the case of a short-term loan, accounts receivable and inventory are used as collateral.
Loans secured by collateral accounts receivable. One of the firm's most liquid assets is its accounts receivable. Therefore, they are the ones who provide the maximum guarantee on short-term loans that lenders seek.
When evaluating a loan application, the lender analyzes the quality of the firm's receivables and determines how much it can lend against the collateral. The higher the quality of a firm's receivables, the higher the percentage of its face value declared as collateral that a lender will agree to lend. In this case, the lender is not obliged to accept as collateral all accounts receivable by the borrower. As a rule, accounts of companies with a low credit rating or no such rating at all are rejected. In addition, based on analysis of the time interval between the date of sale and the current moment invoices that are overdue, for example by one month, are also often not accepted. Further, government and foreign accounts are usually considered unsuitable. Depending on the quality of the accepted invoices, the lender usually lends money in the amount of 50 to 80% of their face value.
TOPIC 3. FINANCIAL RESOURCES AND CAPITAL OF THE CORPORATION
Corporation Financial Resources- is a set of own funds and proceeds of borrowed and borrowed funds intended to fulfill financial obligations, finance current costs and costs associated with the expansion of capital. They are the result of the interaction of receipt, expenditure and distribution of funds, their accumulation and use.
^ According to the sources of education, financial resources are divided into own (internal) and attracted on different terms (external), mobilized in the financial market and received in the order of redistribution (Fig. 3.1).
The main share in its own financial resources is the profit remaining at the disposal of the enterprise. The second most important source of own financial resources are depreciation charges.
It should be remembered that not all profit remains at the disposal of the enterprise, part of it in the form of taxes and other tax payments goes to the budget. The profit remaining at the disposal of the organization is distributed by the decision of the governing bodies for the purpose of accumulation and consumption. The profit allocated for accumulation is used for the development of production and contributes to the growth of the property of the enterprise. Profit directed to consumption is used to solve social problems.
Depreciation deductions represent the monetary value of the cost of depreciation of the main production assets and intangible assets. They are of a dual nature, since they are included in the cost of production and then, as part of the proceeds from the sale of products, they go to the company's current account, becoming internal source financing of both simple and expanded reproduction.
Rice. 3.1. The composition of the financial resources of the enterprise (corporation)
Attracted, or external, sources of formation of financial resources can be divided into own, borrowed, received in the order of redistribution and budget appropriations. This division is due to the form of capital investment. If external investors invest money as entrepreneurial capital, then the result of such an investment is the formation of attracted own financial resources.
^ 3.2. Essence, meaning and classification of capital
The most complete classification of capital has the following form.
1. By belonging to the enterprise distinguish between own and borrowed types of its capital.
Equity capital characterizes the total value of the enterprise's funds owned by it and used by it to form a certain part of its assets. This part of the assets, formed from the equity capital invested in them, is the net assets of the enterprise.
Borrowed capital characterizes funds or other property values attracted to finance the development of an enterprise on a repayable basis. All forms of borrowed capital used by the enterprise represent its financial obligations, subject to repayment within the stipulated time.
^ 2. By purpose of use As part of the enterprise, the following types of capital can be distinguished: productive, loan and speculative.
Productive capital characterizes the funds of the enterprise invested in its operating assets for the implementation of production and marketing activities.
Loan capital is that part of it that is used in the process of investing in monetary instruments (short-term and long-term deposits in commercial banks), as well as in debt stock instruments (bonds, certificates of deposit, bills, etc.)
Speculative capital characterizes that part of it that is used in the process of speculative (based on the difference in prices) financial transactions (acquisition of derivatives for speculative purposes, etc.).
^ 3. By form of investment distinguish between capital in monetary, tangible and intangible forms used to form the authorized capital of the enterprise. Capital investment in these forms is permitted by law when creating new enterprises, increasing the volume of their authorized funds.
4^ . By investment object allocate fixed and circulating types of capital of the enterprise.
Fixed capital characterizes that part of the capital used by the enterprise, which is invested in all types of it outside current assets(and not only in fixed assets, as is often treated in the literature).
Working capital characterizes that part of it that is invested by the enterprise in its current assets.
^ According to the form of being in the process of circulation, i.e. depending on the stages of the general cycle of this circuit, the capital of the enterprise is distinguished in its monetary, production and commodity forms.
^ By type of ownership identify private and public capital invested in the enterprise in the process of forming its authorized capital. This division of capital is used in the process of classifying enterprises by ownership.
^ By organizational and legal forms activity, the following types of capital are distinguished: share capital (the capital of enterprises created in the form joint-stock companies); share capital (capital of partner enterprises - companies with limited liability, limited partnerships, etc.) and individual capital (capital of individual enterprises - family, etc.).
^ By the nature of use in the economic process in the practice of financial management, working and non-working types of capital are distinguished.
Working capital characterizes that part of it that is directly involved in generating income and ensuring the operating, investment and financial activities of the enterprise.
