Plan the main sources of business financing. Choosing a source of financing for a business project or development of an existing small business. State budget financing

Where can I get a source of finance for a business or individual projects? As part of the article, all options will be considered: both easy and complex. Also, attention will be paid to popular methods of obtaining Money, and rather obscure or complex.

general information

Business financing is the possibility of providing funds for which the internal processes of a company or enterprise will be carried out. Conventionally, the sources of money, depending on the place of their occurrence, can be divided into two groups:

1. Internal.
2. External.

The former include net profit, depreciation, accounts payable, stable liabilities, reserves for future expenses and payments, as well as deferred income. The second includes the authorized capital, funds of the state, citizens, financial and credit organizations, founders and participants.

When and where and what is used?

Internal business financing implies the use of those resources that are generated in the implementation of economic activity commercial structure. In general, this is a more desirable option. Whereas external financing of a business involves the receipt of funds from the outside world. Conventionally, they can be divided into those that come in the order of distribution and are mobilized in the market of monetary instruments. Before continuing the article, let's list all the sources of business financing.

Where can you get money?

The sources of formation always act as the basis and grouping:

1. Formed through their own means.

I. Authorized, additional and reserve capital.

II. Net and retained earnings.

III. Depreciation.

IV. Accounts payable.

V. Sustainable liabilities.

VI. Revenue of the future periods.

VII. Target income.

VIII. Reserves for future payments and expenses.

IX. Other receipts.

2. Mobilized in the financial market.

I. Credit.

II. Dividends and interest received from holding securities of other issuers.

III. Income from operations with precious metals and foreign currencies.

IV. Interest on the use of previously provided funds.

V. Sale of own securities.

3. Received in order of distribution.

I. Financial resources that were formed on a share basis.

II. budget subsidies.

III. Insurance premiums.

IV. Receipts from associations, industry structures and holdings.

Peculiarities

It should be noted such a pleasant fact: financial resources, in contrast to labor and material, are exceptionally fungible. And now about the negative: they are also subject to devaluation and inflation. And one more thing, but it is more a matter of personal position. Previously, only two main groups were given. Some researchers do not mention external sources as such, but speak of attracted and borrowed funds, as well as mixed (combined) financing. These three possibilities will be considered separately.

Most topical issue, for the solution of which money is actually attracted, is the need to expand or update the main production assets. Therefore, the specifics of fundraising and business financing will be discussed with an eye to this aspect.

Internal sources

Enterprises are independently engaged in the distribution of that part of the income that remains at their disposal after deducting the amounts of cost and taxes. Rational use of funds involves the implementation of plans for the further development of the enterprise while respecting the interests of owners, investors and employees. There is, however, one rule. How more profit goes to the expansion of economic activity, the less the need for additional financing. At the same time, the value largely depends on the profitability of the operations carried out and the dividend policy adopted within the enterprise.

This method of raising funds has wonderful advantages: there is no need to incur additional costs, and the owner retains control over the enterprise. Alas, there are also disadvantages. The most significant is the impossibility of applying this approach. So, in the case of fixed assets, the sinking fund can be depleted. And then you have to look for other ways to get funding.

Fundraising

This path is quite diverse, it has many positive and negative aspects. Due to the wide range of possibilities, external sources will receive the most attention. When looking for this type of investment, you should be aware that investors are interested in high profits, the company itself, as well as the share of ownership that they will receive.

How more money will be invested, the less control will remain with the original owners of the enterprise. The redemption for the market price or a certain coefficient depending on the income of the enterprise can be separately agreed. And you need to understand that this is more suitable at least for medium-sized enterprises and larger ones. Something can be said about financing small businesses, but this is more an exception than a regular practice. Well, in this case, it remains to concentrate on borrowed funds. For business, leasing and credit are the most suitable. Many people compare them and say that they are literally identical, but they are not. Let's see why.

Loans

These are the most famous main sources of business financing. A loan means a loan in cash (rarely in commodity) form, which is provided on a repayment basis. It provides for the payment of interest for its use. The advantage of a loan is that the receipt and use of funds, as a rule, is not subject to special conditions. And in the case of issuance by a bank where the enterprise is serviced, it is issued quite quickly and without delay.

