Bank lending as a source of financing for enterprises. Bank loan as a source of financing working capital of an enterprise

One of the most common forms of credit relations in the economy, the object of which is the transfer of funds, is provided exclusively by specialized credit organizations licensed to carry out such operations from the Central Bank. The borrower can be legal entities, state or local authorities and the population. Credit relations are formalized by a credit agreement or a credit agreement.

A bank loan differs significantly from a commercial loan:

a) the role of creditor is not specialized credit and financial organizations, but any legal entities associated with the production or sale of goods;
b) the average interest rate on a commercial loan is usually lower than the average bank interest rate for a given period of time. The payment for this credit is included in the price of the goods, and is not specifically determined through a fixed percentage of the base amount;
c) the term of a commercial loan is usually much shorter than a bank loan.

Income from a bank loan comes in the form of bank interest, the rate of which is determined by agreement of the parties, taking into account its average level for a given period of time and specific lending conditions.

It is classified according to a number of characteristics.

Method of issuing (providing) a loan: a) cash or non-cash loans (by transferring funds from account to account or by issuing cash from an account); b) refinancing (rediscounting bills, purchasing resources on the interbank market, issuing bonds and other debt obligations by a commercial bank); c) re-registration (debt restructuring); d) bill loans.

Loan currency. Loans are provided in national currency, in the currency of the creditor’s country, and in the currency of a third country.

Number of participants. Bilateral and multilateral (lending by a banking consortium, syndicated loans) transactions are possible.

Purpose of a bank loan. Loans are provided:

a) to increase fixed capital (renewal of production assets, new construction, expansion of production volumes); b) for temporary replenishment of working capital; c) on a consumer basis, including mortgage loans.

Granting technique: a) one-time loans, i.e. issued in one amount; b) limited loans (overdraft; credit lines). A credit line involves the use of borrowed funds within the established limit. Within its framework, enterprises can receive funds for the purposes specified in the agreement and return them during the validity of the credit line agreement. There are the following types of credit lines: seasonal; renewable, i.e. the client, after repaying the loan debt, has the right to receive a loan again within the established limit; a credit line notifying the client about the upper lending limit, exceeding which is unacceptable, or involves paying increased interest for exceeding it; confirmed line - each time the client is required to agree on the conditions for providing a specific amount within the framework of the credit line.

Overdraft is the elimination of a temporary lack of working capital for an enterprise to make current payments by crediting the bank client's current account using the bank's funds in the amount of no more than 10-15% of the monthly turnover on the client's current account. It is provided, as a rule, against the receipt of funds in the client’s current account, which are immediately written off to repay the overdraft, i.e., in fact, without collateral (although it may be provided for under an agreement with the bank).

The object of bank lending is part of the circulating production assets and circulation and production funds, in the form of obligations of enterprises and organizations.

According to the security criterion, loans are divided into secured and unsecured. The only form of ensuring the repayment of unsecured loans is a loan agreement. In domestic practice, it is used only when lending to one’s own employees. Secured loans are the main type of modern bank loan, in which one of the basic principles of lending finds its practical expression. The role of collateral can be any property owned by the borrower, most often real estate or securities. If the borrower violates its obligations, this property is sold to compensate for losses incurred. The size of the loan issued is usually less than the average market value of the proposed collateral and is determined by agreement of the parties.

According to the methods of repayment, loans are divided into: 1) loans repaid in one amount at the end of the term; 2) loans repayable in installments; 3) loans repaid in unequal installments over the loan term (usually with a grace period).

Loans repaid by a lump sum (payment) from the borrower are a traditional form of repayment of short-term loans, very functional from the standpoint of legal registration, since they do not require the use of a mechanism for calculating differentiated interest.

Specific conditions (procedure) for the repayment of loans repaid in installments over the entire term of the loan agreement are determined by the agreement and are used, as a rule, for medium-term loans. For long-term loans for investment purposes, a grace period (up to a year) is often applied, during which the borrower does not pay any interest or part of the debt. During this time, the borrower manages to install the equipment and start production.

