Classification of sources of investment financing. Forms and methods of financing

1. Main sources of financing the investment process
2. The essence and significance of the most important investment financing methods
3. Method of self-financing of the investment process
4. Method of credit financing of investments
5. Investment tax credit as a source of financing the investment process
6. Equity financing of investments
7. Government financing of investments
8. Project financing of investments
9. The essence of the leasing method of investment financing
10. Methods of factoring and forfeiting investment financing

Main sources of financing the investment process

The system of financing the investment process consists of an organic unity of sources, methods and forms of financing investment activities. The main sources of investment are:

• net profit;
• depreciation deductions;
• on-farm reserves;
• cash;
• loans and borrowings from foreign investors;
• issue of securities;
• funds from budgets of various levels;
• targeted funding by a higher organization.

In general, all sources are usually divided into: centralized (budgetary) and decentralized (extrabudgetary).

Centralized sources include funds from the federal, subfederal (regional) and local budgets, as well as funds from extra-budgetary funds.

All others (net profit, depreciation, credit resources, funds from the issue of securities, etc.) are decentralized.

Sources of funds used by an enterprise to finance its investment activities are usually divided into own, borrowed and attracted.

Own sources of investment financing include: profit, depreciation charges, on-farm reserves, insurance compensation, etc.

Borrowed sources include: bank loans, funds from bond issues, targeted government loans, tax investment credit, credits and loans from foreign investors.

Raised funds include: income from the placement of ordinary shares, the issue of investment certificates, investor contributions to the authorized capital, funds provided free of charge. At the state level, funds raised include funds from the state insurance system, etc.

Based on the degree of risk generation, sources can be classified into risk-free and risk-generating.

Risk-free sources of financing include those whose use does not lead to an increase in the risks of the enterprise. These are: retained earnings, depreciation charges, consumer cooperation development fund, targeted financing of a higher organization.

Sources that generate risk include those whose involvement leads to an increase in the risks of the enterprise. These are: borrowed sources, funds from the issue of ordinary shares.

It should be noted that sources of investment financing are classified according to other criteria.

External sources of financing.

The need for external financing is most strongly felt at the investment stage of the project. Determining the required volume of attracted external financial resources is most successfully solved during the preparation of a cash flow statement (based on the principle of a current account). The control parameter for the need for investments with various sources of their attraction is the amount of free funds at each step of the billing period; it must be a non-negative value. Otherwise, the enterprise will experience a shortage of funds for the purchase of equipment, materials, payment of wages, and repayment of financial obligations, which means the non-viability of the project, its actual bankruptcy.

The loan repayment scheme has a great influence on the economic efficiency of the investment project. It is important that the enterprise does not have to start its work with loan payments before the start of the operation phase.

For investment projects, there are two main loan repayment schemes:

1. Periodic repayment of the principal amount of the debt in equal installments with a gradual reduction in interest on the loan.

2. Periodic repayment of interest on the loan in equal installments with the return of the principal amount at the end of the loan agreement.

The first scheme requires lower total financial costs, but quite significant amounts of repayment from the moment the investment project begins. It is advisable to use for investment projects with a short investment phase and carried out at an existing enterprise.

The second scheme, although it entails higher overall financial costs, is less burdensome for a new enterprise, since the amount of debt repayment at the initial stages is less than in the first case.

The efficiency of an investment project can increase if debt servicing is organized on a flexible schedule, based on the availability of available funds. This approach is based on the rule of optimal financing: you should take out a loan only when necessary and repay at the first opportunity. In other words, the volume of borrowed credit in each planning interval should be determined by the size of the deficit of free funds. Debt repayment should be organized in this way. So that during the period of its implementation the amount of available funds is minimal. This contributes to the speedy repayment of debt and reduces the amount of interest accrued.

When implementing such a scheme, it is necessary to take into account that, despite the rapid fulfillment of financial obligations, the liquidity indicator of the project sharply decreases. That is, the ability of an enterprise to repay its external obligations at the expense of its own assets and especially their monetary part. This may alienate many shareholders and potential creditors, which may create problems raising funds in subsequent periods.