There are, however, certain disadvantages. Thus, the term of issue rarely exceeds three years. Therefore, for enterprises that focus on long-term profit, it is unbearable. Also, the disadvantage is the requirement to provide a deposit, which is equivalent to the amount issued. Can, although rarely, be put forward certain special conditions like opening a bank account that offers a loan. And this may not always be beneficial to the enterprise. Also, due to the use of the standard depreciation scheme, the company will be forced to pay property tax all the time while using the loan.

Leasing

We are finishing considering the sources of financing for small businesses and will focus on a not very popular and well-known tool, which, nevertheless, is very worthy if you understand its essence.

So, leasing is a special complex form entrepreneurial activity, which allows one side to effectively update the used fixed assets, and the other to expand the boundaries of its presentation. And this happens on terms that satisfy both parties. If we talk about business financing programs from external sources, then this can be called the best option.

What are the advantages of leasing? First of all, the lack of a down payment and the requirement to immediately start paying. Whereas in the case of a loan, you need to make from 15% to 60% of the down payment. Thanks to this, an enterprise that does not have significant financial resources, may start to implement major project. In addition, using this tool is much easier than proving that you can afford a loan. It is the financing of business projects at the stage of their inception that allows you to make a choice in favor of leasing. In addition, the agreement is more flexible. After all, in this case, the company independently calculates how much income it will have, and according to what scheme it will work. It can be agreed that debt repayment will come from the funds that will come from the sale of products. And after the payment of the entire amount, the property becomes the property of the company.

Many aspiring entrepreneurs are looking for sources of business financing to start their own business. It could be a loan, an investment, or a grant. In the article we will talk about the features, advantages and disadvantages of these types of investments.

Today, there are plenty of ways to find money to start your own business, which allows a budding entrepreneur to organize a small, medium or large business.

Main sources of funding

Distinguish between external and internal funding. The internal is to use equity(net profit, deductions), and external - in the use of borrowed and attracted capital.

For the organization of entrepreneurship often requires external investment. This may be a bank loan, third-party investment and a grant. These features will be discussed later. In the case of an organization, self-financing can be used. Naturally, this the best option, because you do not have to pay an interest rate or "share" with someone your new source of income.

Direct and debt financing

Today, debt financing is considered the main source of raising money. It is beneficial in that it does not imply a partial sale of the business to another person. Often, borrowing capital brings good results. The main goal of such investments is not to gain complete control, but to fix income for a period of 1-3 years.

Direct investment is investment in share capital to generate income and become eligible to participate in the management of the company. The investor has the right to participate in the board of directors, he influences the formation and change of the business management team, proposes strategies for the development of the enterprise. As world practice shows, direct investment is the purchase of more than 10% of the authorized capital of an enterprise.

The way of investing is chosen depending on your goals. If you are going to open a large production, it is much more efficient to take.

How to get funding?

How to get financing is an important issue that worries not only beginners, but also more experienced entrepreneurs. It is necessary to look for financing options after the business plan of the project has been drawn up. This is an extremely important document, without which one can hope for foreign investment. Banks and investors need to provide a plan. It is important for banks to make sure that the loan is repaid on time. As for investors, they should know after what time the enterprise will become profitable and profitable for them. About why you need and how to develop a business plan,.

When looking for funding, you must go where they want to see your plan. Present it without exaggerating sales volumes and try to make it different from other plans. If you own the property where you plan to set up a business, for example, open a chip factory, a bakery, or something similar, and the value of this property is enough to repay the loan, then you can count on a loan from almost any commercial bank.

Benefits of lending

Often business lending commercial banks is carried out without problems, but only if the business is already developed and brings a stable income, or if the borrower has already developed one business and is going to open a new one. If you are going to borrow money to start a business from scratch, prepare for difficulties.

Consumer loan in a bank

If you're more attracted, well oh large enterprise you do not hesitate, take a consumer loan from a bank. Many Russian banks give loans up to 100,000 rubles without collateral without proof of income and without guarantors. To obtain more serious amounts on credit, you will need a guarantee, collateral or certificates.