By type of interest rate, loans are divided into: loans with a fixed interest rate and loans with a floating interest rate.

Bank loans, depending on the object of lending, can be short-term or long-term, when the elements are:

-for short-term lending- raw materials, main and auxiliary materials, fuel, containers, work in progress, finished products, funds in settlements. Moreover, these elements are reflected in different ways in different industries. These are industry, agriculture, procurement, trade.
-P for long-term lending The objects of various groups of borrowers are the construction of production facilities, reconstruction and renewal of existing facilities, acquisition of machinery and equipment, vehicles, construction of non-production facilities, etc. .

A bank loan when lending can be private or aggregate in relation to the object. Lending separately only stocks (materials, fuel, containers, finished products), costs - this is a private object. An aggregate object, when a loan is issued for many objects that are not isolated from each other, but combined into a common object.

Enterprise financing is the provision of enterprises with the necessary financial resources. Initially, the formation of financial resources occurs at the time of establishment of the enterprise, when the authorized capital is formed.

Its value shows the size of those fixed and circulating funds that are invested in the production process. Financing of fixed assets of an enterprise should solve the problem of ensuring expanded reproduction. Timely financing of an enterprise allows it to solve the problems of running a business and its own development. To attract the implementation of this, the enterprise must have certain sources of funds. In addition, it must determine the optimal source of financing.

Sources of financing for an enterprise are divided into internal and external. Internal sources refer to the enterprise's own funds: profit and depreciation. And external sources are various borrowed and attracted funds: proceeds from the issue and placement of shares, bank loans, sale of shares in the authorized capital, and so on. Each of the internal and external sources has its own characteristics. Thus, using its own resources for development allows the management of the enterprise to maintain independence in production activities, quickly make decisions and not incur costs for the return of funds. But often the company’s own funds cannot cover all the financing needs, and then attracting external sources is the only opportunity to develop the company. In practice, all of the above forms of financing expenses can be used simultaneously.

And now I propose to consider in detail the sources of financing. Based on the place of origin, the financial resources of an enterprise are classified into:

▪ internal financing;

▪ external financing.

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

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

Grouping of financial resources of organizations by sources of their formation is presented in the figure below.

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

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

The following sources of funding are distinguished:

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

▪ Raised funds (foreign investments).

▪ Borrowed funds (loan, leasing, bills).

▪ Mixed (complex, combined) financing.

Internal sources of financing of the enterprise

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

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

The advantages of internal financing enterprises should be classified no additional costs , related to attracting capital from external sources, and maintaining control over the activities of the enterprise by the owner.

Disadvantage this type of enterprise financing is its application in practice is not always possible . The depreciation fund has lost its importance because depreciation rates for most types of equipment used in industrial enterprises are too low and can no longer serve as a full-fledged source of financing, and the permitted accelerated depreciation methods cannot be used for existing equipment.

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

Involved funds

When choosing a foreign investor as a source of financing, an enterprise should take into account the fact that that investors are interested in high profits , the company itself and his share of ownership in it . The higher the share of foreign investment, the less control the owner of the enterprise has.

Remains debt financing , in which there is a choice between leasing and credit. Most often, in practice, the effectiveness of leasing is determined by comparing it with a bank loan, which is not entirely correct, because for each specific transaction one has to take into account its own specific conditions.

Credit - as a source of financing for an enterprise

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

Advantages of the loan:

▪ the credit form of financing is characterized by greater independence in the use of received funds without any special conditions;

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

The disadvantages of the loan include the following:

▪ the loan term in rare cases exceeds 5 years, which is prohibitive for enterprises aimed at long-term profit;

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

▪ in some cases, banks offer to open a current account as one of the conditions for bank lending, which is not always beneficial to the enterprise;

▪ with this form of financing, an enterprise can use a standard depreciation scheme for purchased equipment, which obliges it to pay property taxes throughout the entire period of use.

