Today there are two main types of long-term financing for companies.
Long-term sources of financing are divided into internal and external resources.

Domestic long-term sources of financing
Such sources of financing the activities of companies are the reserves they have accumulated - retained earnings and accumulated depreciation expense. However, the use of internal funds for long-term financing is possible only in very large companies, financial and industrial groups that have the required amount of temporarily free funds.
Also, internal sources of long-term financing include funds received from the budget on a non-repayable basis under various programs, as well as insurance compensation.

External long-term sources of financing
Such sources are:
bank loans;
non-banking instruments, when the company receives the necessary funds by placing bonds and shares;
funds provided from the budget on a repayable basis;
funds received from other legal entities.

Long-term financing involves the company giving up part of its profits today, investing it in its own development, in the hope that these investments will provide a much greater return on investment. This feature of long-term financing is associated with some of its risks.
In order to assess the riskiness of investments on long term, the concept of operational and financial leverage is used, as well as various stock market ratios.
How effective are long-term sources of financing, how great is the risk of insufficient return on long-term investments in the activities of companies - answers to these questions can be given by the financial analysis the work of your company and forecasting its development over the next few years.
Such an analysis, which our company provides, cannot be 100% accurate, since it requires taking into account many factors, including unpredictable ones, but it allows, with a certain degree of approximation, to increase the efficiency of long-term investments in the development of the company.

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RUSSIAN STATE TRADE AND ECONOMICS UNIVERSITY

ROSTOV INSTITUTE (BRANCH)

TEST

in the discipline: “Long-term financial policy»

Completed by: Yatsenko Vladimir Vladimirovich

Course: 5 FIC

Rostov-on-Don2012

2. Classification of funding sources

1. Concept long-term sources financing

Long-term financing involves the company giving up part of its profits today, investing it in its own development, in the hope that these investments will provide a much greater return on investment. This feature of long-term financing is associated with some of its risks.

In order to assess the riskiness of investments over the long term, the concept of operational and financial leverage, as well as various stock market ratios, are used.

How effective are long-term sources of financing, how great is the risk of insufficient return on long-term investments in the activities of companies - the answers to these questions can be given by a financial analysis of the company’s work and forecasting its development over the next few years.

Such an analysis, which the company provides, cannot be 100% accurate, since it requires taking into account many factors, including unpredictable ones, but it allows, with a certain degree of approximation, to increase the efficiency of long-term investments in the development of the company.

Long-term sources of financing are divided into internal and external resources.

Internal long-term sources of financing

Such sources of financing the activities of companies are the reserves they have accumulated - retained earnings and accumulated depreciation charges. However, the use of internal funds for long-term financing is possible only in very large companies, financial and industrial groups that have the necessary amount of temporarily available own funds.

Also, internal sources of long-term financing include funds received from the budget on a non-repayable basis under various programs, as well as insurance compensation.

External long-term sources of financing

Such sources are:

bank loans;

non-banking instruments, when the company receives the necessary funds by placing bonds and shares;

funds provided from the budget on a repayable basis;

funds received from other legal entities.

By financing an enterprise we mean attracting the capital necessary for the acquisition of fixed and working capital of an enterprise, in other words, covering the need for capital.

In enterprise finance, internal and external sources of financing are understood as own and borrowed (borrowed) funds, respectively.

The fundamental difference between sources of own and borrowed funds lies in 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.

The main sources of funding are own funds or self-financing, which is a prerequisite for successful economic activity enterprises in conditions market economy. This principle is based on full recovery of costs for production and expansion of production - technical base enterprise, it means that each enterprise covers its current and capital costs through own sources. If there is a temporary lack of funds, the need for them can be met through short-term bank loans and commercial credit, if we are talking about current costs, and long-term bank loans used for capital investments.

The relevance of considering this issue lies in the fact that it is necessary not only to analyze one’s own financial independence or in general financial situation, as well as making the right choice sources of financing activities.

2. Sources of long-term financing

Funding sources are cash income and revenues at the disposal of the enterprise and intended for the implementation of expenses for expanded reproduction, economic stimulation, fulfillment of obligations to the state, and financing of other expenses.

The financing system includes sources of financing and organizational forms of financing.

The classification of funding sources is varied:

1. Regarding property relations:

Own sources of financing;

Borrowed sources of financing;

2. By type of owner:

Government resources;

Funds of legal entities;

Funds of individuals;

Foreign sources;

3. According to time characteristics:

Short term;

Indefinite;

Long-term.

The most important tasks of long-term financial policy are to find sufficient sources of funds necessary to meet the need for assets, minimize their prices and optimize the capital structure to ensure the financial stability of the enterprise.

Attracting financial resources from long-term financing sources guarantees a stable flow of funds for the enterprise, and in this sense it is more reliable than short-term financing, in which the enterprise has no confidence in receiving resources in the near future.

An enterprise can attract both internal and external sources of financing for long-term financing of its activities.

Before considering external sources of long-term financing, an enterprise should analyze the possibilities of financing through “internal” ones, which are much cheaper.

An enterprise can provide itself with internal long-term financing through:

Reinvestment of profits;

Depreciation policy;

Optimizing the management of fixed assets (restructuring, sale of auxiliary production, unprofitable areas of activity and inefficiently used fixed assets).

Profit reinvestment is a more acceptable and relatively cheap form of financing for an enterprise expanding its activities. In particular, this is one of the reasons for its widespread use.

Reinvesting profits avoids additional expenses which take place when new shares are issued. Another significant advantage is the preservation of the existing system of control over the activities of the enterprise, since in this case the number of shareholders practically does not change.

Depreciation policy is an integral part of the general policy of forming one’s own financial resources, which consists in managing depreciation charges from used fixed assets and intangible assets for the purpose of their reinvestment in production activities. In the process of forming the depreciation policy of an enterprise, the following factors are taken into account:

a) the volume of fixed assets used and intangible assets subject to depreciation;

b) methods for assessing the value of used fixed assets and intangible assets subject to depreciation;

c) the actual period of expected use of depreciable assets at the enterprise;

d) methods of depreciation of fixed assets and intangible assets permitted by law;

e) composition and structure of fixed assets used;

f) inflation rates in the country;

g) investment activity of the enterprise in the coming period.

Company restructuring is a change in the structure of the company (in other words, the order, arrangement of its elements), as well as the elements that form its business, under the influence of factors of either the external or internal environment. Restructuring includes: improvement of the management system, financial and economic policy of the company, its operating activities, marketing and sales system, and personnel management.

In addition, there are two types of external long-term financing: debt and equity financing.

Lending:

ѕ a source of financing with a fixed cost that does not depend on the return on assets;

* repayment of principal and interest, as opposed to dividends, are required by law;

* repayment dates can be combined in time with the receipt of funds, but they must be determined in advance;

* the cost of raising funds is relatively low;

* as a rule, requires collateral in the form of fixed assets or guarantees.