Money secured by property

If you have a car, apartment, non-residential premises or other valuable property, you can take a loan secured. For the development of large businesses, often the funds offered by the bank are not enough. We also note that only with 100 percent confidence in success, you can think about lending.

Investment

Investment- a good option to get money to start your own business. The search for investors is that you need to find a partner who is ready to partially or fully finance your endeavors.

Finding an investor is a difficult but quite real task. Investors are prudent and cautious people, they will not give you money for something that can fail. To attract investors or partners, you will need a carefully thought-out business plan, and it is better to turn to specialists on this issue. About how to develop this document Lenders need to be more than confident that the business they are investing their own money in will be profitable for them.

How to get a grand?

grand is the best alternative bank loans and other types of financing. The advantage is obvious: the grand does not need to be returned. But keep in mind, grants are not designed for you to waste money just like that. The one who pays the money is interested in you solving his problems.

Often on business grants allocated for the development of small and medium-sized businesses budget resources. Money is paid by those who wish to develop a priority type of activity for a certain region. For example, it is quite possible to receive a grant to create a waste processing plant, research new energy-saving technologies, and improve environment etc.

Grants are provided under innovative projects where there are serious scientific developments. The main Russian source of grants is the State Fund for Assistance to the Development of Small Forms of Enterprises in the Scientific and Technical Sphere. Sometimes the money allocate big manufacturing companies who are also interested in the development of high technologies.

Finally, let's say that one of the most promising directions, where serious investments are not needed, is a business on the Internet, the ideas of which can be. In this area, several thousand rubles are enough, you can also engage in activities where you do not need money at all, only knowledge.

No company can exist without financial investments. It does not matter whether the business project is at the beginning of implementation or has been in existence for several years, its owner faces a difficult task - to constantly look for and find sources of business financing.

Main types of business financing sources

Finance refers to the total amount of funds that ensure all the activities of the company: from solvency to suppliers and landlords in the present to the possibility of expanding the scope of interests in the future.

Unfortunately, from time to time there are reasons that impede the smooth and uninterrupted operation of the enterprise. Among them may be:

• funds from the sale of products come later than it is time to pay off debt obligations,
• inflation devalues ​​the income received so that it is impossible to purchase raw materials for the production of the next batch of goods,
• expansion of the company or the opening of a branch.

In all of the above situations, the company has to look for internal and external sources of financing.

Funding source - a donor resource that provides a permanent or temporary inflow of tangible and intangible funds. The more stable the company's business is, the higher its liquidity in the economic market, so the main headache for an entrepreneur is to find the best source of financing.

Types of funding sources:

• interior,
• external,
• mixed.

Financial analysts insist on the idea that the main sources should be rooted in several different sources, because each of them has its own characteristics.

Internal sources

Internal sources financing is a set of all own tangible and intangible resources of the organization that were received as a result of the company's work. They are expressed not only in money, but also in intellectual, technical and innovative resources.

Internal sources of business financing include:

• cash income,
• depreciation deductions,
• issued loans,
• withholding salaries,
• factoring,
• sale of assets,
• reserve profit,
• redistribution of funds.

Income in money

Profit from the sale of a product or service belongs to the owners of the company. Some of them are paid as legal dividends to the founders, and some go to ensure the company's performance in the future (purchase of raw materials, pay for labor, utility bills and taxes). Best suited as a source.

Depreciation deductions

This is the name of a certain amount set aside in reserve in case of breakdown or wear and tear of equipment. It should be enough to buy new technology without the risk of getting into other sources and assets. They can be used as an investment in a new idea.

Internal sources of business financing

Issued loans

Those funds that were issued to customers on a loan basis. If necessary, they can be claimed.

Withholding salaries

The employee has the right to receive payment for the work done. However, if additional investment is required new project, you can refrain from paying for a month or two, having previously agreed with the staff. This method carries a lot of risk, as it increases the debt of the company and provokes workers to strike.

Factoring

The ability to defer payments to the supplier firm by promising to pay everything with interest later.

Sale of assets

An asset is any tangible or intangible resource that has a price. If the business or its members have unused assets such as land or warehouse space, then they can be sold, and the proceeds can be invested in a new, promising project.