Non-working (or "dead") capital characterizes that part of it that is invested in assets that are not directly involved in the implementation of various types of economic activities of the enterprise and the formation of its income. An example of this type of capital is the company's funds invested in: unused premises and equipment; inventories for discontinued products; finished products, which is completely absent from the demand of buyers due to the loss of its consumer qualities, etc.
^ 9. By the nature of use by owners allocate consumed (“eat”) and accumulated (reinvested) types of capital.
Consumed capital, after its distribution for the purpose of consumption, loses the functions of capital. It represents the disinvestment of an enterprise carried out for consumption purposes (withdrawal of part of the capital from non-current and current assets in order to pay dividends, interest, meet the social needs of staff, etc.).
Accumulated capital characterizes various forms of its growth in the process of profit capitalization, dividend payments, etc.
^ 10. By sources of attraction distinguish between national (domestic) and foreign capital invested in the enterprise. This division of the capital of enterprises is used in the process of their respective classification.
^ 3.3. Capital structure and its price
Capital structure is the ratio of own and borrowed funds of a long-term nature. The capital structure determines many aspects of the enterprise and has a direct impact on its financial results. Capital structure management is one of the most important and complex tasks of financial management. It consists in creating a mixed capital structure, representing such an optimal ratio of own and borrowed sources, which minimizes the total capital expenditures and maximized market price enterprises.
Discussions about the possibility and expediency of capital structure management have a long history. Scientists and practitioners offer two main approaches to this problem:
traditional approach recognizes the optimal structure of capital, which minimizes its weighted average cost and, consequently, maximizes the market value of the organization;
Modigliani-Miller theory is based on the opposite: supporters of this approach argue that under certain conditions the value of the firm and the cost of capital do not depend on the structure of liabilities, therefore, the structure of funding sources cannot be optimized. In this case, the “principle of the pie” is applied to the structure of capital: it can be divided in different ways, but the value does not change. Despite the credibility of this approach, there are many assumptions in the Modigliani-Miller model: in particular, agency costs and the so-called costs of financial difficulties, which, for example, in case of bankruptcy, reach 20% of the company's value, are ignored.
The development of the Modigliani-Miller theory in terms of accounting for agency costs and the costs of financial difficulties led to the emergence compromise model, according to which the attraction of borrowed funds, contributing to the minimization of the weighted average cost of capital, at a certain stage increases the value of the company. However, as risk increases, “the costs associated with agency relationships and financial difficulties increase, which offsets the positive effect of debt financing. An increase in the degree of risk is not always acceptable to owners. The decrease in the weighted average cost of capital, due to the attraction of cheap sources of financing, is adjusted by the risk class, as a result of such an adjustment, the market value of the company remains unchanged.
It should be noted that all concepts of the capital structure can be implemented only if there is a developed securities market, a high share of equity capital and developed statistics on operations in the stock market.
^ Cost of capital calculated as a weighted average of the various components of equity such as debt, preferred shares, common shares and retained earnings. Each constituent element of capital has a value component. The cost of capital is calculated as a percentage and is determined by dividing the amount of funds paid for the use of financial resources by the amount attracted from given source capital. Knowing the cost of capital raised from different sources, you can determine the weighted average cost of capital of the company WACC (Weighted Average Cost of Capital) and see how to use this cost, comparing it with different rates of return, to make decisions on investment projects.
^ Weighted average cost of capital, attracted by the organization open market, can be expressed by the formula:
WACC=( 1 – T) × Wd × Cd + Wpr × Cpr + We × Ce,
Where Wd (weiht of debt) – share of borrowed funds;
wpr (weiht of preferred shares) - share of preferred capital;
We (weiht of common equity) - share of own capital;
Cd (cost of debt) – cost of borrowed funds;
Cpr (cost of preferred capital) – value of preferred capital;
Ce (cost of common equity) - cost of own capital;
(1 – T) (tax shelter) – tax shield.
In this case, only that part of the capital that the organization attracts in the market is reflected. But the other part of the capital, which is formed from the internal sources of the organization, is by no means free for it. If in the first part the capital for the organization acts as a commodity, then in the second case it acts as a factor of production, which, as you know, also has a value.
In this regard, it is necessary to consider the elemental cost of capital of the organization. The total cost of capital of the organization (ko) will include the following components: the cost of preferred shares (kp), the external cost of capital of the organization or the cost of issuing new ordinary shares (k e), value of retained earnings (or intrinsic cost of capital (ks)), cost of borrowed capital, or cost after tax effects (k d).
Preferred share price(k p) determined by dividing the annual dividend of the preferred share (dp) on net income from the sale of preferred shares (R) in the following way:
^ Common stock value(k e) usually perceived as the required rate of return of the investor per ordinary share of the organization. There are two widely used methods for calculating share capital represented by common stock: the Gordon economic growth model and the fixed asset valuation model (MEV).
^ Gordon Growth Model is expressed by the formula
Where P o - the value (or market price) of an ordinary share;
D1– dividends to be received in one year;
r- the required rate of return of the investor;
g- growth rate (taken constant over time).
Solving the equation of this model for r, we get the formula for calculating the cost of an ordinary share:
Symbol r is replaced by k e to show that this formula is used to determine the cost of capital.
