To properly organize financing for business activities, sources of financing should be classified. Note that the classification of sources of financing in Russian practice differs from foreign ones. In Russia, all sources of financing for entrepreneurial activities are divided into four groups:
1) own funds of enterprises and organizations;
2) borrowed funds;
3) raised funds;
4) funds from the state budget.

In foreign practice, enterprise funds and sources of financing its activities are classified separately. Since these issues are closely interrelated, let us consider them in more detail. One of the most common groupings of enterprise funds in foreign practice is presented in Diagram 1.

In this classification of enterprise funds, the main element is equity capital.

The structure of the enterprise's equity capital is presented in Diagram 2.
There is another option for classifying an enterprise’s funds, where all funds are divided into own and borrowed funds.

In this case, the company’s own funds include:
authorized capital (funds from the sale of shares and share contributions of participants or founders);
revenues from sales;
depreciation deductions;
net profit of the enterprise;
reserves accumulated by the enterprise;
other legal and individuals(targeted funding, donations, charitable contributions).

Funds raised include:
bank loans;
borrowed funds received from the issue of bonds;
funds received from the issue of shares and other securities;
accounts payable.

In foreign practice, there are different approaches to classifying sources of financing the activities of an enterprise.

According to one option, all sources of financing are divided into internal and external.

Internal sources of financing include the enterprise's own funds.

External sources include:
bank loans;
borrowed funds;
proceeds from the sale of bonds and other securities;
accounts payable, etc.

There is an option to divide funding sources into:
1) internal sources are expenses that the enterprise finances from net profit;
2) short-term financial resources are funds used to pay wages, payment for raw materials and supplies, various operating expenses. The forms of implementation of funding sources in this case may be as follows:
bank overdraft - an amount received from a bank in excess of the balance in the current account. Overdraft is payable upon request of the bank. This is usually the cheapest form of loan, the interest rate on it does not exceed 1-2% of the bank’s base discount rate;
bill of exchange (draft) - a monetary document according to which the buyer undertakes to pay the seller a certain amount within the period established by the parties. The bank discounts bills of exchange by providing their holders with a loan for the period until their maturity. As payment for a loan issued on a bill of exchange, the bank charges a discount (interest), the value of which changes daily. Bills of exchange are most often used in foreign trade payments;
acceptance credit is applied when a bank accepts for payment a bill of exchange issued in the name of its clients (resale of the right to collect debts - factoring). In this case, the bank pays the creditor the value of the bill minus the discount, and upon the expiration of its repayment period, collects this amount from the debtor;
commercial loan - the purchase of goods or services with a deferred payment for one to two months, and sometimes more. The use of a commercial loan is determined by the specific type of economic activity. The appeal to him depends on the speed of sale of the goods and the possibilities of deferring payments of the enterprise itself;
3) medium-term financial resources (from 2 to 5 years) are used to pay for machinery, equipment and research work.
The purchase of machinery, equipment and vehicles by an enterprise on credit occurs on fixed terms, secured by the purchased goods, with regular repayment of the loan in installments.

The group of medium-term financial resources includes the rental of machinery and equipment. Payment for the use of leased funds is made in regular installments, while ownership never passes to the debtor;
4) long-term financial resources (over 5 years) are used for the acquisition of land, real estate and long-term investments. The allocation of funds in this way is carried out as follows:
long-term (mortgage) loans - provided by insurance companies or pension funds cash on bail land plots, buildings for a period of 25 years;
Bonds are debt obligations with a set interest rate and maturity date. A significant portion of the bonds have a face value;
issue of shares - receipt of funds through sale various types shares in the form of closed or open subscription.

The emergence of such a classification of sources is associated with the peculiarities of intra-company planning abroad, which includes long-term, medium-term and short-term planning.

When determining the need for financial resources, the following points must be taken into account:
for what purpose and for what period (short-term or long-term) funds are required;
how urgently funds are required;
whether the necessary funds are available within the enterprise or will have to turn to other sources;
what are the costs of paying off debts?

Only after a detailed study of all points is the choice of the most acceptable source of funds made.

Coursework in enterprise economics

"External and internal sources

financing the activities of the enterprise"

Saint Petersburg

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

CHAPTER 1. Financial resources of the enterprise. . . . . . . . . . . . . . . . . . . . . . . . . . .4

CHAPTER 2. Classification of sources of financing. . . . . . . . . . . . . . . . . . 7

2.1. Internal sources of financing of the enterprise. . . . . . . . . . . . . . . . 8

2.2. External sources of financing for the enterprise. . . . . . . . . . . . . . . . . .12

CHAPTER 3. Managing sources of financing. . . . . . . . . . . . . . . . . . .16

3.1. The ratio of external and internal sources

in the capital structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

3.2. The effect of financial leverage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19

Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22

List of used literature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23

Application. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Introduction

Company is a separate technical, economic and social complex designed to produce benefits useful to society in order to make a profit. During its creation, as well as in the process of managing it, various issues are resolved, one of which is financing the activities of the enterprise, that is, providing the necessary financial resources for the costs of its implementation and development. Business entities receive these resources from various sources, without which no enterprise can exist and operate. And, therefore, it is not surprising that the issue of possible sources of financing is relevant today for many business entities and worries many entrepreneurs.

