Short description

An invention such as credit is the most incredible creation of man, naturally, after money. If there were no credit, we would spend a huge amount of time satisfying various kinds of human needs. The borrowing company has the opportunity to increase its assets (resources) through their additional attraction. Using a loan, absolutely anyone has the opportunity to expand their business or business, or to speed up the opportunity to quickly get into use things, objects, and valuables that they could only receive in the future if there were no loan.

INTRODUCTION
1 BANK LOAN, ITS NEED AND ROLE IN THE ACTIVITY OF THE ENTERPRISE
1.1 The essence of a bank loan, the need to attract it

2. ANALYSIS OF ATTRACTION AND USE OF BANK CREDIT BY THE ENTERPRISE.
2.1 Analysis of the effectiveness of using a bank loan.
2.2 Problems of bank lending to business entities and ways to solve them
2.3 Ways to increase the efficiency of use of a bank loan by an enterprise
Conclusion

Attached files: 1 file

INTRODUCTION

1 BANK LOAN, ITS NEED AND ROLE IN THE ACTIVITY OF THE ENTERPRISE

1.1 The essence of a bank loan, the need to attract it

1.2 Assessing the creditworthiness of an enterprise

2. ANALYSIS OF ATTRACTION AND USE OF BANK CREDIT BY THE ENTERPRISE.

2.1 Analysis of the effectiveness of using a bank loan.

2.2 Problems of bank lending to business entities and ways to solve them

2.3 Ways to increase the efficiency of use of a bank loan by an enterprise

Conclusion

List of used literature

Applications

INTRODUCTION

An invention such as credit is the most incredible creation of man, naturally, after money. If there were no credit, we would spend a huge amount of time satisfying various kinds of human needs. The borrowing company has the opportunity to increase its assets (resources) through their additional attraction. Using a loan, absolutely anyone has the opportunity to expand their business or business, or to speed up the opportunity to quickly get into use things, objects, and valuables that they could only receive in the future if there were no loan.

An enterprise always needs to develop very quickly when it has the opportunity to supply an attractive, competitive product or some kind of profitable service to the market. Without extensive growth, it is almost impossible for an enterprise to take a leading position in the market. Therefore, those companies that, due to their distrust or simply other reasons, do not use borrowed funds to develop their business, may simply lose time, and someone will take their position much faster. And as a result, when time delay is undesirable for enterprises in the current economy, the company loses its position and it becomes much more difficult for it to compete with another company or enterprise that has strengthened and taken advantage of the current situation in the economy and used all the opportunities for its growth.

Today, no matter how sad it may sound, most domestic companies still continue to rely on their own strengths, without borrowing funds, when sometimes this is an excellent opportunity to increase the economic growth rate of the enterprise.

I would like to note that borrowed funds are primarily necessary to finance small or growing enterprises, when the growth rate lags behind the rate of provision of their own resources, for the development of new types of products, improvement of production, purchase of some other type of business, etc. Borrowed funds are raised to finance working capital due to processes such as inflation or due to insufficient working capital.

Borrowed capital is all borrowed sources that together bring profit to the enterprise. One of the sources of formation of borrowed capital is a bank loan, the problems of attracting and using which will be discussed in this work.

Today, the role of credits and loans has increased dramatically. Especially the role of loans is of great importance at the stage of formation of an enterprise, when an enterprise uses borrowed funds, investing them for the future, that is, pours them into long-term investments in order to create new property.

Short-term loans are needed by an enterprise to speed up the turnover of funds and help maintain an optimal level of working capital.

In the current conditions of the global financial crisis, enterprises must carefully select instruments for attracting borrowed capital and their parameters, that is, learn to manage borrowed capital to solve their problems in difficult conditions. The relevance of my course work lies in the fact that it, to some extent, allows us to present a picture in which effective management of borrowed capital in the capital structure of an enterprise can provide additional revenue to its business turnover and increase

profitability of the production process itself, increase the market value of the enterprise.

The purpose of my course work is to study the very concept of a bank loan, and to consider the principle of financing an enterprise through a bank loan. In accordance with the goal, the following objectives of the course work were formulated:

Study the concept and essence of a bank loan, its necessity and role in the activities of the enterprise;

Study the creditworthiness of business entities;

Study the concept of the effect of financial leverage in analyzing the efficiency of using a bank loan;

Assess the creditworthiness of an enterprise based on an analysis of financial ratios;

Study the problems of using and ways to improve the efficiency of bank credit.