Equity financing:

* there is no obligation to allocate funds for the repurchase of shares according to the law

* obligation to pay dividends

* increases financial base and credit capacity of the enterprise

ѕ is the most expensive source of financing, since dividends do not reduce the tax base, and the cost of raising funds is high

ѕ investors expect a high return on their investment, since the risk and uncertainty associated with equity capital are high

* expansion of share capital dilutes ownership and control of existing shareholders

That. lending for an enterprise is a less reliable source of obtaining financial resources, and equity financing requires high costs.

3. Long-term financing instruments

long-term financing leasing lending

To meet the financial needs of the company, a variety of financing instruments are used. The most common ones are:

* bank lending;

* financial leasing;

* factoring.

The term "credit" is used to mean commodity credit(providing a loan of things), a commercial loan (providing a loan of money or things in the form of an advance, prepayment, deferment or installment payment for goods, work, services), a budget loan (providing budget funds legal entities on a returnable and reimbursable basis) and tax credit(deferment of payment of part of the income tax or other tax).

Bank loan is classified:

1. Depending on the security

* without collateral (blank);

* secured (against a bill of exchange, against goods and funds, against real estate - a mortgage.

2.By repayment terms:

* on demand (on-call);

* short-term;

* long-term;

3. By repayment method

* one-time payment;

* in installments.

4. According to the percentage deduction method:

* at the time of provision;

* at the time of repayment.

The following forms of bank lending exist:

ѕ urgent loan;

* current credit;

* call loan;

* accounting credit;

* acceptance credit;

* pawn loan;

A term loan is a direct, unsecured loan for a period of no more than 90 days, usually issued in the form of promissory note signed by the borrower.

In countries with insufficiently developed market relations and legislation, instead of a promissory note, an ordinary special one is drawn up loan agreement between the bank and the company. Funds for a term loan are provided in a lump sum in the full amount and are repaid with interest in the full amount of the loan at the same time. The company borrows funds in this way in exceptional situations when unexpected needs for funds arise. Therefore, term loans have a high cost associated with high administrative costs for the preparation and execution of contracts of this type.

A contract loan provides for the bank to maintain the client's current account with payment of received settlement documents and crediting of proceeds. If the client’s funds are not enough to repay the obligations, the bank credits him within the amount established in the loan agreement, i.e. the current account may have both a debit and a credit balance.

An on-call loan is a type of current account and is issued, as a rule, against the security of inventory items or securities. Within the limits of the secured loan, the bank pays all the client’s bills, receiving the right to repay the loan at its first request using the funds received into the client’s account, and if they are insufficient, by selling the collateral. The interest rate on this loan is lower than on term loans.

An accounting (bill) loan is provided by the bank to the bill holder by purchasing (discounting) a bill before the payment date. The holder of the bill receives from the bank the amount specified in the bill minus discount interest, commission payments and other overhead expenses. Closing of the loan is carried out on the basis of the bank’s notification of payment of the bill.

Acceptance credit is mainly used in foreign trade and is provided by the supplier to the importer through the bank's acceptance of drafts issued to him by the exporter.

Aval is a guarantee for the person obligated under a bill, usually on the face of the bill or allonge. The bank that issued such a guarantee (avalist) is responsible for payment of the bill in the same amount as the person to whom it was given, i.e., bears joint liability. The avalist who paid the bill has the right to demand reimbursement of the payment for which he gave the aval, as well as from the persons responsible to the latter.

A pawnshop loan is carried out in the form of a bank loan secured by securities deposited in the bank. Securities that are listed on an exchange or have an organized free market are usually accepted as collateral. The contract for obtaining a pawnshop loan may provide for various conditions debt repayment: the borrower can repay the entire debt in a lump sum payment within the period stipulated by the contract; can pay only part of the debt during this period, and repay the remaining part in the next period; There may be an option to extend the repayment period for another three months. When calculating, the exact number of days in a month is taken into account; the length of the year is assumed to be 360 ​​days.

If the borrower does not repay the loan on time, he is obliged to pay the lender at an increased (penalty) interest rate for the entire period of late payment. If the loan is still not repaid, ownership passes to the creditor, who sells the property and withholds from the proceeds the amount of the debt along with accrued interest.

Financial leasing - purchase of specialized equipment financial company(including on credit) with its subsequent rental.

The lessor undertakes to acquire ownership of the property specified by the lessee from the seller specified by him and to provide this property to the lessee for a fee for temporary possession and use. Most often this is done for business purposes, but from January 1, 2011 in Russia this is not mandatory. Consumer leasing is widespread in world practice. The agreement may provide that the choice of the seller and the purchased property is made by the lessor. The lessee may initially be the owner of the property.

The subject of leasing is any non-consumable things, including enterprises, buildings, structures, equipment, vehicles and other movable and immovable property.

The subject of leasing cannot be land 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.

Land plots cannot be an independent subject of a leasing agreement. Contained in Art. 666 Civil Code Russian Federation and Art. 3 Federal Law“On financial lease (leasing)” the ban does not apply to cases where the subject of leasing is a building (structure), enterprise, other property complex (resolutions of the Presidium of the Supreme Arbitration Court Russian Federation dated September 16, 2008 No. 4904/08 and 8215/08).

The leased asset transferred for temporary possession and use to the lessee is the property of the lessor. The leased asset transferred to the lessee under a financial leasing agreement is recorded on the balance sheet of the lessor or lessee by agreement of the parties.

Depending on the period beneficial use leasing object and economic essence Leasing agreements are distinguished:

* financial leasing (financial lease). The term of the leasing agreement is comparable to the useful life of the leased object. As a rule, at the end of the leasing agreement, the residual value of the leased object is close to zero and the leased object can become the property of the lessee without additional payment. In fact, it is one of the ways for the lessee to attract targeted financing (for the purpose of acquiring the leased object);

* operational (operational) leasing. The term of the leasing agreement is significantly less than the useful life of the leased object. Typically, the subject of leasing is the assets already at the disposal of the lessor (there may not be a third party - the seller). At the end of the contract, the leased object is either returned to the lessor and can be leased again, or purchased by the lessee at its residual value. The leasing rate is usually higher than financial leasing. In economic essence, it is a type of lease.

Leasing agreements may provide for maintenance of supplied equipment, personnel training, etc. The agreement may contain provisions on the right (or obligation) of the lessee to purchase goods upon expiration of the lease period.

A special case is leaseback, in which the seller of the leased property is also the lessee. In fact, this is a form of obtaining a loan secured by production assets and obtaining additional economic benefits from differences in taxation.

Factoring is a set of services for servicing the client’s supplies by a factoring company (factor) with a deferred payment for assignment accounts receivable.Three parties are usually involved in a factoring operation: the factor (factoring company or bank) - the buyer of the claim, the supplier of the goods (creditor) and the buyer of the goods (debtor). The main activity of a factoring company is lending to suppliers by purchasing short-term receivables, usually not exceeding 180 days. An agreement is concluded between the factoring company and the supplier of goods that, as demands arise for payment for deliveries of products, invoices or other payment documents are presented to it. The factoring company discounts these documents by paying the client 60–90% of the cost of the requirements. After the buyer pays for the products, the factoring company pays the remaining amount to the supplier, deducting a percentage from him for the loan provided and commission payments for the services provided.