If f the cost of issuing a loan as a percentage, the formula for calculating the cost of a new ordinary share will look like this:
^ Model for assessing the profitability of financial assets CAPM (Capital Asset Pricing Model). To use this alternative method of valuing a common stock, you must:
2) determine the coefficient β of the stock, which is an indicator of systematic (or non-diversified) risk;
3) determine the rate of return on the portfolio of securities ( rm), such as Standard & Poor's 500, Stock Composite Index, or Dow Jones Industrials 30;
4) estimate the required rate of return per share of the company using the equation
k e =rf + β(rm –rf)
Cost of retained earnings(k s) is closely related to the value of existing holdings of common stock, since the value of equity capital acquired from retained earnings is the same as the rate of return required by investors on the entity's common stock.
^ Earnings per share model. This equity valuation model is based on earnings per share rather than dividends. Many investors believe that it is earnings per share that reflects the real income received by shareholders, regardless of whether it is paid V in the form of dividends or reinvested in order to bring benefits to investors in the future. Investors keep a close eye on earnings per share, which is reflected in the accounting documents of the company, and managers are trying not to create situations that lead to a drop in this indicator.
We calculate earnings per share using the formula:
Ce = EPS / Rt
Where EPS (earnings per share) earnings available to ordinary shareholders per ordinary share;
Rt (market price) - market price of an ordinary share.
Questions discussed in the practical lesson:
Sources of financing for current activities.
Sources of financing investment and financial activities of an economic entity.
Own, borrowed and borrowed funds
Net assets and features of their definition
The amount of capital, opportunities and prospects for the company's activities
The price of sources of equity capital.
Borrowing price.
concept marginal price capital
Capital structure theories
Topics of reports (scientific abstracts):
Structure of financial resources of corporations.
Monetary funds: features of their formation.
Reserves of enterprises (corporations): features of their formation.
Methods of mobilization of financial resources by corporations in the financial market.
Weighted average and marginal cost of capital
Comparative characteristics of approaches to the formation of the capital structure
Methods of financing the activities of corporations, their advantages and disadvantages
Features of managing the capital of an organization (corporation)
Enterprise financial resources is the money at the disposal of a particular economic entity. Financial resources reflect the process of formation, distribution and use of enterprise income. Financial resources ensure the circulation of fixed and working capital of the enterprise, relationships with the state budget, banks and other organizations.
The sources of financial resources of the enterprise are:
- - own funds;
- - borrowed funds.
Own funds are formed from the authorized capital, additional capital, reserve capital, retained earnings, depreciation fund of the enterprise, charitable, sponsorship contributions, targeted financing and other sources.
Own capital (funds) is formed from the moment the enterprise is established from the contributions of the founders or by subscribing for shares and takes the form of authorized capital. Authorized capital funds are directed to the acquisition of fixed assets and the formation working capital necessary for the normal functioning of the enterprise. The organization of the authorized capital, its effective use is one of the main and most important tasks financial services enterprises.
The authorized capital of the enterprise determines minimum size his property guaranteeing the interests of his creditors.
In the process of production and economic activity, the enterprise, using the initial capital, creates value, expressed in the price of products sold. After the sale of products, the value takes on a monetary form - the form of revenue, which is divided into qualitatively different components. Part of the company's revenue is used to reimburse the invested costs (purchase of materials, fuel, components, wages of employees, etc.), which take the form of cost. Prior to the receipt of revenue, these costs are financed from the working capital of the enterprise advanced into production.
If the revenue exceeds the cost, the financial result indicates a profit. The profit received by the enterprise does not remain completely at its disposal: part of it in the form of taxes goes to the budget. The profit remaining at the disposal of the enterprise is the main source of financing the needs and development of the enterprise, as well as the formation of reserve capital.
In addition to its own funds, the enterprise attracts borrowed financial resources, since it cannot always cover its needs only from its own sources.
Borrowed funds are loans, loans provided by banks and other organizations, temporary financial assistance to other enterprises, the issue of securities for specific projects, bonded loans and other sources.
Borrowed funds for the enterprise are a paid source of financing and are returned at the expense of the enterprise's profit.
In real activity, it is necessary to understand that both in Russia and in any part of the world there are not enough sources of financial resources, and therefore such sources choose only more profitable projects, taking into account all possible risks.
An option to solve financial problems may be to change the business scheme itself, for example: refuse to buy and rent. Such a change may increase the cost of obtaining resources, but eliminates the need for external funding.
The most common ways to raise finance for small businesses today are:
- - bank loans;
- - loans from specialized business support funds, if such funds have been created in the region;
- - microcredits of special organizations with a simplified form of decision-making on lending;
- - credits (cash and commodity) of suppliers and buyers;
- - participation in the company of third parties (contributions of relatives, friends, acquaintances, sometimes - Russian or more often - foreign venture funds in the authorized capital);
- - tax and investment tax credit;
- - equipment leasing;
- - grants from foreign donor organizations (funds) supporting the development of private business in the Russian Federation.