Reserve profit

Money that is set aside in reserve, in case of unforeseen expenses or to eliminate the consequences of force majeure and natural disasters.

Reallocation of funds

It will help out if the organization is simultaneously engaged in several directions. It is necessary to determine the most productive one and transfer finances to it from the rest, less effective ones.

Internal financing is preferable, since it does not imply outside interference with subsequent partial or even complete loss of basic control over the activities of the enterprise.

External sources

External sources of financing is the use of funds received from outside to continue the activities of the company.

Depending on the type and duration, external financing can be attracted (from investors and the state) and borrowed (credit firms, individuals and legal entities).

Examples of external funding sources:

• loans,
• leasing,
• overdraft,
• bonds,
• trade loans,
• equity financing,
• merger with another organization
• sale of shares,
• government sponsorship.

Types of external sources of business financing

Loans

A loan is the most common way to get money for development, because you can not only get it quickly, but also choose the most suitable program. In addition, lending is available to most business owners.

There are two main types of loans:

• commercial (provided by the supplier in the form of a deferred payment),
• financial (actual cash loan from financial institutions).

The loan is issued under working capital or company property. Its amount cannot exceed 1 billion rubles, which the company is obliged to return within 3 years.

Leasing

Leasing is considered one of the types of lending. It differs from a regular loan in that an organization can rent machinery or equipment and, carrying out its activities with their help, gradually pay the full amount to the rightful owner. In other words, it's a full installment plan.

On leasing it is possible to rent:

• the whole enterprise
• piece of land,
• building,
• transport,
• technique,
• real estate.

As a rule, leasing companies meet and provide the most profitable terms to the borrower: they do not require collateral, do not charge interest and individually draw up a schedule for accepting payments.

Leasing is much faster than a loan due to the absence of the need to provide a large number of documents.

Overdraft

An overdraft is a form of lending by a bank when the main account of an enterprise is linked to a credit account. The maximum amount is equal to 50% of the monthly cash turnover of the company itself.

Thus, the bank becomes an invisible financial partner, which is always aware of the commercial situation: if an organization needs investments for any needs, funds from the bank are automatically credited to its account. However, if by the end of the agreed period the issued money is not returned to the banking institution, interest will be charged.

Bonds

Under bonds, a loan with an interest rate is assumed, which is issued by the investor.

By time, there can be long-term (from 7 years), medium-term (up to 7 years) and short-term (up to 2 years) bonds.

There are two types of bonds:

• coupon (the loan is paid with an equal percentage breakdown for 2, 3 or 4 times during the year),
• discount (the loan is repaid several times during the year, but the interest rate may vary from time to time).

Trade loans

This method external funding is suitable if the enterprises cooperating with each other agree to receive payment in in kind, a product or service, that is exchange product.

Leasing as a form of external financing

Equity financing

Such a source is involvement in the founders of a new member, investor, which, by investing in authorized capital, expand or stabilize financial opportunities companies.

merger

If necessary, you can find another company with the same funding problems and merge firms. With economies of scale, partner organizations can find a better source. How? To take the same loan, the company must be licensed, and the larger it is, the more likely it is that the procedure for obtaining a license will be successful.

Sale of shares

By selling even a small number of company shares, you can significantly replenish the budget. There is also a chance that large capitalists who are ready to invest in production will be interested in the company. But you need to be ready to share control: the greater the flow of investments from outside, the greater the share of the share will need to be shared.

State sponsorship

A separate type of external financing. Unlike a bank loan, government sponsorship involves a free and irrevocable loan of money. Nevertheless, it is not so easy to get it, because you need to meet one important criterion - it is in the sphere of interests of state bodies.

Public funding is of several types:

• capital investments (if on a permanent basis, then the state receives a controlling stake),
• subsidies (partial sponsorship),
• orders (the state orders and buys products, providing the company with a 100% sale of goods).

External financing is associated with high risks, and it is better to resort to it when you cannot cope with the crisis in the company on your own.