Exists a large number of types of factoring services, differing from each other primarily in the degree of risk that the factoring company assumes.

Factoring with recourse is a type of factoring in which the factor acquires from the client the right to all amounts due from the debtor. However, if it is impossible to collect the amounts from the debtor in full, the client who assigned the debt is obliged to compensate the factor for the missing cash.

Factoring without recourse is a type of factoring in which the factor acquires from the client the right to all amounts due from the debtor. If it is impossible to recover the amounts in full from the debtor, the factoring company will suffer losses (although within the framework of the financing paid to the client).

Factoring can be open (with notification of the debtor about the assignment) and closed (without notification). It can also be real (a monetary claim exists at the time of signing the contract) and consensual (a monetary claim will arise in the future).

When one Factor participates in a transaction, factoring is called direct, and when there are two Factors, it is called reciprocal.

When classifying types of factoring, it is worth paying attention to invoice discounting, although it has a number of significant differences, despite the fact that it contains features of recourse closed factoring.

Compared to lending, factoring has a number of significant advantages:

1. Collateral. Unlike lending, where in most cases mandatory material collateral is required (fixed assets, goods in circulation, raw materials, etc.), in factoring operations the collateral is the company's receivables.

2. Evaluation financial condition. Strict requirements for the company’s financial condition and the quality of financial reporting have less of an impact on positive decision issue with factoring than with lending. Factoring companies are more interested in the quality and diversification of the supplier’s receivables.

3. Flexible work scheme . Unlike lending, factoring does not tie the hands of financial directors with strict time frames (when lending, one-time sampling or according to an approved schedule is mainly used credit funds and similar repayment). Factoring financing is carried out upon shipment of goods to approved debtors and is actually proportional to sales volume. Repayment of factoring financing is carried out at the time of payment for the shipped goods by debtors.

4. High sales growth rates. More “flexible” and permanent financing when factoring in combination with effective management accounts receivable allows you to increase the company's turnover at a faster pace. Upon shipment of goods to approved debtors, 90% of the amount of each delivery is financed. Thus, the amount of financing grows in proportion to the volume of sales.

Even the simplest calculations show that when equal conditions factoring allows you to increase trade turnover 2 times faster within one year than with credit for replenishment working capital. Using factoring with receiving financing from the Factor immediately after shipment of the goods, you will always have funds for the production/purchase and sale of goods, without waiting for payment from buyers for previously shipped goods.

In addition, factoring is not only financing. A full range of factoring services involves managing accounts receivable, covering a number of risks (loss of liquidity, credit, inflation, currency), information and analytical services (special IT that allows you to control cash flow, Current state accounts receivable, customer payment discipline, plan daily financial flows companies and generate analytical reports for making management decisions). The listed services form the added value of factoring, which distinguishes factoring from conventional lending.

List of used literature

4. Blank, I.A. Fundamentals of financial management. T.1./ I.A. Form. - K.: Nika-Center, 2009. - 624 p.

5. Blank, I.A. Business financing / I.A. Form. - M.: Alpina Publisher, 2011. - 197 p.

6. Kovalev, V.V. Introduction to financial management / V.V. Kovalev. - M.: Finance and Statistics, 2010. - 768 p.

7. Kolpakova, G.M. Finance. Money turnover. Credit: Textbook Benefit / G.M. Kolpakova. - M.: Finance and Statistics, 2011. - 496 p. 3rd ed.

8. Lushin, S.I. Finance: Textbook / S.I. Lushin, V.A. Slepov.- M.: Publishing house Ros. econ. acad., 2010. - 384 p. 2nd ed.

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Every dynamically developing enterprise is forced to make a decision to purchase new fixed assets, which are financed by long-term funds. Enterprises have two sources of long-term financing: their own funds and external long-term funds. The choice between internal and external sources of financing depends on the business cycle of the enterprise: the higher the profitability, the less the enterprise relies on external sources. External financing is provided by investors and lenders. Investors finance a company by purchasing its securities on financial markets. These securities are divided into debt and equity.

Currently, debt financing is preferable - regardless of the country, debts make up the bulk of external financing. In turn, new equity issues constitute a small and decreasing share of international long-term financing. Typically, a business uses different instruments for debt financing, depending on whether it uses specialized financial intermediaries or goes to the market without intermediaries. An alternative to a direct public offering of its securities is for the borrower to obtain a loan from a specialized financial intermediary, which in turn attracts deposits or issues its securities against this loan. These alternative instruments are typically commercial bank loans for short- and medium-term borrowing, or for long-term borrowing, privately placed bonds that are sold to a limited number of investors - insurance companies and pension funds. The bonds in question are much more similar to loans than publicly traded securities, as the circulation regime of these bonds (for example, the possibility of changing the terms of issue by agreement before the maturity date of the bond, the right of the bondholder to prohibit the issuer from resorting to new loans, selling assets and other complex conditions ) actually coincides with the terms of the loans.

1. Modern tendencies international capital markets

Historically, enterprises in the Anglo-Saxon market-oriented countries financial system with developed institutional investors ( pension funds, shares investment funds, universities, other non-profit organizations, insurance funds and others), such as the USA, Great Britain and others, are financed directly by issuing their securities on financial markets. In countries with an alternative bank-oriented financial system - Japan, Germany, France and others - enterprises resort mainly to bank borrowing. In the financial markets of the countries of this system, especially in the Japanese markets, there has been a clear tendency to borrow funds themselves through the sale of issued securities on the capital market instead of obtaining loans from financial intermediaries. This process is called securitization (from the English security - security). Departure from traditional system, for example, Japanese companies, is a consequence of the Asian crisis in the second half of the 90s, which revealed the shortcomings of the bank-oriented financial system. The main cause of the crisis in this perspective is the so-called “keiretsu” - huge financial and industrial groups with the main bank in the center, which distributes cheap resources not on the basis market competition, but according to the criterion of personal acquaintances and connections, thus wasting hundreds of billions of dollars of investments accumulated through hard work on unprofitable grandiose projects. Gaining market share through massive industrial investments was prioritized over profit margins. For example, return on equity in the United States before the Asian crisis in 1995 exceeded that in Japan and Germany by 50%. And this despite the lower propensity of Americans to save. This paradox is due to the strict accountability of American management to shareholders, whose performance criterion is profit per share (rather than market share); financial transparency that allows investors to make informed decisions; and a perfectly competitive environment that punishes unscrupulous lenders and puts ineffective borrowing companies out of business. Thus, after the crisis, the cost of bank borrowing increased due to increased competition between companies in the long-term financing market, whose projects began to be financed by banks increasingly in accordance with market criteria for the effectiveness of investments. The rise in the cost of bank loans is also facilitated by the ongoing process of financial deregulation, which has been ongoing for about two decades, initiated by governments with the aim of developing local financial markets. Since, as a result of the lifting of restrictions on the capital markets, the cost of attracting deposits by banks increases in conditions where, with the abolition of various legal restrictions In financial markets, banks, to a certain extent, are no longer monopolies and cannot set relatively low interest rates on attracted deposits, which are considered as sources of loans. On the other hand, as a consequence of the deregulation process, the cost of funds obtained on the financial market without intermediaries decreases, turning to which is no longer the only acceptable alternative. These two trends of a decrease in the cost of capital attracted without intermediaries and an increase in the cost of bank borrowing determine the development of securitization. Another positive trend in the international long-term financing markets is the reduction in borrowing costs through public offerings of their securities for little-known companies. Historically, they borrowed from banks or, as in the US, placed bonds privately with insurance companies. But due to the development of telecommunications and other technologies, information about borrowers has become available not only to specialized lenders. Having cheap and reliable information about the borrower, it has become preferable for investors to bypass intermediaries such as banks and finance not only well-known and impeccable borrowers.