Not the fact that leasing is beneficial to any enterprise. There are times when leasing is less profitable than other forms of financing. There are several reasons for this.
First, the terms of leasing contracts, as well as the terms of various loan agreements, differ significantly from each other. So, when comparing the terms of a leasing deal offered by a commercial leasing company with a preferential loan from the local administration, leasing most often loses.
Secondly, the profitability of leasing follows mainly from savings on income tax, so that if the company is not profitable, leasing will cost him more.
In this regard, it is necessary to consider leasing as a possible alternative to other methods of acquiring property.
A tax (investment tax) credit is a tax deferral of up to 1 year (up to 5 years), which is equivalent to obtaining a loan, however, obtaining such a deferment is not easy and requires the circumstances specified in the Tax Code.
Federal, regional and local authorities within the framework of programs for the development of small business provide for the allocation of preferential loans.
Now that we know what kind of funding is available, let's talk a little about the people who provide such funding. In other words, let's ask ourselves: "What kind of investors are there?"
Before you answer, you need to know what investors want. The answer is simple: investors need income. However, like many other simple answers, this answer is fundamentally incomplete.
Most investors believe that there is a direct relationship between the return and riskiness of investments. In other words, the greater the expected income, the less likely it is to receive it. It is necessary to keep this in mind and never offer the investor more than is really necessary for reasons of riskiness. On the other hand, it is important to understand that risk perception may differ from the investor's perception of risk. Now we can actually talk about investors.
Commercial banks
Like any other investor, a commercial bank is interested in reducing its credit risks. And the company can help him with this. If an enterprise has a large client, from which payments are consistently received under a long-term agreement, there is a real opportunity to obtain a bank loan secured by future payments under this agreement.
Such lending has very serious prospects for enterprises that conduct a large volume of non-cash settlements with the population (telephone exchanges, electricity and gas suppliers).
The creditor bank is quite capable of assessing the volume and stability of such payments in the past and making a fairly accurate forecast of these indicators for the future.
investment banks
An investment bank has a very precise definition - it is an investment institution that is engaged in the placement of new issues of securities. It is more correct to consider an investment bank not as an investor, but as a financial intermediary. A company wishing to place (i.e. sell) a new issue of its shares or bonds may engage an investment bank to conduct a public offering or private placement of that issue. Very often, an investment bank is involved in financial projects at an earlier stage of their implementation, so that the investment bank's specialists help the company's management decide what kind of securities and when to issue in order to attract the necessary amount of financing on the most favorable terms.
There are two mechanisms of interaction between the company - the issuer and the investment bank.
The investment bank buys the entire issue from the issuer at the negotiated price and then resells it to investors at a higher (if possible) price. The difference between these two prices is the income of the investment bank.
The investment bank acts as the issuer's agent, receiving in return a certain percentage of the total value of the placed issue.
merchant banks
A merchant bank is a phenomenon so far unprecedented in Russia. A merchant bank is similar to both a commercial bank and an investment bank. Commercial banks have a very large capital, which allows them to acquire securities not only for resale, but also as investment objects. In addition, commercial banks provide settlement and credit services common in the practice of commercial banks.
Investment funds. There are a great many different organizational and legal forms of investment funds. It is customary to distinguish two main categories of investment funds: open and closed.
Open funds allow the increase and decrease in the share of investors in them at any time. That is why open-ended funds are most attractive to small investors who cannot contribute significant funds to the fund and do not want to be bound by promises to keep these funds in the fund for a significant period. Accordingly, open-ended funds seek to invest their investors' money in the most liquid financial instruments, which, if necessary, are very easy to turn into money.
Closed-end funds, on the contrary, set certain periods of time during which the investor has no right to withdraw his money from the fund. Many closed-end funds have very high investment requirements, so they cater primarily to institutional clients. Closed-end funds do not place high requirements on the current liquidity of investments and therefore often achieve higher returns in the long run.
It is important to remember that the vast majority of investment funds have an investment declaration, which states in which financial instruments the fund has the right to invest. In world practice, funds of government bonds, corporate bonds, money market, real estate and stocks are known. There are also balanced funds that invest in several types of financial instruments.
Strategic investors
All the investors described above have one thing in common - they are purely financial investors. Financial investors, as a rule, do not seek to acquire large (especially controlling) stakes, do not understand the specifics of the operation of the enterprises in which they invest, and do not interfere in the operational management of these enterprises. All this is for strategic investors.
Somewhere in the middle between financial and strategic investors are venture capitalists and venture capital funds. Such investors usually seek to acquire a significant stake in the enterprise (usually 20-40%, sometimes more).
Venture investor, as a rule, does not have its own plan for the development of the enterprise, but requires the management of the enterprise to develop such a plan and generally adhere to it during the investment cycle. The investment cycle of a venture investor in most cases is from three to ten years. The venture investor hopes that during this time the company will be able to significantly increase its turnover and profits, the market value of the company will increase significantly and the investor will be able to profitably sell his stake in this company.
Financing refers to the process of generating funds or, more broadly, the process of forming the capital of an enterprise in all its forms.