Leasing - as a source of financing for an enterprise

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

Advantages of leasing:

▪ Leasing involves 100% lending and does not require you to start payments immediately. When using a conventional loan to purchase property, the company must pay about 15% of the cost from its own funds.

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

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

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

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

Leasing payments , paid by the enterprise, are entirely included in production costs. If the property received under leasing is accounted for on the balance sheet of the lessee, then the enterprise can receive benefits associated with the possibility of accelerated depreciation of the leased asset. Depreciation charges for such property can be calculated based on its cost and norms approved in the prescribed manner, increased by a factor not exceeding 3.

Leasing companies unlike banks no deposit required , if the property or equipment is liquid on the secondary market.

Leasing allows an enterprise to minimize taxation on completely legal grounds, as well as to attribute all costs of equipment maintenance to the lessor.

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

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

Grouping of financial resources of organizations by sources of their formation is presented in the figure below.

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

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

The following sources of funding are distinguished:

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

Internal sources of financing of the enterprise

Involved funds

When choosing a foreign investor as a source of financing, an enterprise should take into account the fact that the investor is interested in high profits, the company itself and his share of ownership in it. The higher the share of foreign investment, the less control the owner of the enterprise has.

Remains debt financing, in which there is a choice between and . Most often, in practice, the effectiveness of leasing is determined by comparing it with a bank loan, which is not entirely correct, because for each specific transaction one has to take into account its own specific conditions.

Credit - as a source of financing for an enterprise

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

Advantages of the loan:

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

The disadvantages of the loan include the following:

the loan term in rare cases exceeds 3 years, which is prohibitive for enterprises aimed at long-term profit;
To obtain a loan, an enterprise must provide collateral, often equivalent to the amount of the loan itself;
in some cases, banks offer to open a current account as one of the conditions for bank lending, which is not always beneficial to the enterprise;
With this form of financing, an enterprise can use a standard depreciation scheme for purchased equipment, which obliges it to pay property taxes throughout the entire period of use.

Leasing - as a source of financing for an enterprise

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

Advantages of leasing:

Leasing involves 100% lending and does not require you to start payments immediately. When using a conventional loan to purchase property, the company must pay about 15% of the cost from its own funds.
Leasing allows an enterprise that does not have significant financial resources to begin implementing a large project.

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

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

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

The Russian Federation has retained the right to choose the balance sheet accounting of property received (transferred) under financial lease on the balance sheet of the lessor or lessee. The initial cost of the property that is the subject of leasing is the amount of the lessor's expenses for its acquisition. In addition, since 2002, regardless of the chosen method of accounting for the property that is the subject of the leasing agreement (on the balance sheet of the lessor or the lessee), lease payments reduce the tax base (Article 264 of the Tax Code of the Russian Federation). Article 269 of the Tax Code of the Russian Federation introduces a restriction on the amount of interest on loans that the lessor can attribute to reducing the tax base, but in other cases the lessor can attribute the amount of interest on the loan to reducing the tax base.

Leasing payments, paid by the enterprise, entirely attributed to production. If the property received under leasing is accounted for on the balance sheet of the lessee, then the enterprise can receive benefits associated with the possibility of accelerated depreciation of the leased asset. Depreciation charges for such property can be calculated based on its cost and norms approved in the prescribed manner, increased by a factor not exceeding 3.

Leasing companies unlike banks no deposit required, if the property or equipment is liquid on the secondary market.

Leasing allows an enterprise to minimize taxation on completely legal grounds, as well as to attribute all costs of equipment maintenance to the lessor.

Kostochko Anastasia student of the Faculty of Finance and Economics

Annotation. The article examines the sources of financing the company's activities, identifies the main manifestations of the role of credit, under the influence of specific economic conditions. A comparative analysis of the debt burden between Russia and the USA was carried out. The results of a study of factors influencing the volume of loans issued to the private sector in relation to GDP in Russia for 2005-2015 are reflected. A comparative analysis of the advantages and disadvantages of a loan, as a source of financing the company’s economic activities, with the issue of shares was carried out.

