Business financing judgments. Internal and external sources of business financing

When choosing sources of financing for business ideas, most entrepreneurs do not take into account that investments are needed not only at the stage of opening, but also throughout the life of the established enterprise. If you want the project to be successful and long-term - learn how to raise funds!

The concept of "business financing" and classification

This term means supply (providing) entrepreneurial activity financial resources. Depending on the place of origin of material resources, internal and external financing are distinguished.

On the initial stage formation production process managers use external resources, the origin of which is provided by the following sources:

• state ;
• banking organizations;
• shareholders;
• non-profit companies;
• partner firms;
• individuals.

When production begins to generate income, it becomes possible to attract internal resources, including:

• net profit;
• revenue of the future periods;
• (deductions for equipment);
• target reserves allocated to cover future costs.

Ideally efficient and profitable business- self-sustaining and does not require external costs. However, at first and during the expansion of the scope of activities, it is difficult to do without appearance funding - further about each of them in detail.

The main sources of business financing in comparison

Common among subjects economic activity practice - attraction of borrowed money. To maintain the right to full control own business, most entrepreneurs take loans, credits, loans.

Bank lending

Loans from banks occupy a leading position among the ways to finance small businesses, covering an extended range of cost assignments: industrial, consumer, agricultural, mortgage loans.

pros:

• prompt decision on extradition;
• independent distribution of funds without control and instructions from the investor.

Minuses:

• short term of use (standard - 36 months);
• the need to provide collateral; mandatory payment of interest and insurance premiums.

Leasing programs

Leasing is a complex form of financial lending based on the provision of fixed assets for rent with subsequent redemption.

The subject of leasing can be enterprises, land, vehicles, equipment, property (movable and immovable).

pros:

• financing is calculated in 100% ratio with the cost of equipment - for comparison, banks require 10-15% of the price;
• there is no requirement to provide a pledge - such is the leased (purchased) equipment (site, transport);
• debt in the balance sheet of the organization does not increase;
• more loyal conditions in comparison with a bank loan;
• all payments by the lessee are included in the costs of the enterprise.

Minuses:

• when applying for a lease, you may need an initial fee- up to 30% of the value of the property;
• for entrepreneurs working under the simplified taxation system, not all leasing lending schemes are suitable - you should carefully choose a company for cooperation;
• VAT is charged on the lease amount.

trade loan

Form of mutual settlements between firms. You can order the necessary goods (equipment) with a deferred payment. This method is often used by entrepreneurs whose activity is the sale of products from another manufacturer: they take a wholesale batch of goods for purchase, and the calculation is made after it is sold in a retail network.

A method of mutually beneficial cooperation between firms of different directions is also possible - the ordered goods (service) are paid in kind - by what another company produces.

State subsidies, tax incentives

Beginning entrepreneurs receive government assistance in starting a business. One of the means of such assistance is grants. These are one-time payments from the state, local authorities or international organizations to cover part of the costs, capital costs or contributions.

In addition, the taxation system provides special conditions for individual entrepreneurs(IP), regulated federal law No. 477-F3.

The following individual entrepreneurs can obtain the right to tax holidays (zeroing the tax rate) in 2016:

• registered for the first time;
• who have chosen one of the taxation schemes - simplified (STS) or patent (PSN);
• leading activities in the social, industrial or scientific sectors.

Holidays are not established throughout Russia, in each region they are established by the local authorities at their discretion. The benefit is also valid in 2020. Please note that it is calculated for two tax periods (years) for each specific individual entrepreneur.

Nevertheless, no matter how good and promising the idea may look, minimize expenses and rely on your own resources, remembering the notorious saying: “You take someone else's, but you give yours!”

Grants and other sources of project funding

Undoubtedly, the most attractive form of financing for small businesses is a gratuitous targeted subsidy for research, training, treatment and implementation. social projects. However, to be eligible for a government or commercial grant, your idea must meet the following criteria:

1. presenting an evidence-based justification for the importance of the project;
2. quick payback - grants are allocated for a short period (from several months to a year);
3. a clearly developed plan for the implementation of a business idea with an indication of the timing of achieving the goals;
4. willingness to take on a certain part of the costs;
5. a report for every penny spent from the allocated funds.

Although government grants are more designed to support scientists and young professionals, Russia annually allocates funds from the budget to subsidize small forms of ownership.

In parallel, at the state and regional levels are being developed - information on ongoing projects presented in the territorial employment centers and on the official website of the Ministry of Finance.

Foreign investors are also looking for promising representatives of small businesses and are ready to invest in the development interesting projects impressive amounts. However, keep in mind that such “donors” often demand a share of ownership or a large percentage of the profits in return, and also set the condition for officially securing authorship of the idea.