Advantages and disadvantages of loans relative to other external sources of financing investment projects.

The benefits include:

1. Loans can be obtained in a much shorter time than funds from the issue of shares or the sale of bonds.

3. External control (by the lender) is exercised over the effectiveness of investment activities.

4. Due to the personal system of relations between the borrower and credit institutions, the latter are more willing to meet the company halfway when it faces financial problems. Although the bank will still require collateral for the loan, the company has the opportunity to negotiate some mitigating conditions (extension, grace period without paying interest, etc.).

5. Long-term credit provides the need for investment resources for small companies, while the issue of securities is impossible due to their small size.

Disadvantages of loans as a source of investment financing:

1. Difficulty in attracting and registration.

2. The need to provide appropriate guarantees or pledge of property.

3. Greater risk of credit loans compared to the issue of shares. Like other borrowed sources, loans lead to bankruptcy of the enterprise in case of non-payment.

4. Long-term loans usually have strict restrictions regarding the terms of their repayment, and during periods of shortage of funds, creditors often require the loan to be repaid with shares of the enterprise.

5. Banks prefer to issue long-term loans for relatively short periods of time, no more than two or three years.

The essence and significance of the most important investment financing methods

It is necessary to distinguish between the concepts of “sources” and “methods” of investment financing.

Sources of investment financing are funds that can be used as investment resources.

Investment financing method is a mechanism for attracting investment resources in order to finance the investment process.

The form of investment financing is an external manifestation of the essence of the financing method.

The scientific literature identifies the following main methods of investment financing:

• self-financing;
• issue of shares;
• credit financing;
• leasing;
• mixed financing;
• project financing.

Method of self-financing of the investment process

The self-financing (S) method of the investment process is practiced when implementing small investment projects.

S is based on financing exclusively from its own (internal) sources (net profit, depreciation charges and on-farm reserves).

The amount of net profit in the part allocated to production development as a source of investment financing depends on many factors:

• volume of product sales;
• unit sales prices;
• unit cost of production;
• income tax rates;
• distribution of profits for consumption and development.

Depreciation charges (A) at the enterprise, in turn, depend on the following factors:

• initial or replacement cost of fixed production assets (OPF);
• species structure of OPF (i.e., the larger the proportion of the active part, the greater the value of A);
• age structure of the OPF (i.e., the younger the structure, the greater the value of A);
• depreciation policy, etc.

The value of A depends on the method of accrual of A, which can be accrued using linear and nonlinear methods.

The accounting rules (PBU) establish the following methods of calculating A for fixed assets: 1) linear method (L); 2) the reducing balance method (DB); 3) the method of writing off the cost by the sum of the numbers of years of useful life (SPN); 4) the method of writing off the cost in proportion to the volume of production (VP).

1. With the linear method (L), the annual amount of depreciation (A) is determined based on the original cost of the fixed assets object and the depreciation rate calculated based on the useful life of this object.

2. With the reducing balance method (UB), depreciation charges (A) are calculated based on the residual value of the fixed assets object at the beginning of the reporting year, the depreciation rate calculated taking into account the useful life of this object and the acceleration factor established in accordance with the legislation of the Russian Federation.

3. With the method of writing off the cost in proportion to the sum of the numbers of years of the useful life of the object (SPN), A are calculated based on the initial cost of the fixed assets object and the ratio, the numerator of which is the number of years remaining until the end of the useful life of the object, and the denominators are the sum of the numbers of years useful life of the object. During year A, fixed assets are accrued monthly, regardless of the accrual method used, in the amount of 1/12 of the annual amount.

4. When writing off the cost in proportion to the volume of production (VP), A is accrued based on the natural indicator of the volume of production in the reporting period and the ratio of the initial cost of the fixed assets object and the expected volume of production for the entire useful life of the fixed assets object.

In consumer cooperation organizations, self-financing (S) of real investments, in addition to net profit and depreciation charges (A), can be carried out at the expense of the accrued consumer cooperation development fund, formed in the amount of up to 6% of the cost of goods and products sold. Contributions to the fund are made monthly.

Of all investment financing methods, self-financing is the most reliable.