The purpose of the work is to study existing sources of funds, their role in the process of the enterprise’s activities and its development.

Setting priorities among sources of financing and choosing the most optimal sources is a problem for many organizations today. Therefore, in this work we will consider the classification of sources of financing the activities of an enterprise, the concept financial resources, closely related to these sources, as well as the ratio in the capital structure of equity and borrowed funds, which has a significant impact on the financial and economic activities of the enterprise.

Consideration of these aspects will allow us to draw conclusions regarding a given topic.

CHAPTER 1. Financial resources of the enterprise

The concept of financial resources is closely related to the concept of sources of financing the activities of an economic entity. Financial resources of the enterprise- this is a combination of own funds and receipts of borrowed and raised 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.

Financial resources play an important role in the reproduction process and its regulation, distribution of funds according to areas of their use, stimulate the development of economic activity and increase its efficiency, and allow monitoring the financial condition of an economic entity.

Sources of financial resources are all cash income and receipts that an enterprise or other economic entity has at its disposal in a certain period (or as of a date) and which are directed towards cash expenses and deductions necessary for production and social development.

Financial resources generated from various sources enable the enterprise to timely invest funds in new production, ensure, if necessary, expansion and technical re-equipment of the existing enterprise, finance scientific research, development, their implementation, etc.

The main areas of use of an enterprise’s financial resources in the process of its activities include:

Financing the current needs of the production and trading process to ensure the normal functioning of production and trading activities of the enterprise through the planned allocation of funds for main production, production and auxiliary processes, supply, marketing and sales of products;

Financing administrative and organizational measures to maintain a high level of functionality of the enterprise management system through its restructuring, allocation of new services or reduction of the management staff;

Investing in the main production in the form of long-term and short-term investments for the purpose of its development (complete renovation and modernization of the production process), creation of new production or reduction of certain unprofitable areas;

Financial investments are the investment of financial resources for purposes that bring the enterprise higher income than the development of its own production: the acquisition of securities and other assets in various segments of the financial market, investments in the authorized capital of other enterprises in order to generate income and obtain rights to participate in the management of these enterprises, venture financing, provision of loans to other companies;

The formation of reserves is carried out both by the enterprise itself and by specialized insurance companies and state reserve funds at the expense of regulatory contributions to maintain a continuous circulation of financial resources and protect the enterprise from unfavorable changes in market conditions.

Financial reserves are of great importance to ensure uninterrupted financing of the production process. In market conditions their role is significant. These reserves are capable of ensuring a continuous circulation of funds in the reproduction process even in the event of huge losses or the occurrence of unforeseen events. The enterprise creates financial reserves from its own resources.

Financial support for reproduction costs can be carried out in three forms: self-financing, lending and government financing.

Self-financing is based on the use of the enterprise's own financial resources. If its own funds are insufficient, it can either reduce some of its expenses or use funds mobilized in the financial market through transactions with securities.

Lending is a method of financial support for reproduction costs in which costs are covered by a bank loan provided on the basis of repayment, payment, and urgency.

State funding is provided on a non-repayable basis from budgetary and extra-budgetary funds. Through such financing, the state purposefully redistributes financial resources between production and non-production spheres, sectors of the economy, etc. In practice, all forms of cost financing can be applied simultaneously.

CHAPTER 2. Classification of sources of financing

The financial resources of an enterprise are transformed into capital through appropriate sources of funds. Today their various classifications are known.

Sources of financing can be divided into three groups: used, available, potential. The sources used represent a set of such sources of financing the activities of the enterprise that are already used to form its capital. The range of resources that are potentially real for use are called available. Potential sources are those that theoretically can be used for the functioning of commercial enterprises, in conditions of better financial, credit and legal relations.

One of the possible and most common groupings is the division of sources of funds by timing:

Sources of short-term funds;

Advanced capital (long-term).

Also in the literature there is a division of funding sources into the following groups:

Own funds of enterprises;

Borrowed funds;

Involved funds;

Budget allocations.

However, the main division of sources is their division into external and internal. In this version of the classification, own funds and budgetary allocations are combined into a group of internal (own) sources of financing, and external sources are understood as attracted and (or) borrowed funds.

The fundamental difference between the sources of own and borrowed funds lies in the legal reason - 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.

2.1. Internal sources of financing of the enterprise

The main sources of financing the enterprise's activities are its own funds. Internal sources include:

Authorized capital;

Funds accumulated by an enterprise in the course of its activities (reserve capital, additional capital, retained earnings);

Other contributions from legal entities and individuals (targeted financing, charitable contributions, donations, etc.).

Equity capital begins to form at the time of creation of the enterprise, when its authorized capital is formed, that is, the totality in monetary terms of contributions (shares, shares at par value) of the founders (participants) to the property of the organization upon its creation to ensure activities in the amounts determined by the constituent documents. The formation of authorized capital is associated with the peculiarities of the organizational and legal forms of enterprises: for partnerships it is share capital, for joint-stock companies - share capital, for production cooperatives - a mutual fund, for unitary enterprises - an authorized fund. In any case, the authorized capital is the start-up capital necessary to start the activities of the enterprise.