These processes of rapid development of telecommunications and technology and financial deregulation, which has resulted in the elimination of structures that hinder competition and protect local markets, are blurring the differences between local and foreign financial markets. The globalization of financial markets is leading to unprecedented competition between key financial centers and institutions, further reducing the costs of international financing. To return capital, financial centers that have lost their leadership are forced to abandon outdated and expensive restrictions. The process of deregulation received additional impetus in countries with bank-oriented financial systems due to the growing conviction of the popular masses that this system does not promote adequate lending to small and medium-sized businesses, which is the basis of growth and innovation. As a result of these processes, the volume of funds raised on international capital markets has grown sharply over the past decade. In 1990 this indicator amounted to 450 billion dollars, and in 1997 – already 1.8 trillion. Doll.

If competition is the engine of the international financial system, then innovation is its fuel. Financial innovations make it possible to shift and diversify risks. They also enable companies to penetrate previously inaccessible markets and allow investors and issuers to bypass tax law. Companies can issue securities in such a way as to occupy a specific niche in the capital market and thus raise funds at a lower price with relatively the same risk. In the 1990s, the Swedish export credit corporation SEK borrowed approximately $2 billion for one year. To reduce financing costs, SEK applied financial innovation. The company organized a bond issue, divided into two parts - coupon and discount, and sold them in parts to investors. The coupon bonds were in line with the interests of the Japanese insurance company, which was looking only for interest-bearing securities. While the discount portion was sold to European investors, who preferred income in the form of return on capital as taxed at a lower tax rate than interest income. As a result of this division, the corporation was able to carry out a financial transaction that was worth more in parts than in the whole. The solution to the problem of tax avoidance was expressed in a scheme resorted to by the Sibneft company in 1997, when it placed three-year Eurobonds for $150 million. The company received a loan from Salomon Brothers International Limited, which subsequently issued bonds in the West against this loan. The holders of these bonds, of course, did not have to pay taxes in Russia. The company intends to apply a similar scheme for the planned issue of three-year Eurobonds in the amount of $250 million in October 2002.

Financial innovation has dramatically increased the mobility of international capital. International capital flows through major international financial centers such as London, Tokyo and New York. Political stability and minimal government intervention are prerequisites for the establishment and development of these centers. It is not surprising that London occupies a dominant position here, due to its historical deregulation financial market. It was here that the Euromarket emerged approximately 33 years ago. In general, international financial markets develop wherever local legislation does not prohibit them and where they manage to attract participants. Development is carried out in two categories: foreign financing and eurocurrency financing. In the first case, the subject is financed for foreign market in local currency, in the second - also on the foreign market, but in the currency of a third country.

2. Foreign long-term financing

Foreign long-term financing is divided into raising funds on the foreign stock market using foreign bonds and shares and to obtain foreign loans.

2.1 Foreign bonds

The foreign bond market is simply a subset of the domestic bond market issued by foreigners. Foreign bonds are also subject to local laws and must be denominated in local currency. They are issued with fixed and floating rates and in the form of bonds, derivatives of shares. Floating rate bonds have coupons, the interest on which is revised every 3-6 months. The new rate is set as a fixed premium on the changing rate on government bonds or bills of reliable issuers. Equity-derived bonds can be convertible and in the form of warrants. In the first case, they are converted into a certain number of shares before the redemption date. In the second, the owner of the warrants receives the right to buy a certain number of shares within deadline. For more than 20 years, convertible bonds have been widely used throughout the world. stock markets to raise capital, finance development programs and other corporate purposes. The volume of placement of convertible bonds on the world's major markets amounts to tens of billions of dollars per year. Traditional buyers of convertible bonds are institutional investors in Western Europe, mainly large funds. Large volumes are also placed on exchanges in Southeast Asia. US investors have played an active role since the early 1990s with the introduction of Rule 144A, which allows issuers, including foreign ones, to trade US public issues on unregistered private platforms. As a result, these foreign issuers may not comply with the stringent disclosure and reporting requirements of the U.S. Securities and Exchange Commission (SEC). Also, the popularity of convertible foreign bonds is explained by the fact that the issue of convertible bonds has a lower cost of servicing compared to the issue of ordinary foreign bonds due to the fact that the investor has the opportunity to receive income from converting bonds into shares if the market price of the latter increases significantly. In addition, the requirements for the issuer are less stringent than in the case of direct borrowing.

2.2. Foreign shares

The second component of the foreign stock market is financing through the sale of shares in foreign markets in the currency of these markets. The advantage of this source of financial resources is the ability to diversify the company's risk from selling its shares on one national market. As a result, the company is isolated from the possible influence of large local shareholders. Another positive is when the issue is too large for the local market to accommodate. In addition, the expansion of a company's investor base, especially from leading financial centers, increases the demand for shares and, therefore, leads to an increase in share prices. This form of financing, especially for companies with a trademark, is in a certain way an advertising campaign. The trademark in the form of the name of the issuer falls into the funds mass media, covering events in financial markets. Corporate financial managers find other additional reasons for the need to issue shares abroad. This is confirmed by statistical data on the so-called “Yankee” shares sold by foreign issuers in the United States. During 1991-1996 their value increased from 5 to 16 billion dollars. Corporations issuing Yankee stock must meet certain requirements. These disclosure requirements financial information and reporting are among the highest, which entails significant costs. Therefore, a cheaper alternative to this instrument are American Depository Receipts (ADRs), which allow you to avoid complying with these requirements. ADRs indicate that their owners have shares of a foreign corporation and give the holders certain shareholder rights. The shares do not cross national borders, but remain in local custodian banks in the territory of the country issuing these securities. ADRs can be distributed by public or private placement. Public offering ADRs are sold to a wide range of investors. Private placement ADRs are distributed only to a limited number of shareholders. Public placement ADRs are divided into levels 1, 2 and 3. Level 1 ADRs are issued for shares in secondary circulation and are traded on the American over-the-counter market. Second-tier ADRs are also issued for shares in secondary circulation, but are traded through the NASDAQ over-the-counter trading system and American stock exchanges, which significantly increases their liquidity. Third-level ADRs are issued for shares during their initial placement, are used to increase the issuer's equity capital and are traded through the NASDAQ over-the-counter trading system and American stock exchanges. Thus, ADRs, for example, allow American investors purchase shares of Russian enterprises issuing ADRs without access to Russian market, export of shares from Russia to the USA, and obtaining appropriate permits for the import of capital into Russia. American Depositary Receipts are actively traded in almost all world markets. This is confirmed by the fact that they are listed on exchanges and electronic trading systems financial centers such as New York, London, Singapore, Berlin, Frankfurt am Main and others. For example, the total volume of depositary receipts included in the listing is approximately 5% of the total number of securities traded on the three leading US exchanges. Over the past two years, the market for ADRs issued on shares of Russian enterprises has become one of the most dynamically developing markets in the world. About twenty Russian companies have already completed programs for issuing ADRs. For foreign companies, ADRs currently represent the most attractive form of investing in Russian securities, since the growth rate of the latter is significantly higher than that of most foreign shares, and is also the main way to acquire large blocks of shares. In general, from the end of 2000 to November 9, 2001, the Russian ADR index of the Bank of New York grew by 31.4%, despite the general fall in the ADR indices of the Bank of New York for developing countries by 17.8% and for all countries by 24.0% over the same period. For domestic firms, ADRs provide an opportunity to enter into transactions with major Western companies that want to invest in securities of Russian issuers, but are afraid to directly enter our market due to many problems, such as imperfection legislative framework, a huge territory and the absence of a well-functioning mechanism for re-registration of ownership rights to securities. Obviously, for large international companies it is preferable to work with ADRs that are familiar to them, eliminating the risks that are typical for shares of emerging markets. Carrying out purchase and sale transactions of ADRs outside the country of issue of shares also allows you to avoid paying income tax and other local taxes.