Classification of funding sources is varied and can be produced according to the following features:
- - Ownership and borrowed sources of financing are distinguished by property relations.
- - According to the types of property, state resources, funds of legal entities and individuals and foreign sources are allocated.
- - In terms of time characteristics, funding sources can be divided into short-term and long-term.
As part of internal sources of formation of own financial resources. The main place belongs to the profit remaining at the disposal of the enterprise - it forms the predominant part of its own financial resources.
Depreciation charges also play a certain role in the composition of internal sources; although they do not increase the amount of equity capital of the enterprise.
Other internal sources do not play a significant role in the formation of the enterprise's own financial resources.
In the composition of external sources of formation of its own financial resources, the main place belongs to the attraction of additional share or equity capital by the enterprise. For individual enterprises, one of the external sources of generating their own financial resources may be the gratuitous financial assistance provided to them (as a rule, such assistance is provided only to individual state enterprises of various levels).
In the conditions of transition to the market, non-traditional instruments for financing activities are also beginning to be used. Russian enterprises. These include commercial loans, options, mortgage transactions, factoring transactions, leasing, etc.
Currently, financing of enterprises is in an unsatisfactory state due to the lack of own funds for self-financing, the lack of sufficient state financial support, the high cost and riskiness of innovation, the long-term payback nature of innovative projects, and the dominance of conservative investors instead of aggressive ones. For further successful development Russian companies it is necessary to solve two problems: the first is to optimize the sources of financing for the development of new projects; the second is to learn how to select such innovative projects which will bring real returns even in times of crisis.
Financing of entrepreneurial firms is a set of forms and methods, principles and conditions of financial support for simple and expanded reproduction. Financing refers to the process of generating funds or, more broadly, the process of forming the company's capital in all its forms. The concept of "financing" is quite closely related to the concept of "investment"; If financing is the formation of funds, then investing is their use. Both concepts are interconnected, but the first precedes the second. It is impossible for a firm to plan any investments without sources of financing. At the same time, the formation of the company's financial resources occurs, as a rule, taking into account the plan for their use.
When choosing sources of financing for an enterprise, it is necessary to solve five main tasks:
1) determine the need for short- and long-term capital;
2) identify possible changes in the composition of assets and capital in order to determine their optimal composition and structure;
3) ensure constant solvency and, consequently, financial stability;
4) use own and borrowed funds with maximum profit;
5) reduce the cost of financing business activities.
Sources of financing of the enterprise are divided into internal (own capital) and external (borrowed and borrowed capital). Internal financing involves the use of own funds and, above all, net profit and depreciation.
Financing from own funds has a number of advantages:
P due to replenishment from the profit of equity capital, the financial stability of the enterprise increases;
P formation and use of own funds is stable;
Expenses on external financing (on servicing debt to creditors) are minimized;
simplifies the adoption process management decisions for the development of the enterprise, 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.
Internal sources of financing of the enterprise
The main internal sources of financing for the activities of entrepreneurial firms are profit and depreciation. Profit as an economic category reflects the net income created in the sphere of material production in the process of entrepreneurial activity and performs certain functions.
First of all, profit is economic effect obtained as a result of the activities of an entrepreneurial firm.
Profit also performs a social function, as it is one of the sources for the formation of budgets at different levels. It enters the budgets in the form of taxes and, along with other revenues, is used to finance social needs, ensure that the state performs its functions, public investment, production, scientific and technical and social programs. social function profit is also manifested in the fact that it serves as a source charitable activities a firm aimed at financing individual non-profit organizations, social institutions, providing material assistance to certain categories of citizens.
The stimulating function of profit is manifested in the fact that profit is both a financial result and the main element of the company's financial resources. Indeed, profit is the main internal source of formation of the company's financial resources that ensure its development. The higher the level of profit generation of an enterprise in the course of its economic activity, the less its need to attract financial resources from external sources and the higher the level of self-financing of the enterprise's development, ensuring the implementation of the strategic goals of this development. At the same time, unlike other internal sources of formation of the company's financial resources, profit is a constantly reproducible source, and its reproduction in conditions of successful management is carried out on an expanded basis.
Profit is the main source of increasing the market value of the company. The ability to self-increase the cost of capital is provided by capitalizing a part of the profit received by the firm. The higher the amount and level of capitalization of the profit received by the firm, the more its value increases. net assets, and, accordingly, the market value of the company as a whole, determined during its sale, merger, acquisition, and in other cases.
Profit is the main protective mechanism that protects the firm from the threat of bankruptcy. Although the threat of bankruptcy may also arise in the conditions of a profitable economic activity of the company, but other things being equal, the company is much more successful and faster out of the crisis with a high level of profit. Due to the capitalization of the profits received, the company can quickly increase the share of highly liquid assets, increase the share of equity with a corresponding decrease in the volume of borrowed funds, and also form reserve financial funds.
Thus, in a market economy, the value of profit is enormous. The desire to make a profit directs commodity producers to increase the volume of production needed by the consumer, reduce production costs. For entrepreneurial firms, profit is an incentive to invest in those areas of activity that make a profit.