1 Bank loan, its necessity and role in the activities of the enterprise

1.1 The essence of a bank loan, the need to attract it

Bank loan is the main form of credit. This means that it is banks that most often provide their loans to entities in need of temporary financial assistance. This is a monetary form of credit that arises when funds are transferred into debt on terms of urgency, repayment, and payment. The circulation of funds allows you to mobilize temporarily released funds and at the same time redistribute them in favor of those who need them. The bank undertakes this issue, since free funds are deposited in bank accounts, and the bank has information about how these resources can be used.

Bank loan 1 represents the movement of loan capital lent by banks for a fee for temporary use. It expresses the economic relations between lenders (banks) and lending entities (borrowers), which can be both legal entities and individuals. Legal entities of other states - non-residents of the Russian Federation, apply the same rules in relation to loans and bear the same duties and responsibilities as legal entities of the Russian Federation, unless otherwise provided by law.

Bank credit can operate within a national framework and in the form of an international loan. It is provided with the conclusion of a loan agreement for each borrower individually, so that

the risk level of the credit transaction was minimal. Loan agreement –

this is a legal document that regulates the relationship between the bank and the borrower 3 when issuing a loan, defining the mutual rights and obligations of the parties.

A bank loan can be direct or indirect. Direct credit relationships (borrower bank) are predominant. Indirect bank lending is used more limitedly, i.e. providing a loan to the borrower through an intermediary, for example, a trading organization, pawn shops, etc.

Within the loan form, there are types of loans that are formed depending on the characteristics of the object, the target direction of the loan, its term, the security of repayment and other characteristics. For example, taking into account the timing of issuance, the following types of loans are distinguished:

Short term,

Medium term,

Long-term;

Taking into account their directions by economic sectors:

Credit investments in industry, agriculture, trade, construction, etc.;

The objects are distinguished:

Loans for costs associated with the creation and increase of current and non-current (long-term) assets;

Consumer needs of the population.

Depending on the form of provision, there are one-time loans and loans issued under a line of credit. From the point of view of granting technology, we can distinguish consortium loans, bills of exchange, pawnshop loans, acceptance loans, cash loans, non-cash loans, in the form of credit cards, etc. According to the methods of loan repayment, there are urgent, deferred, overdue, long-term repaid.

Credit is also the main source of satisfaction

huge demand for financial resources. Even with a high level of profitability and self-financing, economic entities may not have enough of their own funds for current activities and investments. Loans are needed (for example) when:

• Enterprise 5 is “in a breakthrough” because the sale of products has failed for one reason or another.
• let down by suppliers or buyers
• difficulties arose with paying salaries to employees, etc.

Thus, credit stimulates the development of production forces, accelerates the formation of sources of capital for the expansion of production based on the achievements of scientific and technological progress.

The subjects of credit 6 relations in the field of bank credit are enterprises and firms, the population, the state and the banks themselves. As is known, in a credit transaction the subjects of credit relations always act as lenders and borrowers. Lenders are persons (legal and physical) who provide their temporarily available funds at the disposal of the borrower for a certain period. Borrower is a party to a credit relationship that receives funds for use (loan) and is obliged to repay them within a specified period. As for a bank loan, the subjects of credit transactions here necessarily act in two persons, i.e. both as a lender and as a borrower. This is due 7 to the fact that banks work mainly on borrowed funds and, therefore, act as borrowers in relation to the owners of these funds.

Loans, performing the functions of a loan, have various forms and help to use the funds received more flexibly. An enterprise can receive a loan in the most convenient form for itself - directly

a loan, in the form of a bill of exchange, or by issuing bonds.

The need and possibility of a loan is determined by laws

circulation and circulation of capital in the process of reproduction: in some places temporarily free funds are released, acting as a source of credit, in others there is a need for credit, for example, to expand production. Thus, credit contributes to economic growth: the lender receives payment for the loan, and the borrower increases and renews his productive assets.

1.2 Assessing the creditworthiness of an enterprise

Creditworthiness should be understood as the financial and economic condition of the enterprise, which gives confidence in the effective use of borrowed funds, the ability and willingness of the borrower to repay the loan in accordance with the terms of the agreement. In other words, the borrower's creditworthiness is the ability to repay the loan debt. Its score of 8 represents the bank’s assessment of the borrower in terms of the possibility and feasibility of providing him with a loan. It determines the probability of timely return and payment of interest on it.