The authorized depository bank, which issues ADRs for shares of Russian companies and carries out settlements on them, is The Bank of New York, custodial services (services of a custodian bank for shares) are provided by The Bank ING Eurasia. Trading ADRs on Russian shares is carried out mainly on the New York Stock Exchange NEWEX and the New York Stock Exchange NYSE. In 2001, NEWEX began trading ADRs for shares of RAO UES of Russia. On February 9, 2002, Wimm-Bill-Dann Foods announced an initial public offering (IPO) program. These ADRs were listed on the NYSE. ADRs were placed at $19.5 per share, each of which is equal to one share. 10.62 million receipts were placed, representing 25% of the capital plus one share. In addition to this company, ADRs for shares of only four Russian companies are traded on the NYSE: OJSC Rostelecom, OJSC Tatneft, OJSC VimpelCom, OJSC Mobile TeleSystems.

2.3. Foreign bank loans

In addition to foreign financing in stock markets, companies attract foreign bank loans, which represent the share of local bank lending that goes to foreigners for use abroad. As with foreign bonds, local laws often limit the amount of bank loans to foreigners. Lending to domestic businesses on international financial markets is carried out in the form of syndicated loans. These loans are provided by several lenders to one borrower, which allows the lender to significantly reduce risks. Since the mid-90s, Russian enterprises have been quite successful in borrowing money on a syndicated basis in the London and French commercial loan markets, as well as in the United States. In Russia, before the crisis in August 1998, foreign banks issued from 8 to 10 billion dollars in syndicated loans to various commercial structures.

Lending was mainly given to enterprises whose transactions and, in general, annual sales volume were at least $50 million. Moreover, either these are stable domestic sales or exports. The organizing bank and other loan participants place very high demands on the transparency of the borrower’s financial statements. In addition, the borrower must have a positive credit reputation, and the majority of his income must be denominated in the currency of the loan.

This form of funding is well suited for borrowers who do not have extensive experience in international markets. Having started his credit history with small loans, the borrower can subsequently count on lower rates and an increase in the volume of his borrowings in foreign markets, a transition to more complex forms of international financing, such as ADRs and Eurobonds, which will be discussed below. In general, when entering international financial markets, domestic entities relatively rarely resort to foreign bank lending. Foreign bank lending is carried out primarily at the intergovernmental level.

3.Eurocurrency long-term financing

Eurocurrency long-term financing represents the rest of international long-term financing. Unlike foreign, long-term eurocurrency financing is carried out in foreign currency for the country where it was applied. Moreover, the division between the three instruments remains similar to the division in foreign funding. Namely: for stocks, bonds and loans.

3.1 Global depositary receipts

When dollar-denominated depositary receipts are placed in markets outside the United States, they are called global depositary receipts (GDRs). The issue of GDRs is an integral part of the second direction of the international capital market - eurocurrency long-term financing. GDRs are traded on the European market, issued in initial public offerings and listed on stock exchanges. The principle of their circulation is the same as that of ADRs. Similarly, GDRs are securities issued not by the issuer itself, but by the depositary bank, which also gives them greater weight in the eyes of potential investors, in particular foreign ones. At the end of December 2000, Aeroflot OJSC entered into a deposit agreement with Bankers Trust Company on the issue of Level 1 global depository receipts in the amount of 20% of the authorized capital. Bankers Trust Company is part of the Deutsche Bank group, which is an impeccable guarantee of the reliability of these receipts. Russian GDRs are listed primarily on the London and Frankfurt stock exchanges. GDRs from about several dozen Russian issuers are represented on both exchanges. The largest share among them is made up of the companies “Surgutneftegaz”, “Yukos”, RAO “UES of Russia”, “Mosenergo”, “Tatneft”, “Irkutskenergo”, “Samaraenergo”.

3.2 Eurocurrency loans

In addition to GDRs, eurocurrency long-term financing includes eurocurrency loans and eurobonds. Eurocurrency loans are denominated in a freely convertible currency deposited in a bank located outside the country of origin. The emergence of the Eurocurrency credit market after World War II was associated with the USSR's fears that its dollar deposits in American banks may be arrested based on statements from American citizens who lost property during the revolutionary changes in Soviet Russia. As a result, these deposits were transferred to British and French banks. But the real reason for the existence and development of the Eurocurrency market is the existence of government restrictions, such as reserve requirements for bank deposits, taxation banking, limiting interest rates on deposits and loans, creating an unequal position for domestic and foreign banks. However, in Lately There has been a tendency to lift restrictions and equalize costs and interest rates in the local and Eurocurrency markets.

The most important characteristic of the Eurocurrency market is that loans here, unlike the local credit market, are carried out on the basis of a fixed premium over one that changes every day interest rate LIBOR (London Interbank Offered Rate). This allowance is usually reviewed every six months. Its value depends on the level of risk perceived by the investor for lending to a particular borrower. If the risk of default is minimal, the premium may even be negative. Some borrowers with high credit ratings (various large corporations and banks) and supranational institutions (for example, the World Bank) take out loans at prices below LIBID (London Interbank Demand Rate). LIBID is the interest rate paid by one bank to another for an attracted deposit, and is set below LIBOR by approximately 0.125%. This practice expresses a tendentious phenomenon of reducing the role of LIBOR as a starting point in setting the price of a loan. On the other hand, in an environment with high uncertainty, the LIBOR risk premium premium can be as high as 4-5%. In June 2001 Zenit attracted a Western syndicated eurocurrency loan in the amount of $20 million for one year at the rate of LIBOR + 4%. This is the first similar case since the Russian default in 1998. For corporate borrowers counting on Western financing, a benchmark for the cost of money has appeared. The loan was arranged by London's Standard Bank. The lead managers of the loan were Credit Suisse First Boston, Dresdner Bank, Moscow Narodny Bank and Ost-West Handelsbank.
The loan is quite expensive, but Zenit’s main achievement in in this case is not attracting money, but creating a credit history. Although on the domestic market it would not be easy to borrow a significant amount in foreign currency at such an interest rate. In principle, this is a confirmation that trust in Russian banks returns. We can expect that other banks will also begin to borrow on the foreign market, but will wait for more favorable conditions. Before the 1998 crisis, private banks received syndicated loans for more than low interest(on average LIBOR + 3%).