Key words: sources of financing the company's activities; issue of shares, loan; the role of credit; debt load; factors influencing lending volumes.

Keywords: sources of company's funding; issue of shares; the credit; the role of the credit; debt burden; factors affecting the volume of lending.

When asking a question about the role of credit, it is worth initially noting that it has an objective nature, as it is determined by its essence. Moreover, specific economic conditions have a significant impact on the degree and nature of the implementation of this objective role of credit - the results of its use in the reproduction process. This allows us to state the fact that the role of credit, as well as the scope of its application, are not constant or stable. On the contrary, with changes in the economic environment in the country, changes occur in the role of credit and the scope of its application. Since awareness of this aspect will allow us to correctly understand the further thought, correctly defining the role of credit, we need to verify the veracity of the thesis put forward, so we will dwell on it in a little more detail.

For example, in the conditions of the functioning of full-fledged money, the role of credit in the sphere of cash circulation was less significant than in the functioning of banknotes that are not exchangeable for precious metals. This is due to the conditions for the functioning of full-fledged money, under which changes in the mass of money are practically not associated with the use of credit. Thus, the decrease in the mass of full-fledged money in the sphere of circulation is accompanied by its transformation into treasure and occurs practically without the participation of credit. On the contrary, an increase in the mass of money in circulation can occur from a treasure, but also without the participation of credit.

The opposite picture can be observed when inferior banknotes are used in circulation. The increase/decrease in their mass in circulation with the participation of credit occurs in connection with the implementation of credit operations by banks, which have “a special role in the economy, ... as well as in the budget system.”

It is also important to note how the role of credit is influenced by the specific type of economic system. After all, Russia is now gradually, through trial and error, moving from a planned-administrative type of economic system, where the role of credit, in fact, was manifested in the automatic nature of lending. Credit redistribution often played an anti-stimulative role, because it was carried out without taking into account the creditworthiness of business entities and was used to cover the losses of inefficiently operating industries at the expense of well-functioning enterprises. The principle of loan repayment was not always observed. This lending practice, which did not take into account or even contradicted the essential properties of credit, developed under the influence of the planning and administrative type of economic system, making this instrument ineffective. But in recent decades, Russia has been moving away from this type. In connection with this, this issue is incredibly relevant and topical, since the role of credit in a market economy is completely opposite, its correct definition will allow Russia to successfully implement the long-awaited transition to a market type of management, where the role of credit is to develop and increase the efficiency of the production process of economic entities subjects, which leads to economic growth.

A manufacturing company, like any other business entity, has several sources of financing its activities, which are presented in Figure 1.

A loan is borrowed funds that are an external source of financing the activities of an organization.

Systematizing the literature studied, I provide a list of the main manifestations of the role of credit:

The role of credit in promoting the continuity of the reproduction process and accelerating capital turnover. Loans satisfy temporary discrepancies between current cash receipts and expenses of enterprises. As a result, repeated delays in the reproduction process are overcome and uninterrupted and accelerated production is ensured. This role of credit is especially important during seasonal production and sales of certain types of products. Thus, while contributing to the continuity of the reproduction process, credit is at the same time a factor in its acceleration. Of course, a loan cannot directly affect the reduction in the production time of goods, since it has objective limits determined by non-economic factors, in particular production technology. Its impact on accelerating the reproduction process is expressed in reducing the time spent on changing the functional forms of a product, which ultimately increases the rate of turnover of funds.

The role of credit in expanding production. At the same time, a loan can be used as a source of funds to increase fixed assets - buildings, structures, purchase of equipment, etc. In this case, it increases the ability of enterprises to create new fixed assets necessary for the development of production. In addition, the use of a loan as a source of funds for capital investments allows for more consistent monitoring of the effectiveness of such costs by determining the possibility of repaying loans from the profits from the activities carried out and establishing loan repayment periods within the payback period of the activities being financed.

The stimulating role of credit. Credit relationships that involve the return of temporarily borrowed value with an increment in the form of interest encourage the borrower to use the loan more rationally and to conduct housekeeping more rationally when receiving a loan. The repayment of funds inherent in credit relations, combined with the collection of fees for the use of funds, increases the interest in saving on the amount of funds raised and the timing of their use.