The methods of forming the authorized capital are also determined by the organizational and legal form of the enterprise: by making contributions by the founders or by subscription to shares, if it is a joint-stock company. Contributions to the authorized capital can be money, securities, other things or property rights that have a monetary value. At the moment of transfer of assets in the form of a contribution to the authorized capital, ownership of them passes to the economic entity, that is, investors lose property rights to these objects. 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.

Since the authorized capital minimally guarantees the rights of the enterprise’s creditors, its lower limit is limited by law. For example, for LLCs and CJSCs it cannot be less than 100 times the minimum monthly wage (MMW), for OJSCs and unitary enterprises - less than 1000 times the minimum monthly wage.

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 current legislation and constituent documents.

In the process of activity, an enterprise invests money in fixed assets, purchases materials, fuel, pays workers, as a result of which goods are produced, services are provided, and work is performed, which, in turn, are paid by customers. After this, the money spent is returned to the enterprise as part of the sales proceeds. After reimbursement of costs, the enterprise receives a profit, which goes to the formation of its various funds (reserve fund, accumulation funds, social development and consumption) or forms a single enterprise fund - retained earnings.

In a market economy, the amount of profit depends on many factors, the main one of which is the ratio of income and expenses. At the same time, the current regulatory documents provide for the possibility of certain regulation of profits by the management of the enterprise. These regulatory procedures include:

Accelerated depreciation of fixed assets;

Procedure for valuation and amortization of intangible assets;

The procedure for assessing participants' contributions to the authorized capital;

Choosing a method for estimating inventories;

The procedure for accounting for interest on bank loans used to finance capital investments;

The composition of overhead costs and the method of their distribution;

Profit is the main source of formation of the reserve fund (capital). This fund is intended to compensate for unexpected losses and possible losses from business activities, that is, it is insurance in nature. The procedure for the formation of reserve capital is determined by regulatory documents regulating the activities of an enterprise of this type, as well as its charter documents. For example, for a joint-stock company, the amount of reserve capital must be at least 15% of the authorized capital, and the procedure for the formation and use of the reserve fund is determined by the charter of the joint-stock company. The specific amounts of annual contributions to this fund are not determined by the charter, but they must be at least 5% of the net profit of the joint-stock company.

Accumulation funds and a social fund are created at enterprises at the expense of net profit and are spent on financing investments in fixed assets, replenishing working capital, bonuses for employees, paying wages to individual employees in excess of the wage fund, providing financial assistance, paying insurance premiums for additional medical programs insurance, paying for housing, purchasing apartments for employees, organizing meals, paying for transport travel and other purposes.

In addition to funds formed from profits, an integral part of the enterprise’s own capital is additional capital, which, according to its financial origin, has different sources of formation:

Share premium, i.e. funds received by the joint stock company - issuer when selling shares in excess of their nominal value;

Amounts of additional valuation of non-current assets arising as a result of an increase in the value of property during its revaluation at market value;

Exchange rate difference associated with the formation of the authorized capital, i.e. the difference between the ruble valuation of the debt of the founder (participant) for the contribution to the authorized capital, valued at constituent documents in foreign currency, calculated at the exchange rate of the Central Bank of the Russian Federation on the date of receipt of the amount of deposits, and the ruble valuation of this deposit in the constituent documents.

Additional capital funds can be used to increase the authorized capital; to repay losses identified based on the results of work for the year; for distribution among the founders. Regulatory documents prohibit the use of additional capital for consumption purposes.

In addition, enterprises can receive funds for the implementation of targeted activities from higher organizations and individuals, as well as from the budget. Budget assistance can be provided in the form of subventions and subsidies. Subvention– budget funds provided to a budget of another level or to an enterprise on a free and irrevocable basis for the implementation of certain targeted expenses. Subsidy– budget funds provided to another budget or enterprise on the basis of shared financing of targeted expenses.

Targeted funding and revenues are spent in accordance with approved estimates and cannot be used for other purposes. These funds are part of the organization’s equity capital, which expresses the residual rights of the owner to the property of the enterprise and its income.

2.2. External sources of financing for the enterprise

An enterprise cannot cover its needs only from its own sources. This is due to the characteristics of the movement cash flows, in which the timing of receipt of payments for goods, services and work by the enterprise does not coincide with the timing of repayment of the enterprise's obligations, unforeseen payment delays may occur. An additional need for sources of financing may also be due to inflation, when the funds received by the enterprise in the form of sales proceeds depreciate and cannot satisfy the enterprise's increased need for funds due to rising prices for raw materials. In addition, expansion of the enterprise's activities requires the involvement of additional resources. Thus, borrowed sources of financing appear.

Borrowed capital, depending on the terms of the loan, is divided into long-term (long-term liabilities) and short-term (short-term liabilities). Long-term liabilities, in turn, are divided into bank loans (repayable in more than 12 months) and other long-term liabilities.

Short-term liabilities consist of borrowed funds (bank loans and other loans to be repaid within 12 months) and accounts payable of the enterprise to suppliers and contractors, to the budget, for wages, etc.

An important source of financing the activities of an enterprise is a bank loan. Previously, many enterprises (especially industry and Agriculture) could not take advantage of loans from commercial banks, since the cost of loans (level interest rates) was great. But now they have the opportunity to pursue a more active policy of attracting borrowed funds, since in 2002-2003. the level of interest rates fell sharply. Foreign loans poured into Russia. By offering businesses lower rates and longer loan terms than Russian commercial banks, foreign banks have seriously asserted themselves in the Russian credit market.