Eurocurrency loans are issued for a period of approximately three to ten years. Currently, there is a tendency to increase this period. Ten-year loans for prime borrowers are becoming common. Lenders in this market are exclusively banks, which typically form syndicates for large-scale lending. The bank that receives the lending request usually manages the syndicate. He invites several more banks to participate in lending. Depending on the size and type of loan, the syndicate receives a commission from 0.25% to 2% of the loan amount. In the case of a credit line allocated for the unused part of the loan, the borrower pays about 0.5% on an annual basis, and in case of early repayment of part of the debt that was not agreed upon in advance, fines are paid. At the end of all preliminary calculations of future payment streams, the borrower must determine the effective interest rate, which, in contrast to that fixed in the future loan agreement, is equal to the fraction of dividing the actual costs incurred for organizing and servicing loans by the amount of funds actually received. The resulting effective interest rate may influence the financial manager's decision to select a source of long-term financing. If we compare eurocurrency lending and lending for domestic markets, then the interest spread (the difference between loan and deposit rates) for the first type is generally narrower than for the second. It often happens that borrowing, for example, dollars will cost more in their country of origin, the USA, than in the UK. This paradox occurs due to the state exchange control in various embodiments. However, even in its absence, this phenomenon may occur, which in turn is due to the possibility of establishing currency controls in the future. In particular, lending rates may be lower in Eurocurrency banking markets due to lower lending costs, not only as a result of the absence of exchange controls and taxes on such transactions in these markets, but also due to the fame of the majority of borrowers, which reduces the cost of collecting information on them and her analysis. Also, a large volume of eurocurrency credit, which is also characterized by standardization, helps reduce costs loan agreements and their implementation by telephone or telex, during which no real movement currency as in the case of domestic and foreign loans, but only a transfer of rights and obligations. A large volume is provided by a syndicate of banks, which is fundamentally different from a local loan, which is issued, as a rule, by one bank.

Eurocurrency lending, carried out mainly in dollars, can occur in various currencies. In this regard, more and more loan agreements include a multi-currency clause, which gives the borrower the right to convert the loan into any other specified currency on a certain date. As a result, the borrower is able to more effectively synchronize its foreign currency payments and receipts.

3.3. Eurobonds

The fundamental feature of the eurocurrency lending mechanism is that investors open short-term deposits in banks, which these banks, acting as intermediaries, convert into long-term loans to final borrowers. Eurobonds, as an alternative to bank lending for eurocurrency financing, are issued directly by the end borrower, bypassing intermediaries, mainly banks. However, banks are also involved in the issuance and distribution of Eurobonds. Eurobonds are bonds sold outside the country in whose currency they are denominated. They, like foreign bonds, consist of floating (a fixed premium over LIBOR) and fixed rate bonds and equity derivatives. Unlike local and foreign markets almost completely absent from the Eurobond market government regulation and taxation (which is the reason for its existence), but instead it is regulated by the International Securities Markets Association (ISMA), created by the market participants themselves. This organization unites approximately 1,000 financial institutions from various countries. ISMA is self-regulatory organization, its decisions are not of a directive nature, but are advisory for market participants. However, all members of the Association prefer to comply with advisory rules that streamline the market, ensure its liquidity and make it attractive to both issuers and investors. Eurobonds are issued to bearer, which preserves the anonymity of the investor and allows him to avoid taxation. In addition, Eurobonds are simultaneously placed on the markets of several countries, as a result of which they are not subject to national regulatory systems, including in terms of borrowing volumes. Historically, the volume of lending on the Eurobond market was significantly less than on the Eurocurrency market. But over the past 15 years, its size has increased sharply and now exceeds the volume of the Eurocurrency banking market. Currently, the volume of Eurobonds in circulation is approximately 3.5 trillion. US dollars. The main reason for the growth of this market is the emergence of swap transactions (from English swap-exchange) - a financial transaction to exchange payment streams for a certain time. It accounts for 70% of all Eurobonds. The exchange occurs both as payments at a fixed interest rate for payments at a floating one, and as flows in one currency for flows in another. As a result, the borrower penetrates the market different currencies. For example, if his bond is in high demand, given that it is denominated in one currency, and he needs another currency, then the borrower issues his bond in the first currency at more favorable conditions and exchanges the received funds for a second currency using a swap. Preference for a particular currency depends on several factors, for example, on the level of interest rates for a particular currency. But in general, about 75% of Eurobonds are denominated in dollars.

As a rule, a redemption fund and a sinking fund are pledged against Eurobonds older than seven years. The first is used for redemption if the market price is set below the issue price. The sinking fund is spent on the redemption of a fixed portion of Eurobonds after a certain number of years have passed from the date of issue. These funds support market price bonds and reduce the risk that the borrower will have to repay the entire loan amount at once.

Borrowers in this market for the most part have well-known names and an impeccable credit history, which gives them the opportunity not to participate in ratings and not to spend money on paying for the services of rating agencies. This does not apply to newcomers, from whom the investor requires participation in the rating for evaluation. credit risk. For issuers-subjects of the Russian Federation, it is necessary to obtain an international credit rating - in accordance with the Presidential Decree - from two agencies. Leading international agencies Those assigning ratings to Russian issuers of Eurobonds are Standard & Poor's, Moody's and IBCA. The place in the rating is determined by the issuer’s ability to generate cash flows in the currency in which the debt is denominated. The process of issuing Eurobonds is quite labor-intensive and includes a number of procedures, such as conducting a preliminary analysis of the issuer, compiling rating books and obtaining an international credit rating, preparing an information memorandum for investors, drawing up legal documentation for the issue, conducting presentations for investors in Russia and abroad, securing placement securities issued by a syndicate of underwriters, etc.

The issue of Eurobonds can be organized by an international syndicate of brokers or underwriters in the form of programs that allow issuance in several tranches, which makes it possible to more flexibly attract resources from international markets. The reason for syndication lies in the fact that, unlike foreign bonds, Eurobonds are sold simultaneously in several countries. Extreme case when even more than a hundred banks participate in the issue in the amount minimum size issue of 25 million dollars. In this case, both the investor and the borrower solve, through diversification, the problem of reducing risk from the undesirable influence of uncertainty in the partner’s behavior. An alternative option for forming a bank syndicate for underwriting is to issue Eurobonds on a private basis due to the inherent simplicity, speed and anonymity of this mechanism. The main volume of transactions with Eurobonds is carried out on the over-the-counter market (OTC - over the counter), although to facilitate investor access, Eurobonds are registered on one of the world's exchanges. All Russian Eurobonds are issued in book-entry form and registered on the Luxembourg Exchange.