Lending as a factor in the development of innovation. The loan not only encourages the expansion of production, but also forces the borrower to innovate in the form of introducing scientific developments and new technologies into production. In general, credit relations accelerate scientific and technological progress.

Having familiarized ourselves with the theoretical side of this issue, let’s turn to the numbers. Let’s compare the share of the volume of loans issued in GDP in Russia with the volume of lending in the United States. When choosing a country for comparison, we are guided not by which country is closer to us in terms of economic development, for example Brazil, but by which country we are experiencing successful, stable economic growth. In addition, America is our main competitor on the world stage; we need to know the strengths and weaknesses of our opponent.

Figure 1. Data on the volume of domestic loans provided to the private sector.

In the graph we see a slight increase in the share of loans issued to the private sector in Russia’s GDP from 31% in 2006 to 56% in 2015, while in America this indicator has been stable for 11 years around the 200% mark, which is almost 4 times higher than in our country.

To understand why we have such a share of the volume of issued loans in the country in relation to GDP, we will use an econometric research tool - multiple regression.

- Deposit interest rate (%) - interest rate on deposits (explanatory variable xl);
- Lending interest rate (%) - interest rate on loans (explanatory variable x2);
- Interest rate spread (lending rate minus deposit rate, %) - the difference between the interest rate on the loan and deposit (explanatory variable x2);
- Domestic credit to private sector (% of GDP) - volumes of domestic loans provided to the private sector in relation to GDP (dependent variable y is a performance indicator).

By constructing a regression equation based on the stated data array, the following equation was obtained:

y = 36.02 + 8.76*x1 - 3.97*x2 + 0*x1

It is worth noting that Rnabl is greater than Rcrit, this Fisher statistic indicates to us that the equation is significant.

The coefficients in front of the explanatory variables tell us how, on average, the value of the resulting characteristic will change if the corresponding factor characteristic increases by one with fixed values of all other factors. In the resulting equation, y = 36.02 + 8.76*x1 - 3.97*x2 + 0*x1, the regression coefficient of 8.76 means that an increase in deposit interest by one point on average leads to an increase in the share of loans by 8.76 %, provided that other factors do not change. Regression coefficient -

3.97 with the second factor means that an increase in the interest rate on a loan by one point leads on average to a decrease in the share of loans by
3.97% provided that other variables remain unchanged. A regression coefficient of 0 for the third factor means that an increase in the difference between the interest rate on a loan and a deposit by one point does not lead to any changes, provided that other variables do not change.

From which we conclude that the interest rate on deposits has the greatest impact on the volume of domestic loans provided to the private sector in relation to GDP.

Next, we will conduct a correlation analysis of the data array in order to find out the degree of connection between the two variables “x” and “y”. The linear correlation coefficient r xy takes values from -1 to +1. If the correlation coefficient is negative, this means that there is an opposite relationship: the higher the value of one variable, the lower the value of the other. The strength of the connection is also characterized by the absolute value of the correlation coefficient. To verbally describe the value of the correlation coefficient, the following gradations are used:

The sign of the correlation coefficient coincides with the sign of the regression coefficient and determines the slope of the regression line, i.e. general direction of dependence (increasing or decreasing). The absolute value of the correlation coefficient is determined by the degree of proximity of the points to the regression line. Having carried out a correlation analysis, the following data were obtained, see Fig. 2.

Figure 2. Data correlation analysis

From which we can draw the following conclusion that the strongest connection is between the variable x1 and y (the interest rate on deposits and the volume of loans to GDP). The connection between x2 (interest rate on loans) and y is weak. And there is practically no difference between x3 (the difference between the interest rate on a loan and a deposit) and y. Which reinforces what was said above.