Method of credit financing of investments

Credit financing (CF) can take the following forms: credit (C); bonded loans (OZ); raised loans from the population (for consumer cooperation organizations).

A loan is a loan in cash or commodity form on the terms of repayment and payment.

Loans used to finance investments are classified according to various criteria:

1) by type of creditor: foreign, state, banking and commercial;

2) by form of provision: commodity, financial;

3) by purpose of provision: investment, mortgage, tax;

4) according to the period of provision: long-term and short-term.

Bank lending for real investments is carried out in various forms:

1) term loan - provision of a loan for a certain period with an agreed repayment date;

2) a current account loan, in which the current account of the enterprise is maintained by the creditor bank with the bank paying for settlement documents and crediting the proceeds;

3) on-call loan - issued on the security of inventory items or securities;

4) acceptance credit - used, as a rule, in foreign trade through the bank’s acceptance of expenses billed to it by the exporter;

5) discount credit - provided by the bank by purchasing (discounting) a company's bill of exchange before maturity.

Loans as a source of financing investment projects have both positive and negative sides.

Positive aspects - a high volume of possible attraction of them; external control over the effectiveness of their use.

Negative - increased risk, the need to pay interest on loans, mandatory guarantees and collateral of property.

Interest for the use of credit resources is accrued from the date of their provision in accordance with the concluded agreement between the enterprise and the bank. Repayment of interest for the use of borrowed funds is carried out:

1) for construction projects and objects being started - after they are put into operation and within the time limits specified in the loan agreement;

2) for facilities constructed at existing enterprises - monthly from the date of receipt of these funds.

In the context of the transition to market relations, mortgage lending as a method of financing investments is becoming increasingly important.

In this case, it is necessary to distinguish between two concepts: pledge and mortgage.

Pledge is a way of securing an obligation arising from a contract or law.

Mortgage is a type of pledge of real estate (mainly land and buildings) for the purpose of obtaining a loan.

The subject of a mortgage can be not only things, but also property rights and claims, excluding property withdrawn from circulation and claims inextricably linked with the personality of the mortgagee (for example, alimony), as well as the property of citizens, which by law cannot be applied to collection.

Mortgage lending has the following features:

1) mortgage loan - a loan secured by strictly defined collateral;

2) the majority of mortgage loans have a strictly targeted purpose - financing the acquisition and construction of housing, as well as the development of land plots;

3) mortgage loans are provided for a long term, usually for 10-30 years.

A mortgage issued when receiving a mortgage loan is a special credit agreement that differs from its other varieties.

Mortgage loans are traded on the secondary market, the task of which is to ensure a constant flow of resources for lending.

Mortgage lending is considered a relatively low-risk banking operation. Most of the risks in mortgage lending are transferred to the shoulders of the borrower and investor.

A bond loan as a form of credit financing of investments is external borrowing based on the issue of bonds. A bond is a security that certifies the right of its owner to compensation within a specified period of time for the face value of this security with payment of a fixed interest or without payment of interest (discount bonds).

Attracting borrowed funds from the population to replenish working capital has become widespread in the practice of consumer cooperation.

Borrowed funds from the population are understood as a sum of money transferred for a certain period under a loan agreement by a shareholder or any individual of a consumer cooperation organization.

Methods of financing investment activities.

Borrowed project financing.

The main forms of debt project financing are:

1. Investment bank loan (investment line of credit).

2. Targeted bond loans.

3. Equipment leasing.

4. Acquisition of assets necessary for the project in installments (commercial project loan).

Investment bank loan.