From 2001 to 2004 refinancing rates have decreased by almost 2 times, but it’s not just the size of the rates; an important trend is the extension of the terms of lending to enterprises, which is predetermined by the long-term stabilization of the political and economic situation in the country and the improvement in the maturity of the banking system’s liabilities.

In accordance with the Civil Code of the Russian Federation, all loans are issued to borrowers subject to the conclusion of a written loan agreement. Lending is carried out in two ways. The essence of the first method is that the issue of granting a loan is decided each time on an individual basis. A loan is issued to meet a specific target need for funds. This method is used when providing loans for specific periods, i.e. term loans.

In the second method, loans are provided within the lending limit established by the bank for the borrower - by opening a line of credit. An open line of credit allows you to pay with the loan any settlement documents provided for loan agreement concluded between the client and the bank. The credit line is opened mainly for a period of one year, but can also be opened for a shorter period. During the term of the credit line, the client can receive a loan at any time without additional negotiations with the bank or any formalities. It is open to clients with a stable financial situation and good credit reputation. At the request of the client, the credit limit may be revised. The credit line can be revolving and non-revolving, as well as targeted and non-targeted.

Enterprises receive loans on the terms of payment, urgency, repayment, intended use, secured (guarantees, pledge of real estate and other assets of the enterprise). The bank checks the loan application for legal creditworthiness (legal status of the borrower, size of the authorized capital, legal address, etc.) and financial creditworthiness (assessment of the company’s ability to repay the loan in a timely manner), after which a decision is made to grant or refuse the loan .

The disadvantages of the credit form of financing are:

The need to pay interest on the loan;

Complexity of design;

The need for provision;

Deterioration of the balance sheet structure as a result of borrowing, which can lead to loss of financial stability, insolvency and, ultimately, bankruptcy of the enterprise.

Funds can be obtained not only by taking out loans, but also by issuing bonds and other securities. Bonds is a type of security issued as debt. Bonds can be short-term (for 1-3 years), medium-term (for 3-7 years), long-term (for 7-30 years). At the end of the circulation period, they are redeemed, that is, the owners are paid their nominal value. Bonds may be coupon bonds that pay periodic income. Coupon is a tear-off coupon on which the date of interest payment and its amount are indicated. There are also zero-coupon bonds that do not pay periodic income. They are placed at a price below par and are redeemed at par. The difference between the placement price and the par value forms a discount - the owner's income. The disadvantage of this method of financing is the presence of costs for issuing securities, the need to pay interest on them, and deterioration in the liquidity of the balance sheet.

In addition, the source of financing the activities of the enterprise is accounts payable, i.e. deferment of payment, as a result of which funds are temporarily used in the economic turnover of the debtor enterprise. Accounts payable- this is the debt to the personnel of the enterprise for the period from the calculation of wages to its payment, to suppliers and contractors, debt to the budget and extra-budgetary funds, to participants (founders) for income payments, etc.

The golden rule of accounts payable management is to maximize the debt repayment period without possible financial consequences. In this case, the company uses “other people’s” funds as if for free.

Using accounts payable as a source of financing significantly increases the risk of loss of liquidity, since these are the most urgent obligations of the enterprise.

CHAPTER 3. Managing sources of funding

The financial policy strategy of an enterprise is a key point in assessing the acceptable, desired or predicted rates of increasing its economic potential.

To finance its activities, an enterprise can use three main sources of funds:

Results of own financial and economic activities (reinvestment of profits);

Increase in authorized capital (additional issue of shares);

Attracting funds from third parties legal entities(issuing bonds, obtaining bank loans, etc.)

Of course, the first source is a priority - in this case, all earned profit, as well as potential profit, belongs to the real owners of the enterprise. In the case of attracting second and third sources, part of the profit has to be sacrificed. The practice of large Western companies shows that most of them are extremely reluctant to issue additional shares as a permanent part of their financial policy. They prefer to rely on own capabilities, that is, for the development of the enterprise mainly through reinvestment of profits. There are several reasons for this:

Additional issue of shares is a very expensive and time-consuming process.

The issue may be accompanied by a decline in the market price of the issuing company's shares.

As for the relationship between own and attracted sources of funds, it is determined by various factors: national traditions in financing enterprises, industry, size of the enterprise, etc.

Various combinations of using sources of funds are possible. If an enterprise focuses on its own resources, then the main share in additional sources financing will come from reinvested profits, and the ratio between sources will change towards a decrease in funds attracted from outside. But such a strategy is hardly justified, therefore, if an enterprise has a well-established structure of sources of funds and considers it optimal for itself, it is advisable to maintain it at the same level, that is, with the growth of its own sources, increase in a certain proportion the size of attracted ones.

The pace of increasing the economic potential of an enterprise depends on two factors: return on equity and the profit reinvestment ratio. These factors provide a generalized and comprehensive description of various aspects of the financial and economic activities of an enterprise:

Production (output of resources);

Financial (structure of sources of funds);

Relationships between owners and management personnel (dividend policy);

The company's position in the market (product profitability).

Any enterprise that operates sustainably over a certain period has well-established values ​​of the selected factors, as well as trends in their change.