Settlements for transactions with Russian Eurobonds are carried out through special settlement banks, Euroclear systems, Brussels, and Clearstreem Banking, Luxembourg (formerly Cedel). After the financial crisis of 1998, these clearing systems suspended the opening of accounts for Russian investors. However, it is possible to open safekeeping accounts in banks that have such accounts, for example, in the depository of Alfa-Bank. The main centers for trading Russian Eurobonds traditionally remain London, New York and Moscow. The main trading volume takes place on the interbank market; large volumes are traded through brokers serving professional participants market. Many Russian bonds are listed on European exchanges, but the exchange turnover of Eurobonds is very small. However, according to the Emerging markets traders Association, which unites leading traders in emerging markets (mainly foreign banks) and coordinating the actions of its participants, there is a steady increase in turnover in this market. It is obvious that, as in the case of Euroloans, Russian borrowers such as Rosneft, Sibneft, Gazprom, Lukoil and many other top-notch Russian companies issue Eurobonds largely for the purpose of creating an image good borrower, which will give them the opportunity to borrow significantly more money on the international capital market at lower costs. Recently, the Russian Eurobond market has experienced a fairly strong price increase due to the favorable situation in the budgetary sector: a positive current account balance, increased exports and increased foreign exchange earnings allowed the Russian Central Bank to accumulate gold and foreign exchange reserves at a record pace. Government statements about Russia's readiness to pay its dues external debts V in full, as well as his efforts in the sphere of settling the debts of the Russian Federation to international financial institutions, increase investor optimism. Obviously, the probability of Russia defaulting, at least in the next 1-1.5 years, is zero. In addition, Russia has always been very scrupulous about servicing its Eurobonds, paying punctually coupon income and the amount of the principal debt even in the crisis years of 1991 (Eurobonds of Vnesheconombank of the USSR) and 1998-1999. The redemption of the first issue of Eurobonds worth more than $1 billion on November 27, 2001 was another reason for the increase in their prices. On the Russian Eurobond market there are still good returns, its volume is quite large, and most securities are very liquid. In the context of the continuing fall in rates on major world currencies and the US dollar in the first place (the refinancing rate in the US is 2% per annum and its further reduction is still possible), investments in Russian Eurobonds with 10-12% coupons, of course, represent a serious interest for many international investors. At the same time, despite positive fundamental indicators, technical corrections in Russian bond prices in the present and future are very likely. The reasons for such drops may be a decrease in world prices for raw materials, and primarily for oil, Russia’s dependence on the state of the economies of the USA, Japan and Europe, as well as the situation in other emerging markets, such as Argentina, Brazil, Turkey, etc.

4.Decision process for international long-term financing

In general, the process of making a decision by a subject on choosing a specific international long-term instrument includes not only analysis and forecasting of trends in global capital markets, but also the study of all elements of the domestic environment. For example, the political environment within the country of the financing entity sometimes has a decisive influence on the choice of a particular method of attracting international capital. In the case of a Eurocurrency loan issued on a syndicated basis, the Russian borrower is not limited in terms of the loan amount. While a conventional loan has a standard Central Bank, and for a bond loan there is a standard for ensuring liquidity of $100 million. Optimal sizes syndicated loans range from 20 to 300 million dollars. The organization period ranges from 8 to 13 weeks, and there are no taxation features, unlike a bond issue. Disclosure requirements are determined by the borrower himself, in negotiations with the financial adviser, who is himself a lender and decides what information requirements can lead to the success of the loan placement.

In addition to the international and intra-country environment and the internal environment of the entity itself, in order to determine the optimal instrument for international long-term financing, the entity needs to evaluate and weigh all the advantages and disadvantages inherent in each of these instruments. For example, unlike a Eurocurrency loan, for which the interest rate is floating, Eurobonds are also issued with a fixed interest rate, which reduces the borrower's risks, since known payments on these bonds are covered by known, planned inflows in the same currency. Despite the fact that the borrowing period in the market for Eurocurrency bank loans is constantly increasing, the duration of Eurobonds is still longer, which reduces the costs of Eurobond financing of long-term projects. On the other side, the average size lending to one borrower on the Eurocurrency banking market is higher than on the Eurobond market (although overall volume the latter currently exceeds the size of the former market). Moreover, the costs of organizing a Eurocurrency loan are significantly lower than those in Eurobond financing (approximately 0.5% of the cost of the entire loan versus 2.25% of the nominal value of the bond). Another disadvantage of Eurobonds lies in their inflexibility, because they are repaid in a certain amount according to a fixed schedule. Negotiations with creditors are almost impossible due to their large number. In the case of a eurocurrency loan, it is possible early repayment at a time convenient for the borrower with the payment of a small penalty in the amount of approximately 0.5% per annum of the unused amount, and payments can be made immediately or in parts. Also, eurocurrency loans from currency clause enable the borrower to convert a loan into another currency on a certain date, whereas such a transaction with Eurobonds will be accompanied by high costs of re-issuing and placing bonds in another currency. Although it would be cheaper to sell a forward contract for the borrower to supply the undesired currency in which the Eurobond is denominated in exchange for the preferred currency on the date the debt is due. The currency conversion operation for a Eurobond can also be carried out through currency swaps, which enable the borrower to convert the funds raised from the bond into another currency, followed by a reverse operation at the time of repayment of the debt. Another advantage of Eurocurrency lending is the fast loan processing procedure, often within 2-3 weeks for first-class borrowers. But recently, the difference in the terms for obtaining two types of loans is not as noticeable as before.

After analyzing the target criteria of the international situation, the in-country environment, the internal environment of the financed entity and the advantages and disadvantages of a particular type of international long-term financing, it is necessary to consider in detail all the received elements for their compatibility in accordance with the developed financing strategy. Next, the capital financing instrument that most satisfies all these elements of the analysis is selected. In general, the process of accepting this financial decision quite labor-intensive and sensitive to the subject’s environment. For Russian subjects There are still high barriers to entry into international financial markets. This is due primarily to the transitive nature Russian economy, characterized in this perspective by high uncertainty and different business practices from the West. It can be concluded that only large, reliable companies. As a rule, these are monopolists primarily in the fuel and energy complex and telecommunications, whose assets are capable of generating significant cash flows on a stable basis.

Long-term financing

Managing the attraction of borrowed investment resources is a targeted process of their formation from various sources and in different forms in accordance with the needs of the enterprise for borrowed capital at various stages of its development. The variety of tasks solved in the process of this management determines the need to develop a special investment policy in this area at enterprises using a significant amount of borrowed capital.

Borrowed capital is characterized by the following positive features:

1. Sufficiently wide opportunities for attraction, especially with a high credit rating of the enterprise, the presence of collateral or a guarantee of the recipient.

2. Ensuring the growth of the financial potential of the enterprise if it is necessary to significantly expand its assets and increase the growth rate of the volume of its economic activities.