An investment bank loan, as a form of targeted project financing, is characterized by the following features:

— investment loans are long-term, their term is comparable to the payback period of the financed project;

— to receive an investment loan, you must provide a thoroughly developed business plan for the investment project to the bank. Which must be supported by relevant marketing research, justified by the necessary calculations and estimates based on market estimates, profit and loss and cash flow plans, and investment calculations. The decisive prerequisite for obtaining an investment loan is the lender’s conclusion regarding the project’s business plan and, therefore, his confidence in the borrower’s ability to timely service the loan provided from the project’s income. To obtain an investment loan, it is advisable to first contact banks that specialize in servicing the industry to which the project belongs;

— for the requested loan, it is necessary to provide adequate property security in the form of property collateral, guarantees and sureties of third parties (other credit institutions, government agencies, parent and affiliated companies and others). At the same time, the market value of the property collateral, assessed at the expense of the borrower by licensed appraisers, must exceed the loan amount, since in the event of improper servicing of its debt, the lender will be forced to urgently sell the pledged property at its liquidation or residual value lower than the market value;

— obtaining an investment loan is possible only when the lender is confident that the borrower’s financial condition will allow him to pay interest on the loan on time and repay the principal amount. This requires the borrower to provide the lender with comprehensive standard information about its financial condition (all forms of audited balance sheet), as well as a willingness to provide any additional information and the opportunity to allow representatives of the lender to conduct their own analysis of the borrower's financial condition. The more financially transparent the borrower's transactions and balance sheet are, the more likely he is to receive an investment loan;

— the loan agreement for an investment loan usually provides for a special mechanism for the lender to control the intended use of funds allocated for the investment project. Such a mechanism is usually the opening of a special account at the lender’s bank, where funds allocated for the project are placed, and from which they can be withdrawn only to pay for the capital and current costs provided for in the project’s business plan;

— an investment loan is characterized by the presence of a relatively long grace period (a period when you do not have to pay interest on the loan and repay the principal amount of the debt). This makes servicing the loan easier, but increases its cost.

Investment tax credit as a source of financing the investment process

In accordance with Part 1 of the Tax Code of the Russian Federation, enterprises can use an investment tax credit, which represents a deferred payment of tax, to finance investment activities. This loan is provided on the terms of repayment and payment. The term of its provision is from 1 year to 5 years.

In each reporting period (regardless of the number of investment tax credit agreements), the amounts by which tax payments are reduced cannot exceed 50% of the corresponding tax payments determined according to the general rules without taking into account the presence of investment tax credit agreements. In this case, the credit amount accumulated during the tax period cannot exceed 50% of the amount of tax payable by the organization for this tax period. If the accumulated amount of the loan exceeds the maximum amount by which a tax reduction is allowed for such a reporting period, then the difference between this amount and the maximum permissible amount is transferred to the next reporting period, unless otherwise provided by the investment tax credit agreement concluded on the basis specified in subparagraph . 6 clause 1 art. 67 Tax Code.

An investment tax credit (ITC) can be provided for the profit tax (income) of a given organization, as well as for regional and local taxes.

So, in accordance with Art. 67 of the Tax Code of the Russian Federation INC is provided for the following purposes:

1) carrying out research and development work. In this case, the INC is provided in the amount of 30% of the cost of equipment purchased by the organization and used for these purposes;

2) implementation by the organization of implementation or innovation activities, including the creation of new or improvement of used technologies, the creation of new types of materials;

3) fulfillment by the organization of a particularly important order for the socio-economic development of the region.

The size of the INC provided to the organization on the grounds listed in clauses 2 and 3 is determined by agreement between the taxpayer organization and the authorized body.

INC is allocated based on the organization’s application and documentation confirming the need for a loan.

A taxpayer organization can enter into several INC agreements for various reasons.

The organization that received the INC reduces the tax payment during the term of the INC agreement for each payment for each reporting period until the loan amount specified in the agreement is reached. Moreover, in each reporting period, the amount of reduction in payments should not exceed 50% of tax payments calculated without taking into account the validity of INC agreements.

For regional and local taxes, constituent entities of the Russian Federation and local governments may establish other conditions for the provision of INC, including the terms for the provision of loans and interest rates on them.

Equity financing of investments

As the name suggests, only joint stock companies can use this method of financing. Equity financing of investments (AFI) is usually used for sectoral or regional diversification of investment activities.

Attraction of investment resources within the framework of this method is carried out through an additional issue of ordinary shares.