3.1. The ratio of external and internal sources

financing in the capital structure

In the theory of financial management, two concepts are distinguished: “financial structure” and “capitalized structure” of the enterprise. The term “financial structure” means the method of financing the activities of the enterprise as a whole, that is, the structure of all sources of funds. The second term refers to a narrower part of financing sources - long-term liabilities (own sources of funds and long-term borrowed capital). Own and borrowed sources of funds differ in a number of parameters.

The capital structure influences the results of the financial and economic activities of the enterprise. The ratio between sources of own and borrowed funds serves as one of the key analytical indicators that characterize the degree of risk of investing financial resources in a given enterprise, and also determines the organization’s prospects in the future.

The issues of the possibility and feasibility of managing the capital structure have long been debated among scientists and practitioners. There are two main approaches to this problem:

1) traditional;

2) Modigliani-Miller theory.

Followers of the first approach believe that: a) the price of capital depends on its structure; b) there is an “optimal capital structure.” The weighted price of capital depends on the price of its components (equity and borrowed funds). Depending on the capital structure, the price of each source changes, and the rate of change is different. Numerous studies have shown that as leverage increases, total amount sources of long-term capital, the price of equity capital is constantly increasing at an increasing pace, and the price of borrowed capital, remaining practically unchanged at first, then also begins to increase. Since the price of borrowed capital is on average lower than the price of equity capital, there is a capital structure called optimal, in which the weighted price of capital indicator has a minimum value, and, therefore, the price of the enterprise will be maximum.

The founders of the second approach, Modigliani and Miller (1958), argue the opposite - the price of capital does not depend on its structure, that is, it cannot be optimized. When justifying this approach, they introduce a number of restrictions: the presence of an efficient market; no taxes; the same interest rates for individuals and legal entities; rational economic behavior, etc. Under these conditions, they argue, the price of capital always equalizes.

In practice, all forms of cost financing can be applied simultaneously. The main thing is to achieve the optimal ratio between them for a given period. There is an opinion that the optimal ratio between equity and borrowed funds is a ratio of 2:1. In other words, one’s own financial resources must be twice as large as borrowed ones. In this case, the financial position of the enterprise is considered stable.

3.2. Financial leverage effect

Nowadays, large enterprises usually have a debt-to-equity ratio of 70:30. The greater the share of own funds, the higher the financial independence ratio. When the share of borrowed capital increases, the probability of bankruptcy of the organization increases, which forces lenders to increase interest rates for loans due to increased credit risks.

But at the same time, enterprises with a high share of borrowed funds have certain advantages over enterprises with a high share of equity capital in assets, since, having the same amount of profit, they have more high profitability own capital.

This effect, which arises in connection with the appearance of borrowed funds in the amount of capital used and allows the enterprise to obtain additional profit on its own capital, is called the effect of financial leverage (financial leverage). This effect characterizes the effectiveness of the enterprise's use of borrowed funds.

In general, with the same economic profitability, the profitability of equity capital depends significantly on the structure of financial sources. If the organization has no debts to pay and no interest is paid on them, then an increase in economic profit leads to a proportional increase in net profit (provided that the amount of tax is directly proportional to the amount of profit).

If an enterprise with the same total amount of capital (assets) is financed from not only its own, but also borrowed funds, profit before tax is reduced due to the inclusion of interest in costs. Accordingly, the amount of income tax is reduced, and return on equity may increase. As a result, the use of borrowed funds, despite their cost, allows you to increase the profitability of your own funds. In this case, we talk about the effect of financial leverage.

Financial leverage effect- is the ability of borrowed capital to generate profit from investments of equity capital, or to increase the return on equity through the use of borrowed funds. It is calculated as follows:

E fr = (R e – i)*K s,

where R e is economic profitability, i is the interest for using the loan, K c is the ratio of the amount of borrowed funds to the amount of equity, (R e – i) is the differential, K c is the leverage.

The financial leverage differential is an important information impulse that allows you to determine the level of risk, for example, for granting loans. If economic profitability is higher than the level of interest on the loan, then the effect of financial leverage is positive. If these indicators are equal, the effect of financial leverage is zero. If the level of interest on a loan exceeds economic profitability, this effect becomes negative, that is, an increase in borrowed funds in the capital structure brings the enterprise closer to bankruptcy. Therefore, the larger the differential, the lower the risk and vice versa.

Leverage carries fundamental information. High leverage means significant risk.

The effect of financial leverage is higher, the lower the cost of borrowed funds (interest rate on loans), and the higher the income tax rate.

Thus, the effect of financial leverage allows us to determine the possibilities of attracting borrowed funds to increase the profitability of our own and the associated financial risk.

Conclusion

Any enterprise needs sources of financing for its activities. There are various sources of funds. Internal sources include: authorized capital, funds accumulated by the enterprise, targeted financing, etc. External sources are bank loans, issues of bonds and other securities, accounts payable. It should be noted that internal and external sources of financing are interrelated, but not interchangeable.

Today, an important task of an enterprise’s financial policy is to optimize the structure of liabilities, that is, to rationalize sources of financing. The greater the share of equity capital, the higher the coefficient of financial independence of the enterprise, but business entities with a high share of borrowed funds also have certain advantages. Borrowed funds for an enterprise, although they are a paid source of financing. Practice shows that their use is more effective than our own.