Pros and cons of internal and external funding sources

Source	pros	Minuses
Interior	– ease of raising funds, – no need to ask for permission to spend, – no need to pay interest rates, – maintaining control over activities;	- a limited amount of finance, - Expansion restrictions.
External	– unlimited financial flow, – the possibility of changing equipment, - increase in turnover and, accordingly, profit;	– high risk of bankruptcy, - the need to pay interest rates, - the need to go through bureaucratic delays.

How to choose a funding source

From right choice The source of funding depends on the efficiency and profit of the entire organization as a whole. First of all, a businessman should check his actions with the following list:

1. Give precise answers to the following questions: what is the funding for? how much money will be needed? When will the company be able to return them?
2. Decide on a list of potential sources of support.
3. Starting with the cheapest and ending with the most expensive, make a hierarchy.
4. Calculate the costs and payback of the business idea for which the source is being sought.
5. Choose the best financing option.

It is possible to understand to what extent the choice of the source of funding was justified only by the results of the work, over time: if the productivity and turnover of the organization increased, then everything was done correctly.

Heads and leaders financial institutions of current domestic enterprises show a serious interest in the selection and search for ways and means to finance their business.

Banks and stock markets provide an opportunity to consider various proposals on this issue, explaining their features, correlating them with changes in the money market.

We suggest you consider the standard and most effective methods obtaining capital for business development.

The source of obtaining finance for a businessman can be classified as both external and internal.

The first category includes those assets, monetary units that the organization receives "from the outside", from companies from which the business is not directly curled, for example, a bank, depositors, investments. Which tool to use and direct is determined according to several main points:

• Price
• Passive, exactly its type
• Necessity and time

Sources from outside

This type is divided into equity and debt. In the first case, the firm uses its own funds, in the second - takes a loan. Investors believe that the last financing instrument is more profitable, since the cost of such an instrument already includes a small insurance amount, “at risk”. Business owners also see their benefits in this type of financing, in this situation there is no need to allocate funds for the lender in the organization.

The disadvantage of such an instrument is that it makes the company dependent on situations in the economic market; during a recession, for example, the organization may not be able to repay the loan.

Debt financing, types

• syndicated loan

This form is used if one bank is unable to issue the requested amount of funds. Then the creditors form an association, and certain contractual relations are drawn up both within the syndicate and with the recipient of the loan, which determine the algorithm of actions to repay the loan.

According to statistics, our banking organizations rarely use this method as a source of financing; Western companies use it more often.

alternative this method bonds can be offered.

• Bonds

Issued big companies to raise additional funds. Such papers can be freely available, they can be easily purchased and sold. Sustainable enterprises that are able to make a forecast of the economic situation issue bonds denominated in foreign currency.

• Overdraft

In essence, this is a short-term loan. Overdraft is divided into classic, advance, collection. A significant difference from a loan is that it is repaid in full, at the expense of funds debited from the card. Its plus is that no additional documents are needed for its registration, except for your own bank plastic card with the limit available on it. For this type of lending, it is enough that the movement of funds on the card is constant. Minus - high interest rates and a short term for repayment of the loan.

• Leasing

Another form of lending, when the lessor leases long term any type of property with the ability to either return or redeem it. The advantages of leasing are that the profits of enterprises using leasing are less taxed. Leasing enables business owners to update their technical base. If, in a situation with a loan, you will have an agreement that will prescribe clear terms, amounts of payments, then you can always agree with the lessor on conditions that take into account your capabilities. Interest rates on leasing, as a rule, are several percent higher for a loan, however, despite this, the total benefits from such a type of lending as leasing are greater than from a classic loan.

• Credit based on a rating agency

In this case, the rating agency is the guarantor of the bank and indicates whether the issuer will be able to fulfill all of its obligations. Based on their opinion, lenders, entrepreneurs decide which source of financing is the most profitable, where demand is higher. With a positive assessment rating agency, the competitiveness of the enterprise increases.

• secured loan

A secured loan must be secured by some valuable property that will ensure the organization issuing the loan that you will definitely repay the amount of money issued. The property is sold only if the borrower fails to meet its debt obligations. The disadvantages are that such a loan requires more time to process it and is associated with the risk of losing the pledged property. Plus - the interest rate is much lower compared to a classic loan.