AFI is an alternative to debt financing. However, it has disadvantages: firstly, the joint-stock company receives investment resources only upon completion of the issue of shares;

secondly, an ordinary share is not a debt, but an equity security. An additional issue may lead to a dilution of the proportional shares of the previous shareholders in the authorized capital and a decrease in the income of the previous shareholders. Therefore, the charter of a joint stock company may provide for the preemptive right to purchase “new” shares by “old” shareholders.

At the same time, API as a method of financing investments has a number of advantages:

1) with large volumes of issue, low price of funds raised;

2) payment for the use of attracted resources is not unconditional, i.e. funds are paid depending on the financial result of the joint-stock company;

3) the use of attracted investment resources is not limited in time.

The issue of preferred shares as a form of API is associated with the payment of a fixed percentage to shareholders, which does not depend on the results of the economic activities of the joint-stock company. As a rule, the par value of issued preference shares must be no more than 25% of the company's authorized capital. Compared to the issue of ordinary shares, this source of investment financing is more expensive, since it provides for the mandatory payment of dividends on preferred shares.

Venture funding

These are long-term investments (for up to 5-7 years) of private capital in the equity capital of small but promising companies or venture enterprises. Money is invested in the development and expansion of such companies in order to profit from the increase in the value of these investments.

Important! Such investments are always associated with high risk, since they initially contain a high probability (more than 50%) of loss of invested funds.

Sufficient profit from them is possible, but only with high returns and a successful investment.

Government financing of investments

Public financing of investments (GFI) in

Russia can be carried out in such forms as:

1) financial support for highly effective investment projects;

2) financing within the framework of targeted programs;

3) financing of projects within the framework of government external borrowings.

Financial support for highly effective investment projects is provided from the federal budget.

A fundamental feature of the state’s investment policy in recent times is the transition from the distribution of budget funds for capital construction between industries and regions to selective financing of specific investment projects on a competitive basis.

Basic requirements for investment projects:

1) investment projects focused on the development of “growth points” of the economy, for which the investor invests at least 20% of his own funds, have the right to competitively receive state support;

2) the payback period should not exceed 2 years.

The amount of state support in the form of state guarantees is established depending on the category of the project and cannot exceed 60% of borrowed funds. The mechanism for providing a state guarantee is as follows:

1) investors who win the tender send an application for a loan agreement to banks;

2) authorized banks send applications to the Ministry of Finance of the Russian Federation to provide them with state guarantees.

Targeted programs can be implemented through:

1) funds from the federal and regional budgets;

2) extra-budgetary funds: contributions from participants in program implementation; targeted deductions from profits; funds of public organizations; other income;

3) special funds;

4) funds from foreign investors;

5) loans.

Financing of projects within the framework of government external borrowings is carried out from foreign sources, the value of which determines the size of the public debt.

Mixed financing involves the simultaneous use of several methods of financing investments. At the same time, control of the share of own sources of investment financing is carried out using the self-financing coefficient: Qs = Vs/Vo, where Vs is the enterprise’s own funds; Vo is the total investment amount. Optimal parameters Qs = 0.51 - 1.

Target bond loans.

Targeted bond loans represent the issue by the enterprise initiator of the investment project of special long-term bonds, the proceeds from the placement of which on the market, as the enterprise promises, will be used exclusively to finance the announced investment project. The idea of ​​targeted bond loans is that instead of applying for an investment loan to one lender (bank), you can try to get the same loan from a large number of lenders, which will be those who purchase the bonds in question. In this case, the borrowing company receives the following benefits:

— for such a loan, each creditor (bond holder) separately does not need to provide special property security;

— there is no need to develop an expensive version of a business plan for an investment project, which should be submitted to a credit institution. The prospectus for the issue of target bonds usually contains only a fairly general description of the project, which is a feasibility study of the project, or its description in the form of an explanatory note;

— each potential buyer of the issued bonds does not need to separately show internal financial information beyond what will be contained in the bond prospectus, and each of them does not need to report on the progress of the project;

— the enterprise has the opportunity to repurchase its own previously placed bonds on the secondary market and save funds used to pay coupon income;

— the ability to access directly (without an intermediary) the investor’s financial resources. Moreover, since the amount of money owed. certified by one bond, which is usually insignificant, the issuer gains access to the resources of small investors;

— due to the fragmentation of a large number of bondholders, there is little likelihood of interference by the lender in the internal affairs of the borrower.