3. Lower cost compared to own capital by ensuring the effect of a “tax shield” (withdrawal of costs for its maintenance from the tax base when paying income tax).

4. The ability to generate an increase in financial profitability (return on equity ratio).

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

1. The use of this capital generates the most dangerous financial risks in the economic activity of an enterprise - the risk of reduced financial stability and loss of solvency. The level of these risks increases in proportion to the increase in the share of the use of borrowed capital.

2. Assets formed from borrowed capital generate a lower (other things being equal) rate of profit, which is reduced by the amount of loan interest paid in all its forms (interest for Bank loan; leasing rate; coupon interest on bonds; bill interest for trade credit).

3. High dependence of the cost of borrowed capital on fluctuations in financial market conditions. In a number of cases, when the average interest rate on the market decreases, the use of previously obtained loans (especially on a long-term basis) becomes unprofitable for the enterprise due to the availability of cheaper alternative sources of credit resources.

4. The complexity of the attraction procedure (especially on a large scale), since the provision of credit resources depends on the decisions of other economic entities (creditors), requires in some cases appropriate third-party guarantees or collateral (in this case, guarantees from insurance companies, banks, or other economic entities are provided usually on a paid basis).

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

Taking into account the chosen asset financing scheme, a system of sources of raising capital for the enterprise is formed. At the first stage life cycle enterprises, the composition of these sources is limited and somewhat specific. The main sources of formation of the assets of the created enterprise are shown in Fig. 1.

At present, there is practically no single indicator with which one can unambiguously determine the feasibility of choosing one or another method of financing, therefore, various options are usually considered and the best is selected using profitability indicators.

Financing depends on the method of raising additional funds by:

issue of shares;

bond issue;

obtaining a loan at a percentage specified in the agreement.

However, choosing the appropriate financing method is often quite a difficult task. The most rigorous method of analysis is the use of computational parameters RD (the amount of income per share) and P (profit before payment of income and interest).

For the first case, it is necessary to determine the number of shares that need to be issued and their selling price. In the second case, this is the volume of the issue, the nominal value of the bonds and the interest on them. The third case involves determining the required amount of borrowed funds and the expected interest on them.

Figure 1 - Characteristics of the main sources of formation of enterprise assets

The choice of a certain method of financing leads to changes in the capital structure of the company. However, in addition to the data provided, it is necessary to analyze the consequences that the enterprise will face as a result of the implementation of its program.

Such consequences may be:

the need to ensure constant debt service payments;

incurring costs associated with the issue and placement of issue-grade securities.

Before accepting a particular investment project, it is necessary to consider its feasibility with a set of objective criteria. To do this, you need to formulate basic requirements for investment projects and determine the indicators that should be used when accepting investment projects.

So, a very important characteristic in enterprise asset management is the assessment of attracted resources, own or borrowed.

• 1. Traditional methods of long-term financing.
• 2. Advantages and disadvantages of urgent bank loans.
• 3. Leasing.

Traditional methods of long-term financing

There are many long-term financing options available:

• - Russian banks;
• - Foreign banks;
• - Portfolio investors - private funds;
• - Portfolio investors - “relief” funds;
• - Strategic investors.

Russian banks know the local situation better than any other source of funding, they:

• - speak the language and know the culture, understand the historical and current situation of Russian enterprises;
• - understand Russian financial statements and accounting system;
• - can offer advice on reducing financing costs based on their experience.

On the other hand, they are extremely risk averse and will require substantial collateral.

Foreign banks: a Russian enterprise must comply with the credit strategy of banks.

Most foreign banks are very picky about the businesses they lend to. Some Russian enterprises have already received financing from foreign banks through their branches registered abroad, but this is very difficult to organize.

Debt financing obtained from foreign banks, perhaps for a longer period and at a lower cost than what is received from Russian banks. They also have access to large amount capital.

Portfolio investors provide Russian enterprises with a significant source of financing. Portfolio investors include investment funds, venture capital funds, pension funds, insurance funds, etc.

They seek to find a combination of income from dividend payments and from increases in the value of fixed assets (increasing the value of shares). They do not need and usually do not seek to receive controlling stake shares But portfolio investors usually want to have a say in how the business is run, namely:

• - voting at the meeting of shareholders;
• - representation on the Board of Directors.

"Relief" funds are investments supported by foreign governments:

1. Usually considered small investment between $50000-

• 2. Invest in small and medium enterprises.
• 3. Have a greater willingness to invest in times of political and economic instability.

However, because they are supported by foreign governments, their decision-making process is influenced by many political factors that are difficult to predict and impossible to control.

Strategic investors, those who know the business and have connections who can mitigate the risks of specific projects may also consider financing projects that other sources refuse to consider, or for which they charge excessively for financing high level income.

New methods of long-term financing.

Other less common but emerging methods of long-term financing:

• - public issues of shares/characters (Russian, foreign);
• - bonds;
• - convertible bonds;
• - leasing.

Initial public issue- the company's first public offering of shares. Typically, the securities offered in an initial public offering are shares of young companies raising equity capital. Investors buying such stocks must be willing to accept great risk for the opportunity for greater profit.

Bond- an issue-grade security containing the issuer’s obligation to pay its owner (creditor) the nominal value at the end of a specified period and periodically pay a certain amount of interest.

Bonds are issued by governments, local governments, or companies in the form of fixed- or variable-rate securities. Most bonds are unsecured and do not provide the right to participate in management.

Repayable in kind - a bond that gives the issuer the right to make (in the initial period) coupon payments in cash or by issuing additional obligations.

In the United States, a government bond accepted for payment of estate taxes at face value is a government bond accepted at face value for payment of federal estate taxes if it belongs to the deceased at the time of death.

Convertible bond - a bond that gives the investor the right to choose whether to consider this security as a pure bond with a yield built into its terms or, upon reaching a specified period, convert it into a certain number of (common) shares.

The idea of ​​issuing convertible bonds is to attract investors who are interested not only in receiving a fixed income, but also in growing their investment if the company's shares rise.

Leasing - entrepreneurial activity, generating income due to the temporary assignment by the owner of the right to exclusive use of the property to third parties (lessee) for a specified fee. According to the legislation of the Russian Federation - this type investment activities for the acquisition of property and its transfer on the basis of a leasing agreement to individuals or legal entities for a certain fee, for a certain period and on certain conditions stipulated by the agreement.

In terms of economic content, it is a form of lending without transferring ownership of the goods to the lessee.

Leasing is an alternative to traditional bank lending.

Rent for a period from 6 months to 15 years of technical equipment and structures for production purposes. Leasing is carried out on the basis of an agreement between a leasing company (lessor), which acquires property at its own expense and leases it out, and a lessee company (lessee), which gradually pays rent for the use of leased property.

During the period of validity of the contract, the ownership of the leased property belongs to the lessor, and the right to use belongs to the lessee.

Leasing, which includes additional obligations - leasing, which involves mandatory maintenance of equipment, its repair, insurance and other operations for which the lessor is responsible. Leasing of this kind is used either by equipment manufacturers or wholesale organizations that have the necessary technical base.