Each enterprise independently determines the structure and methods of financing its activities, this depends on the industry characteristics of the enterprise, its size, the duration of the production cycle of products, etc. The main thing is to correctly prioritize among sources of financing, calculate the capabilities of the enterprise and predict possible consequences.

List of used literature

1. Large economic dictionary / ed. Azriliyan A.N. – M.: Institute of New Economics, 1999.

2. Ermasova N.B. Financial Management: Exam Guide. – M.: Yurayt-Izdat, 2006.

3. Karelin V.S. Corporate finance: Textbook. – M.: Publishing and trading corporation “Dashkov and K”, 2006.

4. Kovalev V.V. Financial analysis: Capital management. Choice of investments. Reporting analysis. – M.: Finance and Statistics, 1998.

5. Romanenko I.V. Enterprise finance: lecture notes. – St. Petersburg: Publishing house Mikhailov V.A., 2000.

6. Selezneva N.N., Ionova A.F. The financial analysis. Financial management: Textbook for universities. – M.: UNITY-DANA, 2006.

7. Modern economics: Textbook / Ed. prof. Mamedova O.Yu. – Rostov-on-Don: Phoenix Publishing House, 1995.

8. Chuev I.N., Chechevitsyna L.N. Enterprise Economics: Textbook. – M.: Publishing and trading corporation “Dashkov and K”, 2006.

9. Economics and management in SCS. Scientific notes of the Faculty of Economics. Issue 7. – St. Petersburg: St. Petersburg State Unitary Enterprise Publishing House, 2002.

10. Economics of an enterprise (firm): Textbook / Ed. prof. Volkova O.I. and Assoc. Devyatkina O.V. – M.: INFRA-M, 2004.

11. http://www.profigroup.by

Application

Table "Key differences"

between types of sources of funds"

Scheme “Sources and movement

financial resources of the enterprise"

Financial resources– funds in cash and non-cash form.

Venture funding– investing capital in projects with high level risk and at the same time high profitability.

Cm.: Application, diagram “Sources and movement of financial resources of an enterprise.”

Share capital– the totality of contributions of participants in a general partnership or limited partnership made to the partnership for the implementation of its economic activities.

Unit trust– the totality of share contributions of members of a production cooperative for joint business activities, as well as those acquired and created in the process of activity.

Authorized fund– a set of fixed and working capital allocated by the state or municipal authorities by a state and municipal enterprise.

Refinancing rate– the amount of payment made by bank clients when repaying old loan debt by replacing them with new loans.

Cm. Application, table “Key differences between types of sources of funds.”

Economic profitability of the enterprise is determined by the ratio of economic profit (that is, profit before interest on the use of borrowed and raised funds and taxes) to the assets of the organization.

With all the variety of sources of financing investment activities, the main ones at present are the enterprise’s own funds, which are supplemented by borrowed funds.

The most important sources of an enterprise's own funds for financing investment activities are net profit and depreciation charges. Profit in market conditions is the main general indicator of the financial activity of an enterprise. The source of investment is not the entire profit of the enterprise, but only the net profit.

Net profit is the profit remaining at the disposal of the enterprise after paying taxes and other payments from profit to the budget. Part of the enterprise’s net profit in the form of an accumulation fund can be directed by the enterprise to capital investments in production and social nature, as well as for environmental activities.

The second major internal source of investment financing is depreciation charges. It is necessary to distinguish between own and internal sources of financial resources. Own sources include, as already noted, depreciation charges and part of the enterprise’s net profit. Internal sources of capital accumulation is a broader concept than the concept of own sources. Internal sources of accumulation of monetary capital may include both own and attracted sources.

TO internal sources of financial resources of the enterprise relate:

Depreciation deductions;

Profit;

Contributions to the repair fund;

Unused balances of special and special-purpose funds;

Accounts payable that are constantly at the disposal of a business entity;

Increase in value from revaluation of fixed assets.

At the same time, the repair fund, special and special-purpose fund, accounts payable are sources of financing for simple reproduction.

Thus, the enterprise’s own sources are used for expanded reproduction, and internal sources are used to finance both expanded and simple reproduction.

The main source of investment activity of the enterprise remains profit and depreciation charges. In accordance with the Tax Code of the Russian Federation (Part II), profit is recognized as income reduced by the amount of expenses incurred.

In this case, income includes:

Income from the sale of goods (works, services) and property rights;

Non-operating income.

Sales income includes:

Revenue from the sale of goods (works, services), both own production and previously purchased;

Proceeds from the sale of property (including securities);

Property rights.

Profit Loss) from the sale of products (works, services) is defined as the difference between the proceeds from sales in current prices (excluding VAT and excise taxes) and the costs of production and sales of products.

Profit from non-operating income - This is profit from non-operating operations, i.e. from operations not directly related to the main activity: rental of property, income from enterprise securities, excess of fines received over paid, profit from joint activities, etc.

The amount of profit of an enterprise is influenced by many factors, both external and internal (see Fig. 8).

Rice. 8. Classification of factors influencing the amount of profit

TO external factors relate:

Natural conditions;

State regulation of prices, tariffs, interest rates, tax rates and benefits, penalties, etc.

These factors do not depend on the activities of the enterprise, but can have a significant impact on the amount of profit. Thus, the constant increase in tariffs for the use of electricity, gas, water, telephone, etc. increases the enterprise's costs of production, and therefore reduces profits.