Disadvantages of targeted bond loans:

— the cost of the borrowing procedure, which limits the range of investment projects that make sense to finance through targeted bond loans;

— the advantages of bond loans appear only in the case of large volumes of borrowing, which only large issuers can afford. When issuing small volumes, the cost of servicing a unit of borrowed funds increases significantly;

— only large companies with a positive credit and professional image can afford to issue bonds.

Project financing of investments

The main feature of project finance (PF), in contrast to equity and government financing, is risk accounting and management. PF is also called financing with a definition of recourse (regression is a requirement to reimburse the amount lent).

PF can be characterized as the financing of investment projects, in which the project itself is a way of tracking debt obligations.

There are three forms of PF:

1) financing with full recourse to the borrower, the essence of which is the requirement of certain guarantees or a certain form of limitation of liability of the project creditors. It is used for low-profit and non-commercial projects;

2) non-recourse financing, in which the lender does not have any guarantees from the borrower and assumes all the risks of the investment project. Such financing is used for highly profitable projects;

3) financing with limited recourse - provides for the distribution of project risks between its participants, so that each of them takes on the risks that depend on it.

The positive aspects of PF are:

• a more reliable assessment of the borrower’s solvency;
• the ability to assess the effectiveness and risk of an investment project.
• predictability of the results of the investment project.

For objective and subjective reasons, project financing in the Russian Federation is at the initial stage of its development.

Indirect sources of investment

There are three main ones:

1. Leasing is the receipt of property (raw materials, equipment) on credit for a certain monthly fee. After full payment, the lessee has the right to take ownership of the leased asset and use it further to generate income.
2. Franchising (franchise, commercial concession) - one party (franchisor) transfers to another (franchisee) the right to a specific type of business. The franchisee gains the right to act unlimitedly on his own behalf, to use the business model already in use, as well as a sign, a well-known brand, operating technology and everything else that previously belonged to the franchisor.
3. Factoring is mostly the purchase by a specialized company of short-term receivables (A/R), which are usually no more than 180 days. Having become a creditor, the company carries out profit-making activities for its own benefit.

The essence of the leasing method of investment financing

The emergence of leasing was due to the need for investment in scientific and technological progress and the impossibility of fully satisfying it through traditional methods of financing - the use of own, borrowed and other funds.

Leasing usually refers to the long-term lease of machinery and equipment for a period of 3 to 20 years, purchased by the lessor for the lessee for the purpose of their production use while retaining ownership of them by the lessor for the entire term of the contract.

There are three types of rental transactions:

1) short-term rental for a period of up to 1 year - renting;

2) medium-term lease for a period of 1 to 3 years - hiring;

3) long-term lease from 3 to 20 or more years - leasing.

Leasing can be considered as a method of financing fixed assets, carried out by special (leasing) companies, which, by purchasing machinery and equipment for the investor, provide credit to the tenant.

Within the framework of long-term leases, there are two main forms of leasing operations - financial and operational leasing.

Financial leasing is an agreement that provides for payment during the period of its validity of amounts covering the full cost of depreciation of equipment or most of it, as well as the profit of the lessor.

Operating leasing is an agreement whose duration is shorter than the depreciation period. After the expiration of the agreement, the subject of the agreement can be returned to the owner and rented out again.

The subjects of leasing can be the lessor and the seller (supplier).

The subject of leasing can be any non-consumable things, including enterprises, equipment and other property used for business activities.

Leasing is based on credit relationships. However, as an independent method of financing real investments, unlike a bank loan, it acts as a loan in commodity form.

The source of financing for investments using the leasing method can be:

• Bank loan;
• the lessor's own funds;
• the lessee's own funds;
• bank loan and the lessor's own funds.

When carrying out leasing operations, a difficult issue is determining the amount of leasing (rent) payments.

The lease payment includes the following main elements:

• depreciation;
• payment for attracted resources - leasing interest;
• leasing margin, including the lessor's income in the amount of 1-3% - risk premium.