However, lending is not the only tool for the redistribution of free funds; an alternative option is securities, which also allow you to mobilize free funds and provide the company with the opportunity to ensure the continuity of the reproduction process, accelerate the turnover of capital, and also expand its production by increasing fixed assets. As a result, the question quite logically arises: what instrument is better for a company to use to finance its activities? To answer this question, let’s analyze the advantages and disadvantages of both loans and securities, see Tables 1 and 2.

Table 1. Advantages and disadvantages of credit as a source of financing activities.

Table 2. Advantages and disadvantages of issuing shares as a source of financing activities.

Based on the above, the following conclusions can be drawn:

The role of credit in economic development is:

- ensuring the continuity of capital circulation, which is achieved through the regular sale of finished goods and involves active commercial lending, the availability of bank lending for entrepreneurs, and the availability of sufficiently developed consumer credit. It is also important to timely purchase raw materials, materials, and update fixed capital. This becomes possible by obtaining a commercial or bank loan;
- accelerating the concentration and centralization of capital, which is a necessary condition for economic growth and stable development, and allows expanding the boundaries of individual accumulation. Using a loan can significantly reduce the time to expand the scale of production, update products and increase production and labor efficiency. Large companies have undeniable advantages in lending, in the size, timing of the loan and in the percentage for its use. These advantages play a significant role in competition and lead to the absorption of small businesses by larger ones;
- helps reduce distribution costs. Commercial lending allows you to speed up the process of selling goods and reduce distribution costs. The loan allows you to reduce the unit costs of storing inventory by expanding trade turnover and sales of goods.

Literature

1. Didenko V.Yu. Strategic management based on key indicators of financial performance of organizations. Strategic management of organizations in a changing world is a collection of scientific papers of the All-Russian scientific and practical conference with international participation. Peter the Great St. Petersburg Polytechnic University. Department of Strategic Management. Responsible for the release: A.N. Burmistrov. 2015. pp. 94-95.
2. Morkovkin D.E. Problems and priorities of financing innovative development of the real sector of the economy // Bulletin of the Financial University. - 2015. - No. 6 (90). - P. 39-49.
3. Morozko N.I. Specifics of tax administration of banking activities // Taxes and taxation. 2011. No. 12. p. 24.

Morozko N.I. Specifics of tax administration of banking activities // Taxes and taxation. 2011. No. 12. p. 24. Compiled by the author
Compiled from data from The World Bank, data.worldbank.org/

Bank loan represents, on the one hand, a sum of money provided by the bank for a certain period and on certain conditions, and on the other hand, a certain technology for satisfying the financial needs declared by the borrower. In the second case, a bank loan is an orderly set of interrelated organizational, technical, technological, informational, financial, legal and other procedures that constitute an integral regulation of the interaction of the bank, represented by its employees and departments, with the bank’s client regarding the provision of funds. Carried out in the form of issuing loans, discounting bills and other forms. This form of financing is the most common.

Advantages of the loan:

the credit form of financing is characterized by greater independence in the use of received funds without any special conditions;

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

TO credit deficiencies the following can be attributed:

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

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

in some cases, banks offer to open a current account as one of the conditions for bank lending, which is not always beneficial to the enterprise;

With this form of financing, an enterprise can use a standard depreciation scheme for purchased equipment, which obliges it to pay property taxes throughout the entire period of use.

34. Financial leasing as a source of financing for an enterprise

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

Advantages of leasing:

Leasing involves 100% lending and does not require you to start payments immediately. When using a conventional loan to purchase property, the company must pay about 15% of the cost from its own funds.

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

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

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

Leasing payments, paid by the enterprise, are entirely included in production costs. If the property received under leasing is accounted for on the balance sheet of the lessee, then the enterprise can receive benefits associated with the possibility of accelerated depreciation of the leased asset. Depreciation charges for such property can be calculated based on its cost and norms approved in the prescribed manner, increased by a factor not exceeding 3.

Leasing companies unlike banks no deposit needed, if the property or equipment is liquid on the secondary market.

Leasing allows an enterprise to minimize taxation on completely legal grounds, as well as to attribute all costs of equipment maintenance to the lessor.