Profit is the end result of the production and economic activities of the company, an indicator of its effectiveness, a source of funds for investment, the formation of special funds, as well as payments to the budget. Making a profit is the main goal of an entrepreneurial organization.
The total amount of profit (loss) received by the enterprise for a certain period, i.e. gross profit, comprises:
P profit (loss) from the sale of products, services, work performed;
P profit (loss) from other sales;
P profit (loss) from non-sales operations.
Profit (loss) from the sale of products (works, services). It is defined as the difference between the proceeds from the sale of products (works, services) without value added tax and excises and the costs of production and sales included in the cost of products (works, services).
Profit (loss) from other sales. An enterprise may have excess material assets as a result of changes in the volume of production, shortcomings in the supply system, sales, and other reasons. Long-term storage of these valuables in conditions of inflation leads to the fact that the proceeds from their sale will be lower than the purchase prices. Therefore, from the sale of unnecessary inventory items, not only profit is generated, but also losses.
With regard to the sale of surplus fixed assets, the profit from this sale is calculated as the difference between the sale price and the initial (or residual) value of the funds, which is increased by the corresponding index, legally established depending on the inflation rate.
Profit (loss) from non-sales operations. It is calculated as the difference between income and expenses on non-operating operations. Income (expenses) from non-trading operations includes income received from equity participation in the activities of other enterprises, from the lease of property, income (dividends, interest) on shares, bonds and other securities owned by the enterprise, profit received by the investor when execution of a production sharing agreement, as well as other income (expenses) from operations not directly related to the production of products, services, performance of work, sale of property.
An important role in the composition of internal sources of financing is also played by depreciation deductions, which are a 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. Objects for depreciation are fixed assets that are in the company on the right of ownership, economic management, operational management.
Attraction of bank loans
The needs of the enterprise in lump-sum funds are also met by obtaining a loan from a bank. Lending is one of the forms of financial support for entrepreneurial activity. It is carried out on the basis of establishing financial relationships between the enterprise and credit institution through the conclusion of relevant agreements between them. The main one is the loan agreement, which creates the legal prerequisites for the security of loans, their timely repayment and payment of interest.
In economic theory, loan capital is traditionally considered as a set of funds transferred on a repayable basis for temporary use for a fee in the form of interest. Based on this, a bank loan is funds provided by a bank entrepreneurial firm for the intended use for a specified period at a certain percentage. Lending to enterprises is carried out on the basis of certain principles.
The principle of repayment means that the financial resources received from the lender are subject to return or repayment by the borrower in full.
The principle of urgency means the need to repay the loan at a precisely defined time, and not at any time convenient for the borrowing company, that is, the loan is issued for a certain period. The term of using the loan depends on the time of existence of the actual need for the loan.
The principle of payment means that the loan is provided to the borrower on the condition of its return with interest, which form the profit of the credit institution.
The principle of material security of the loan expresses the need to ensure the protection of the property interests of the lender in the event of a possible violation by the borrowing company of its obligations and finds practical application in such forms of lending as loans secured or secured by financial guarantees. 176
The principle of the targeted nature of the loan applies to many lending operations and is expressed in the need for targeted use of funds received from the lender. This principle finds practical expression in the relevant section of the loan agreement, which establishes the specific purpose of the loan. Violation of the obligation to use the loan for the intended purpose may be the basis for early withdrawal of the loan or the introduction of an increased loan interest.
Main types of bank loan
The peculiarity of bank lending at the present stage of development of the Russian economy is that this loan has a broad target orientation and is attracted in a wide variety of forms. In recent years, both domestic and foreign banks have been involved in lending to entrepreneurial firms. It is possible to classify a bank loan on the basis of various features, which are shown in Fig. 4.3.
On the basis of the loan repayment period specified in the loan agreement, the following are distinguished: on-call loans;
Short-term loans;
Medium-term loans;
Long-term loans.
A feature of an on-call loan is that it is provided to the borrowing company without specifying the period of its use with the borrower's obligation to repay it at the first request of the lender. Such a loan is subject to repayment within a fixed period after receipt of an official notification from the lender. Currently, on-call credit is almost never used not only in Russia, but also in most countries, as it requires relatively stable conditions in the loan capital market and in the economy as a whole.
Long-term loans are used, as a rule, for investment purposes. Like medium-term ones, they serve the movement of fixed assets, differing in large volumes of transferred credit resources.
According to the method of repayment of the loan, there are:
P loans repaid in a lump sum;
Loans repaid in installments.
Loans repaid in a lump sum by the borrowing firm are the traditional form of repayment of short-term loans. In the case of long-term, and sometimes medium-term loans, such a method of loan repayment as installment is used. In this case, the specific conditions for the return are determined by the loan agreement.
According to the method of collecting loan interest, there are:
P loans, the interest on which is paid at the time of its total repayment;
P loans, the interest on which is paid in equal installments by the borrower during the entire term of the loan agreement;
P loans, the interest on which is withheld by the bank at the time of the direct issuance of a loan to the borrowing company.