There are two methodological approaches to determining payments for leasing transactions: the so-called Western and domestic.

Within the Western approach, the amount of leasing payments can be constant or change over time.

To calculate constant leasing payments (LP), the following formulas are used:

LP = SPL x a,

where SPL is the cost of the leased asset (initial cost), and is the installment coefficient for permanent annuities, determined by the formula:

a = i/1 - (1 + i) n,

where i is the interest rate; n is the number of payments under the leasing agreement.

Lease payments, changing from period to period at a constant rate, are calculated as follows:

LPt = LP1 x (1 - T)n -1,

where LPt is the lease payment starting from the second and ending with n-1 (n is the number of payments); T is a constant growth rate.

The size of the first payment is determined by the formula:

LP1 = SPL x b,

where SPL is the cost of the leased item; b - installment coefficient applied at a constant rate of change in payments, calculated by the formula: b = 1 - T / 1 - [1 + T/(1 + i)]n, where n is the total number of payments under the leasing agreement.

Within the framework of Russian methodological recommendations, the total amount of leasing payments is calculated using the formula:

LP = + PC + DU + VL + VAT,

where AO is depreciation; PC - fee for credit resources; DU - the amount of additional services reimbursed to the lessor; VL - commission to the lessor.

In addition, when calculating lease payments, the following formulas are used:

1) AO = BS x Na/100, where BS is the book value of the leased property; Na is the depreciation rate;

2) PC = KR x STk/100, where KR - credit resources; STk - loan rate in percent per annum;

3) KRr = Q x (OSn + OSk)/2, where KRr are credit resources, payment for which is made in the accounting year; Q is the coefficient (share) of borrowed funds in the total cost of the acquired property; OSn and OSk - the residual value of the property at the beginning and end of the period;

4) DU = (P1 + P2 + … + Pn)/T, where T is the term of the leasing agreement;

P1 ... Pn - the lessor's expenses for each service under the leasing agreement;

5) Vl = (OSn + OSk)/2 x Stv/100, where Stv is the commission rate for the lessor.

There is a lot in common between leasing and renting, but there are also certain differences:

• unlike rent, the subject of the lease cannot be land plots and other natural objects;
• when leasing, there are additional responsibilities associated with the acquisition, insurance, maintenance, and repair of the acquired property;
• when leasing, it is possible to choose a supplier and equipment;
• the leased asset may, at its residual value, become the property of the lessee at the end of the contract;
• VAT is not charged on the rental payment.

In addition, the rental payment structure is different:

Ap = AO + Nn + P,

where Ap is the rent; Нн - property tax; P - profit, determined as a percentage of the cost of the leased property.

Investments

9.1. Economic essence and significance of investments

Investments

- a relatively new term for our economy. When there was a planned economy, the concept of “capital investments” was used.

In the scientific literature, these two concepts have been interpreted differently in recent years. Traditionally, investments are generally understood as the implementation of certain economic projects in the present with the expectation of receiving income in the future. This approach to understanding investment is predominant in both domestic and foreign economic literature.

The Law of the Russian Federation of February 25, 1999 No. 39-FZ “On investment activities in the Russian Federation, carried out in the form of capital investments” (as amended by the Federal Law of January 2, 2000 No. 22-FZ) gives the following definition of investment: “... investments - cash, securities, other property, including property rights, other rights with a monetary value, invested in objects of entrepreneurial activity and (or) other activities in order to make a profit and (or) achieve another useful effect.”

Investment is a broader concept than capital investment.

Investments are usually divided into portfolio and real. Portfolio (financial) investments - investments in shares, bonds, other securities, assets of other enterprises. Real investments are investments in the creation of new, reconstruction and technical re-equipment of existing enterprises. In this case, the investor enterprise, by investing, increases its production capital - fixed production assets and the working capital necessary for their functioning.

When making portfolio investments, the investor increases his financial capital by receiving dividends - income on securities or other income.