The profit tax rate also negatively affects the profit level. In accordance with the Tax Code of the Russian Federation (Part II), the tax rate on profit is set at 24%, while the amount of tax calculated at a tax rate of 7.5% is credited to the federal budget, the amount of tax calculated at a tax rate of 14.5% is credited to the budget of the constituent entities of the Russian Federation, and the remaining 2% is credited to local budgets.

Internal factors influencing the amount of profit are divided into production and non-production. Production factors are divided into:

Extensive;

Intense.

Extensive factors influence changes in the amount of profit by increasing the volume of enterprise funds invested in the production of products (works, services).

Intensive factors influence the increase in profits through qualitative changes in production: increased labor productivity, the use of new materials and technologies; progressive equipment; better organization of production and management, etc.

Non-production factors include, for example, environmental protection activities, improvement of living and working conditions for workers, etc.

All factors, both external and internal, are interconnected and interdependent and influence the costs of the enterprise and, ultimately, the amount of profit of the enterprise, and, consequently, the intensity of its investment activity.

The second important internal source of funds for investment is the enterprise's depreciation charges from the use of fixed assets and intangible assets. The amount of depreciation depends on the initial cost of fixed assets and intangible assets, their terms beneficial use and methods for calculating depreciation charges.

In order to bring the initial value of fixed assets into line with the real situation, taking into account inflation, they are revalued annually. Revaluation of fixed assets has a significant impact on the results of production and economic activities of the enterprise, which leads to a change in the amount of depreciation charges.

Big influence the amount of depreciation charges is affected by their accelerated depreciation. Accelerated depreciation in the Russian Federation is applied to fixed assets used to increase the production of computer equipment, new advanced types of materials and equipment, expand the export of products, as well as in cases where a mass replacement of worn-out and obsolete equipment is carried out with new ones. When introducing accelerated depreciation, enterprises increase the annual depreciation rate, but not more than twice.

Accelerated depreciation allows you to quickly transfer the cost of fixed assets to production costs and contributes to the faster replacement of outdated equipment with new, progressive ones, which ultimately leads to increased competitiveness of products.

The Tax Code of the Russian Federation (Part II) provides for accelerated depreciation in relation to depreciable fixed assets used to work in an aggressive environment and (or) extended shifts. For these fixed assets, a special coefficient is also applied to the basic depreciation rate, but not higher than 2.

In this case, an aggressive environment is understood as a set of natural and (or) artificial factors, the influence of which causes increased wear (aging) of fixed assets during their operation. Working in an aggressive environment also equates to the presence of fixed assets in contact with an explosive, fire-hazardous, toxic or other aggressive technological environment, which can serve as the cause (source) of initiating an emergency.

For depreciable fixed assets that are the subject of a financial lease agreement (leasing agreement), a coefficient of 3 can be applied to the basic depreciation rate. However, this provision does not apply to fixed assets belonging to the first, second and third depreciation groups if depreciation on them is calculated by non-linear method.

For passenger cars and passenger minibuses with an initial cost of more than 300 thousand rubles and 400 thousand rubles, respectively, the basic depreciation rate is applied with a special coefficient of 0.5.

In order to develop small businesses in the Russian Federation, in the first year of operation of small enterprises, along with the use of accelerated depreciation, it is allowed to additionally write off as depreciation charges up to 50% of the original cost of fixed assets with a service life of up to three years.