The first form of charging a loan interest is traditional for a market economy when issuing short-term loans and is the most functional in terms of ease of calculation. The second form is used for medium-long-term lending. The last form of levying loan interest for a developed market economy is not typical and is used in very rare cases.
Depending on the availability of security, there are:
P trust loans (bank);
P secured loans;
P loans secured by financial guarantees from third parties.
The only form of security for a trust loan is a loan agreement. Such loans are usually used in the process of lending to regular customers who enjoy the full confidence of the bank. As a rule, a bank loan is provided by a commercial bank that provides settlement and cash services to the company. Although formally it is unsecured, it is actually secured by the size of the company's receivables and its funds in the settlement and other accounts in the same bank.
Secured loans are the main type of modern bank credit. In domestic conditions, the main problem in obtaining secured loans is the procedure for assessing the value of property due to the incompleteness of the process of forming the mortgage and stock market. Loans issued under the financial guarantees of third parties have become widespread, primarily in the field of long-term lending.
The real expression of a financial guarantee is a legal obligation on the part of the guarantor to compensate the damage actually caused to the lender if the borrower violates the terms of the loan.
According to the intended purpose, they distinguish:
P loans of a general nature;
Purpose loans.
The first loans are used by the borrower at his own discretion to meet the needs for financial resources. IN modern conditions farming are very limited. Basically, loans issued by banks are targeted.
Commercial lending to an organization
In the process of entrepreneurial activity, organizations carry out mutual lending. This happens due to the time difference between the shipment of products, goods, the performance of work, the provision of services and their actual payment. Therefore, in the cash turnover of enterprises, along with bank loans, there are funds from other creditors, including supplying enterprises, regular business partners in commercial transactions.
In Art. 823 of the Civil Code of the Russian Federation establishes that contracts, the execution of which is associated with the transfer of money or other things determined by generic characteristics to the ownership of the other party, may provide for the provision of a loan, including in the form of an advance payment, advance payment, deferment and installment payment for goods, work or services.
With a commercial loan, a purchase and sale transaction is associated with a credit transaction; The end of the trading operation coincides with the beginning of the credit transaction, which will be completed when the borrower repays the debt on the loan. Thus the movement of commodity-capital is accompanied by the movement of loan capital. Thus, commercial credit is a commodity form of credit. For the supplier enterprise, the credit transaction not only speeds up the implementation (the buyer purchases the goods), but also brings additional income in the form of interest, which is included in the price of goods sold and the amount of the bill.
The use of a commercial loan facilitates the sale of goods, accelerates the turnover of working capital, which leads to a decrease in the need of the enterprise for credit resources and cash. In addition, the cost of a commercial loan, as a rule, is significantly lower than the cost of a financial loan in all its forms. The advantages of this type of lending also include the fact that it is characterized by a fairly simple mechanism for registration in comparison with other types of loans that entrepreneurial firms can use. The advantages of a commercial loan also lie in the speed of providing funds in a commodity form, in expanding the possibilities for enterprises to maneuver working capital, in providing financial support to enterprises to each other. For many small businesses, it is a commercial loan that is the most important source of financing.
The disadvantages of a commercial loan include the risk for the supplier when the price of the goods changes, the buyer fails to comply with the terms of payment, the bankruptcy of the buyer, as well as the fact that this type of loan is provided for a very short period, the period of its provision is usually limited to several months.
There are several distinctive features of a commercial loan that fundamentally distinguish it from a bank loan:
P in the role of a creditor in commercial lending are not specialized financial organizations, but entrepreneurial firms associated with the production or sale of goods or services;
P it is provided exclusively in commodity form;
П the average cost of a commercial loan is always lower than the average interest rate on bank loans for the relevant period of time;
The fee for commercial credit is usually included in the price of the goods, and is not determined specifically, for example, through a fixed percentage of the base amount.
In economic practice, there are several types of commercial loans, the main of which are shown in Fig. 4.4.
 Rice. 4.4. Main types of commercial credit |
A commercial loan with a deferred payment under the terms of the contract has become the most widespread in the economic practice of both domestic and foreign enterprises. This credit is subject to the terms of the contract for the supply of goods, which is concluded by the supplier and the buyer and does not require special registration. The supplier, after the shipment of the products, issues an invoice indicating the size, price, cost, terms of delivery and payment term. This invoice is for the buyer the basis for granting a loan.
Commercial loan for open account It is used in the economic relations of the company with its regular suppliers for multiple deliveries of a predetermined list of products in small batches. The conditions for providing such a commercial loan are also stipulated in the contract for the supply of products. At the same time, the supplier company relates the cost of shipped goods to the debit of the account opened for the buyer company, which repays its debt within the stipulated time.
A commercial loan with a bill of exchange. This method of obtaining a loan consists in the fact that the firm-buyer, having received the goods, issues a bill of exchange indicating the due date. This form of commercial credit is the most promising. The bill turnover on a commercial loan is serviced by promissory notes and bills of exchange.
A commercial loan in the form of a consignment is a type of commission transaction in which the supplier firm ships goods to a warehouse commercial enterprise with a mandate to implement it. Settlements with the supplier are carried out only after the delivered goods are sold.