In the Law of the Russian Federation “On investment activities in the Russian Federation, carried out in the form of capital investments,” the concept of “capital investments” is interpreted as follows: “... capital investments are investments in fixed capital (fixed assets), including costs for new construction, expansion, reconstruction and technical re-equipment of existing enterprises, acquisition of machinery, equipment, tools, inventory, design and survey work and other costs.” Based on this definition, investments made in working capital cannot be considered capital investments.

Thus, the concept of “real investment” is broader than “capital investment”. According to the above-mentioned law, real investments are funds invested in both fixed and working capital, and in intangible assets. Then the components of the investment can be represented by the following diagram (Fig. 9.1).

Rice.
9.1. Main components of investments by objects of their investments

If we think more specifically from a production standpoint, then capital investments are the costs of: construction and installation work during the construction of buildings and structures; acquisition, installation and commissioning of machinery and equipment; design and survey work; maintenance of the directorate of the enterprise under construction; training and retraining of personnel; costs of land acquisition and resettlement in connection with construction, etc.

In statistical accounting and economic analysis, real investments are also called capital-forming. Capital-forming investments include the following elements:

• investments in fixed assets;
• capital repair costs;
• investments in the acquisition of land plots and environmental management facilities;
• investments in intangible assets (patents, licenses, software products, research and development, etc.);
• investments in replenishing inventories of working capital.

A special place in the structure of capital-forming investments is occupied by investments in fixed capital, the volume of which includes the costs of new construction, reconstruction, expansion and technical re-equipment of existing industrial, agricultural, transport, trade and other enterprises, costs of housing and cultural construction.

Investments as an economic category are manifested through their functions.

Investments perform the following main functions:

• the process of simple and expanded reproduction of fixed assets in both the production and non-production spheres;
• the process of providing and replenishing working capital;
• the flow of capital from one area to another, more attractive one, in the form of real and portfolio investments;
• redistribution of capital between owners by purchasing shares and investing in the assets of other enterprises;
• basis for economic development at the macro and micro levels.

There are gross and net investments. Gross investment consists of the following parts:

Net Investment

is gross investment minus depreciation. If gross investment is equal to depreciation, this means that only simple reproduction takes place. If gross investments exceed the amount of depreciation deductions, then this indicates the presence of both simple and expanded reproduction of fixed assets.

The essence of investment as an economic category predetermines its role and significance at the macro and micro levels.

At the macro level

investments, and especially capital investments, are the basis for the development of the national economy and increasing the efficiency of social production through:

• systematic renewal of fixed production assets of enterprises and non-production spheres;
• accelerating scientific and technological progress, improving the quality and ensuring the competitiveness of domestic products;
• balanced development of all sectors of the national economy;
• creating the necessary raw material base;
• increasing the economic potential of the country and ensuring the defense capability of the state;
• reducing production and distribution costs;
• increasing and improving the export structure;
• solving social problems, including the problem of unemployment;
• ensuring positive structural changes in the economy;
• redistribution of property between business entities, etc.

Thus, investments ultimately determine economic growth. By directing capital investments to increase the fixed capital of society (purchase of machinery, equipment, modernization and construction of buildings, engineering structures), we thereby increase the national wealth and production potential of the country.

The state of the country's economy depends on the efficiency of functioning of all economic entities, i.e. commercial organizations.

Investments, and primarily capital investments, are the basis for ensuring this efficiency in the enterprise.

Investments at the micro level are necessary to achieve the following goals:

• increasing and expanding the scope of activity;
• preventing excessive moral and physical wear and tear of fixed production assets;
• reducing the cost of production and sales of products;
• increasing the technical level of production based on the introduction of new equipment and technologies;
• improving the quality and ensuring the competitiveness of products;
• improving safety precautions and implementing environmental protection measures;
• ensuring the competitiveness of the enterprise;
• purchasing securities and investing in the assets of other enterprises;
• acquisition of a controlling stake;
• to increase business value, etc.

Ultimately, they are necessary to ensure the normal functioning of enterprises in the future, stable financial condition and maximum profit. All this determines the role and significance of investments at the micro level.

Thus, investments are the most important economic category; they play an extremely important role both at the macro and micro levels, and primarily for simple and expanded reproduction, structural transformations, obtaining maximum profits and, on this basis, solving many social problems.