If you cannot do without attracting additional investments, once again make sure that the decision, calculate all possible risks and set yourself a time frame for repaying the loan, which you will definitely meet!

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 is 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 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 (purchases of raw materials, payment work force, 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 enterprise or its participants have unused assets, such as land or a warehouse, then they can be sold, and the money raised 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 the subsequent partial or even complete loss of basic control over the activities of the enterprise.

External sources

External funding sources are the application financial resources 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

Credits

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,
• the property.

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 lack 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 suitable if the enterprises cooperating with each other agree to receive payment in kind, goods or services, i.e. 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 its funds in the authorized capital, will expand or stabilize the financial capabilities of the company.

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 firm 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

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.

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 the use of equity (net profit, deductions), and the external is 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 purpose of such investments is not to obtain full control, and in fixing income for a period of 1-3 years.

Direct investment is an investment in equity in order to generate income and get the right 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 large production, much more efficient to take .

How to get funding?

How to get funding - important question, which 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 don't hesitate, take consumer credit in the 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. On how to develop this document, Lenders must be more than confident that the business in which they invest their own money will be profitable for them.

How to get a grand?

Grand is the best alternative to a bank loan 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 budget funds are allocated for the development of small and medium-sized businesses. 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 for 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 field. 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 areas where serious investments are not needed is an online business, 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.

Heads and leaders financial structures 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 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 advantage is that for its registration you do not need any additional documents, except for your own banking plastic card with its limit. 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 for a long period of any type of property with the possibility of either returning or redeeming 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 and 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 higher by several percent on 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

AT 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 of the 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 public 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

attraction Money 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 profit. 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 company's assets and used for its further development and growth. Such funds can be identified for the acquisition valuable papers or simply stored 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 to sell such assets, and the proceeds must be transferred to the direction that the company considers a priority.

• Fund for depreciation

Depreciation - wear production capacity, more precisely, its monetary expression. 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. The required amount of deduction is calculated from the initial price of the asset under which 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 on large quantity products, and, consequently, price increases do not occur.

Financing- a way to provide entrepreneurship with cash. Internal sources of financing - sources of cash receipts, which are formed at the expense of the results of entrepreneurial activity. It can be investments of the founders of the company in authorized capital; cash received after the sale of the company's shares, the sale of the company's property, the receipt of rent for the lease of property, income from the sale of products.

1) Profit (gross)- the difference between its income and costs or production costs, i.e., the total profit received before all deductions and deductions are made. Net income (residual profit) is the difference between the amount of sales proceeds and all costs of the enterprise.

2) Depreciation- calculated in monetary terms depreciation of fixed assets in the process of their use, production use. The instrument for compensating for depreciation of fixed assets is depreciation deductions in the form of money allocated for repairs or construction, or the manufacture of new fixed assets. The amount of depreciation is included in the production costs (cost) of products and thus goes into the price.

External funding sources

1) debt financing - borrowed capital (short-term loans and loans; long-term loans).

- Loan capital is an independent part of economic capital, which functions in the form of cash in the field of entrepreneurial activity.

- Mortgage loan - mortgage loan. This loan is the most common form of secured loan. Its essence is that the firm, upon receipt of debt funds, guarantees the creditor to repay the debt, taking into account interest.

- Trade credit is a commercial loan, which means that an entrepreneur buys a product by postponing its payment.

– Shares are a common form of raising money. By issuing and selling shares, an entrepreneurial firm receives a debt loan from the buyer, as a result of which the shareholder acquires the right to the property of the company, as well as to receive dividends. Dividends in this case are interest on a loan, which is presented in the form of money paid for shares.

2) Transformation of an individual enterprise into a partnership.

3) Transformation of the partnership into a closed joint stock company.

4) Use of funds from various funds to support small businesses.

5) Gratuitous financing is the representation of funds in the form of gratuitous charitable donations, assistance, subsidies.

Selling shares is also a way to raise finance from outside, and it is a very important source of funding since a firm can have hundreds or thousands of shareholders.

State budget financing:

– The state allocates funds to public sector enterprises in the form of direct capital investments. Public sector enterprises are owned by the state. This means that the state also owns the profit from their activities.

- The state can also provide firms with its funds in the form of subsidies. This is a partial financing of the activities of firms. Subsidies can be issued to both public and private firms. The main difference between state financing and a bank loan is that the company receives funds from the state free of charge and irrevocably.

- State order: the state orders the company to manufacture a particular product and declares itself to be its buyer. The state does not finance costs here, but provides the company with income from the sale of goods in advance.