It should be noted that in the Russian business environment, such a form of lending as a commercial loan is limited. Its spread is objectively hampered by factors such as unreliability of partnerships, shortcomings in commercial law, and inflation.
Investment tax credit
An investment tax credit is a form of external financing for the activities of entrepreneurial firms. In accordance with Art. 66 of the Tax Code of the Russian Federation, an investment tax credit is such a change in the tax payment deadline, 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, followed by a phased payment of the loan amount and accrued interest. This credit can be granted to an entrepreneurial firm for income tax, as well as for regional and local taxes for a period of 1 to 5 years. This form of credit can be granted to a company that is a taxpayer in the following cases:
When this company conducts research or development work or technical re-equipment own production, including those aimed at creating jobs for the disabled or protecting the environment from industrial waste pollution;
P in the implementation by this company of implementation or innovation activities, including the creation of new or improvement of applied technologies, the creation of new types of raw materials or materials;
In the event that this company fulfills a particularly important order for the socio-economic development of the region or provides especially important services to the population;
Fulfillment by the organization of the state defense order.
Factoring as a form of financing
One of the methods of financing entrepreneurial activity is factoring operations - a kind of trade and commission operation. Factoring is an assignment to a bank or a specialized factoring company of unpaid debt claims (receivables) arising between counterparties in the process of selling goods and services on a commercial loan, in combination with elements of accounting, information, marketing, insurance, legal and other services of the supplier company.
There are three parties involved in factoring transactions:
P factoring company or the factoring department of a bank - a specialized institution that buys from its clients claims against their buyers. In fact, there is a purchase of receivables and financing of client firms;
P client company (supplier of goods, creditor) - a company that enters into an agreement with a factoring company;
P firm-borrower - the buyer of the goods.
Factoring operations contribute to the acceleration of settlements, saving the company's working capital, as well as accelerating the turnover of the company's working capital. Factoring services are most effective for small and medium-sized firms that traditionally experience financial difficulties due to late repayment of receivables and which are limited in obtaining a bank loan.
Leasing as a type of investment activity
The legal basis for leasing is established by the Civil Code of the Russian Federation (Chapter 34, paragraph 6) and Federal Law No. 164-FZ of October 29, 1998 "On Financial Lease (Leasing)" (hereinafter referred to as the Law on Leasing). The law determines the legal status of subjects of leasing, forms, types and types of leasing, legal and economic foundations of leasing, measures of state support for leasing activities.
Leasing - a set of economic and legal relations arising in connection with the implementation of a leasing agreement, including the acquisition of a leased asset. Leasing activity - a type of investment activity for the acquisition of property and its transfer to leasing. The subject of leasing can be any non-consumable things, including enterprises and others. property complexes buildings, structures, equipment, vehicles and other movable and immovable property that can be used for business activities. The subject of leasing may not be land plots and other natural objects, the free circulation of which federal laws prohibited or for which a special treatment procedure is established.
Leasing agreement - an agreement under which the lessor (lessor) undertakes to acquire ownership of the property specified by the lessee (lessee) from the seller specified by him and provide the lessee with this property for a fee for temporary possession and use. The leasing agreement may provide that the choice of the seller and the acquired property is carried out by the lessor. The leasing agreement may include conditions providing for the provision of additional services and additional work. Additional services (works) are services (works) of any kind provided by the lessor both before the start of use and in the process of using the leased asset by the lessee and directly related to the implementation of the leasing agreement. The list, volume and cost of additional services (works) are determined by agreement of the parties.
Leasing is a direct investment activity.
The subjects of leasing are the lessor, the lessee, the seller (supplier). Lessor - an individual or legal entity that, at the expense of borrowed and (or) own funds, acquires property during the implementation of a leasing agreement and provides it as a leased asset to the lessee for a certain fee, for a certain period and under certain conditions in temporary possession and into use with or without transfer to the lessee of the ownership of the leased asset. Lessee - an individual or legal entity who, in accordance with the leasing agreement, is obliged to accept the object of leasing for a certain fee, for a certain period and under certain conditions for temporary possession and use in accordance with the leasing agreement.
Seller - a natural or legal person who, in accordance with the sale and purchase agreement with the lessor, sells to the lessor within the period specified in the contract the property that is the subject of leasing. The seller is obliged to transfer the object of leasing to the lessor or lessee in accordance with the terms of the contract of sale. The seller may simultaneously act as a lessee within the same leasing relationship.
The main forms of leasing are domestic leasing and international leasing. When implementing internal leasing, the lessor and the lessee are residents of the Russian Federation. In the event of international leasing, the lessor or lessee is a non-resident of the Russian Federation. Subleasing is a type of sublease of the subject of leasing, in which the lessee, under a leasing agreement, transfers to third parties (lessees under a subleasing agreement) for possession and use for a fee and for a period in accordance with the terms of the subleasing agreement the property previously received from the lessor under a leasing agreement and constituting the subject leasing. To transfer the subject of leasing to subleasing, the consent of the lessor, expressed in writing, is a prerequisite.
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