State lending

• Direct capital investments. These funds are directed to enterprises located in the public sector. Accordingly, all profits are state-owned.
• Subsidies. Allocation of small amounts, incomplete or partial funding. It covers both private and state companies. The positive feature of this kind of financing is that it is interest-free, free and gratuitous.
• State order. The state acts as a buyer and forms an order for the production of a particular product to a particular company. An example is RZD. The road is state-owned, and what moves along it is created by private organizations. In this case, the state does not spend on production, and the manufacturer receives a profit from sales.

Equity financing, types

Raising funds through shares. Shares are issued by those organizations that have taken place in the market and have stable cash flows. Shares may be offered primary, secondary, partially or in full.

• Venture Capital

Funds used to invest by an external investor through third parties in new, growing businesses, or those that are on the verge of bankruptcy. This type of investment involves high risk, but also income, whose size is defined as "above average". Through venture capital investments, it is also possible to acquire a share in the company's ownership.

• Syndicated investments

A united group of investors (having a romantic name "business angels"), on their own initiative, invests in projects that they consider the most profitable. This method of receiving funds is also associated with the risk of lack of benefits (a business angel invests his own funds), but is practically devoid of bureaucratic delays.

Internal sources

Such funds are formed as a result of the work of the enterprise. This includes: sales revenue, gross margin. This may include:

• Profits that are undistributed

These are the funds that remain with the organization after it has paid all taxes, carried out all monetary transactions with shares. Such money is sent to the assets of the company and used for its further development and growth. Such funds may be earmarked for the purchase of securities or simply kept in the cash balance feed.

• Automatic funding

Funds received as a result of an increase in the size of liabilities (increase in debt on a loan), when accrued (but retained) wages employees. Such funds are automatically distributed to the needs of the organization. This type is associated with huge risks in the form of an increase in the financial obligations of the company.

• Factoring

It includes three parties: a factor (buyer of claims), a debtor (buyer of goods) and a creditor (supplier). In essence, this is speculation in short-term receivables, usually at a discount of 10 to 60 percent. A type of short-term loan secured by company assets.

• Capital optimization

It implies the creation of certain projects aimed at increasing or decreasing profitability. In this case, as a rule, comprehensive measures are taken that allow free funds to appear that can be reinvested in other areas of the organization's work, aimed at expanding it or creating new projects.

• Discarding a non-core asset

Assets that do not bring monetary benefits, on the contrary, divert funds and attention to themselves. In this case, the best way out is the sale of such assets, and the proceeds must be transferred to the direction that the company considers a priority.

• Fund for depreciation

Depreciation is the depreciation of production facilities, more precisely, its monetary value. The amount of money from which the fund is formed, directed to these needs, is included in the cost of production, and accordingly affects the price. The main tools of the enterprise are repaired, replaced or rebuilt from these funds. Required amount deduction is calculated from the original price of the asset under which the depreciation is calculated. If the equipment needs to be repaired or replaced immediately, then the company can take the accelerated depreciation path. In this case, deductions are made in a larger volume than the normative ones. This method is only recommended big business, since when buying new equipment, volumes increase, the amount of goods produced increases and depreciation is calculated for a larger number of products, and, therefore, there is no price increase.

The main sources of business financing Presentation of the questions of the "Economics" section of the Codifier in Social Studies 2011 (preparation for the Unified State Examination) Compiled by: M.P. Oferkina, teacher of history and social studies, Lyceum 18, Novocheboksarsk, Chuvash Republic

Main sources of business financing Plan 1. Sources of business financing: a) internal; b) external. 2. Internal sources of financing: a) the company's profit; b) depreciation. 3. External sources of financing: a) bank loan; b) transformation of an individual enterprise into a partnership; c) the transformation of the partnership into a closed one joint-stock company; d) the use of funds from various funds to support small businesses.

Sources of business financing internal (company profit + depreciation) external (bank loans + funds of various financial institutions[insurance and investment companies, pension funds, etc.] + state and regional small business support funds

External sources of financing bank loan (short-term - for a period not exceeding 1 year; long-term) transformation of an enterprise into a partnership transformation of a partnership into a closed joint-stock company use of funds from various funds to support small business