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 we're talking about about individual enterprises and investment projects, then 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 consists of 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 portion 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 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 are also actively involved in government programs. Government grants and subsidies are often provided free of charge with the expectation of improving the situation in the entire industry, and therefore enterprises are interested in 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 receive the money necessary 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 find money that suits large companies looking for immediate funding. The concept of leasing has recently become more and more popular in Russia. Investment leasing and leasing of material assets are sources of formation of material investments. Industrial equipment and real estate are provided on 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 – more complex circuit sales of the company'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 investment represents highest value for the enterprise 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. The investor can be presented with the most different ways placement of 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. In particular, all sources of investment financing are divided into: Internal; And external ones. To internal sources investment financing include: 1) own sources, which include: Depreciation (sinking fund); Net profit of the enterprise; Reserve capital; Special purpose funds; Authorized capital funds (which is formed when creating an enterprise); Founders' funds, etc. External sources include: 1) attracted sources are funds that are raised from the market by issuing shares, in the form of charitable contributions, scientific grants, as well as funds allocated by budgets of various levels. This source of financing is fully available only to joint stock companies in the form of issuing shares; 2) borrowed sources are funds that are raised on repayment terms (that is, these funds must be returned to the lender within mandatory), urgency (these funds are raised for certain period) and payment (funds are raised at a certain percentage). Borrowed sources of investment financing include: loans and borrowings from banks; issue of bonds; bills, etc. In table 10 shows a comparative description of own, attracted and borrowed sources of financing. Table 10 - Comparative characteristics of various sources of financing Parameters for comparison Own sources Involved sources Borrowed sources 1. Availability The organization’s own sources are always at the disposal of the organization, but their use may require diversion from circulation 1. Availability is limited, in particular, only those joint-stock companies whose authorized capital is fully paid can issue shares; 2. In addition, JSCs may face the problem of selling securities on the market 1. Only organizations with a stable financial position can count on attracting borrowed funds; 2.Often additional loan collateral is required 2. Sufficiency As a rule, the organization’s own funds are not enough for normal production and economic activities of the organization The amount of funds raised is limited by the “attractiveness” of the shares for the population The loan amount is limited by its collateral 3. Price of sources Using your own sources does not lead to additional costs JSC shares pay dividends Loan interest, interest or discount on bonds As already noted, indirect sources of investment financing are those sources that do not directly affect the value of the organization’s property. TO indirect sources relate: 1)leasing According to the Federal Law “On Financial Lease (Leasing)”, “leasing is a set of economic and legal relations arising in connection with the implementation of a leasing agreement, including the acquisition of the leased asset.” A leasing agreement assumes that the lessor (lessor - the person who leases the property) undertakes to acquire ownership of the property specified by the lessee (lessee - the person who leases the property) from the seller specified by him and to provide the lessee with this property for a fee for temporary possession and use. That is, the traditional leasing scheme involves the participation of three parties: – lessee – an enterprise that is interested in purchasing certain property for its production activities; – lessor – an organization that, at the direction of the lessee, purchases the equipment necessary for it from a certain supplier, and then leases this equipment to this lessee; – supplier (seller) of property. It should be noted that the subject of leasing can be any non-consumable things, including enterprises themselves and other property complexes, buildings, structures, equipment, vehicles and other movable and immovable property that can be used for entrepreneurial activity. The subject of leasing cannot be land plots and other natural objects, as well as property that is prohibited for free circulation by federal laws or for which a special circulation procedure has been established, with the exception of military products. Leasing is most often resorted to by companies that, on the one hand, do not have enough own funds to purchase the required property, and on the other hand, financial condition such that banking and other credit organizations will refuse to issue a loan to them. That is, leasing is more attractive for enterprises with a relatively unstable financial situation that cannot guarantee the return of loan funds. In addition, the subject of leasing (property that is purchased under lease) in itself is security for this transaction. But, on the other hand, lease payments are usually higher than loan payments. The traditional leasing scheme is shown in Fig. 2. The property under the leasing agreement is the property of the lessor, and is reflected in the lessee's off-balance sheet accounts, therefore the value of the lessee's property is not directly reflected; 2)franchising(or, according to the Civil Code of the Russian Federation, a commercial concession agreement). In this case, “... one party (the copyright holder) undertakes to provide the other party (the user), for a fee for a period or without specifying a period, the right to use in the user’s business activities a set of exclusive rights belonging to the copyright holder, including the right to a company name and (or) commercial designation of the copyright holder, on protected commercial information, as well as on other objects of exclusive rights provided for in the contract, trademark, service mark, etc.” A commercial concession agreement provides for the use of a set of exclusive rights, business reputation and commercial experience of the copyright holder to a certain extent (in particular, establishing a minimum and (or) maximum volume of use), with or without indicating the territory of use in relation to a certain area of ​​business activity (sale of goods received from the copyright holder or produced by the user, carrying out other trading activities, performing work, providing services). Essentially, franchising implies that a large, well-known enterprise grants another enterprise the right to use its trademark, its technology, a proven business system, etc. The most famous examples of the use of franchising in Russia are the sale of the 1C accounting program, the McDonald's fast food system, the organization of the production of passenger cars from well-known manufacturers, etc.; 3)factoring. According to the Civil Code, factoring involves “financing against the assignment of a monetary claim.” Under a financing agreement for the assignment of a monetary claim, one party (financial agent) transfers or undertakes to transfer to the other party (client) funds to offset the monetary claim of the client (creditor) to a third party (debtor). This type source of investment financing actually involves the enterprise selling its receivables to a specialized factor firm. The factoring scheme is shown in Fig. 3. Factoring is reflected in the structure of the organization’s property, in particular, in fact, accounts receivable are “transformed” into cash, but have virtually no effect on the organization’s balance sheet. In practice, factoring is most often carried out by banking organizations, as well as collection agencies. Other sources of investment financing may also be used. 3.4. The concepts of “capital”, “funds”, “funds”, “investments” Quite often, concepts such as “capital”, “funds”, “funds”, “investments” are used in relation to property. Let us dwell on these concepts in more detail. In theory, under capital refers to material and financial resources, intellectual developments, entrepreneurial skills, etc., which are involved in the production process and serve to make a profit, i.e. capital- this is everything that an organization uses in its activities to make a profit. Capital in an organization can exist in several forms: – in cash (for example, funds in a current account, at the cash desk); – in production form (these are means used in production, for example, buildings, equipment, etc.); – in commodity form (these are stocks of finished products in a warehouse). Capital has a cost and natural (real) expression. At the same time, under funds refers to the material state of capital, and means, as a rule, refers to the value expression of capital. However, in everyday life, as a rule, no distinction is made between these concepts. The concept of investment is regulated by the Federal Law “On investment activity in the Russian Federation, carried out in the form of capital investments.” Investments are understood as “...cash, securities, other property, including property rights, other rights that have a monetary value, invested in objects of entrepreneurial and (or) other activity in order to make a profit and (or) achieve another useful effect” , i.e. investments are everything that is invested in business activities with the aim of making a profit, and capital is what the organization already has at a particular point in time.