Unlike solvency, creditworthiness does not record non-payments for the past period or at some date, but predicts the ability to repay debt in the near future. In addition, creditworthiness shows financial strength and allows the rating to be assigned to the appropriate classes.

Factors affecting creditworthiness:

1. Client's capacity. This is the client's eligibility to receive a bank loan.
2. Borrower reputation
3. Asset ownership
4. Client's position in the market.

Assessing creditworthiness involves, first of all, the use of indicators that characterize the borrower’s activities in terms of the ability to repay loan debt.

The most common methods for assessing a borrower’s creditworthiness in world practice include the “5 C Rules” 9, where the client selection criteria are indicated by words beginning with the letter “C”:

A more specific consideration of the indicators of the rules of the five “SI” is presented below:

1. Character of the borrower.	The client’s reputation, the degree of responsibility of the client (legal or private person) for repaying the debt, the attitude of partners towards this client, the borrower’s credit history, communication with the client to confirm his stability, moral qualities, collecting information about clients.
2. Financial capabilities	Analysis of the client's income and expenses, cash flows, the ability to repay the loan, data on current cash receipts, inventory and their sales, borrowing.
3. Capital	Determining the adequacy of equity capital, its relationship with other items of assets and liabilities, determining the degree of investment of equity capital in a credit operation.
4. Providing	The presence of a ratio between the value of the borrower's assets and debt obligations to repay the bank loan, the presence of a specific secondary source of debt repayment (pledge, guarantee, surety, insurance), if the bank client's cash flows are insufficient.
5. General economic conditions	Taking into account the current or forecast situation in the country, region, industry, political factors, business climate, competition from other enterprises, tax status, raw material prices, etc.

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.

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 identified:

• Internal enterprise sources(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.

Federal Agency for Education of the Russian Federation

Novosibirsk State University

Economics and Management

Department of Management

Course work

discipline: Corporate financial policy

on the topic: Bank credit as a source of financing the activities of an enterprise: problems and prospects

Novosibirsk 2010

bank loan expense financing

Introduction

Theoretical part

Practical part

Conclusion

Bibliography

Introduction

This course work consists of two parts. In the first, theoretical one, a bank loan was considered as a source of financing the activities of an enterprise. Types of bank loans, repayment terms, principles, and lending conditions were considered.

In the practical part, 4 stages of financial analysis were consistently completed: analysis of the company’s internal environment; determination of the company’s strategic financial position, choice of financial strategy and policy; determining the optimal structure and price of capital; investment activity management. After carrying out these analyses, results were obtained with which one can judge the current financial situation of the enterprise.

Theoretical part

The essence of a bank loan as a financial instrument in the activities of an enterprise

Bank credit is one of the most common forms of credit relations in the economy, the object of which is the process of transferring funds for a loan on the terms of urgency, repayment, and payment.

A bank loan expresses the economic relationship between lenders (banks) and lending entities (borrowers), which can be legal entities or individuals. Legal entities of other states - non-residents of the Republic of Kazakhstan, apply the same rules in relation to loans and bear the same duties and responsibilities as legal entities of the Republic of Kazakhstan, unless otherwise provided by law.

The bank form of credit is the most common form, since it is banks that most often provide loans to entities in need of temporary financial assistance.

Bank loans are provided exclusively by financial institutions licensed to carry out such operations.

The basic principles of lending, including banking, which must be observed in the process of issuing and repaying loans, are:

) urgency of return;

) security;

) target nature;

) payment.

Urgency of repayment involves the repayment of the issued loan in the established volumes and time frame.

Loan security links its issuance and repayment with material processes that guarantee the return of the funds provided. The security must be liquid and complete. Even when a bank provides a loan on trust (blank loan), it must have unconditional confidence that the loan will be repaid in a timely manner. Unsecured loans can be provided in large amounts only to large enterprises, i.e. to first-class borrowers with qualified management and an excellent development history.

The targeted nature of the loan provides for the issuance and repayment of the loan in accordance with the purposes stated at the conclusion of the loan transaction, for example, a loan to replenish fixed capital.

The repayment of a loan determines the payment for its use, in particular in the form of loan interest.

Lending conditions refer to the requirements that apply to certain (basic) elements of lending: subjects, objects and loan collateral. In other words, the bank cannot lend to any client and that the object of lending can only be that need of the borrower that is associated with his temporary payment difficulties, with the need to develop production and circulation of the product.

The loan terms are as follows:

) coincidence of interests of both parties to the credit transaction;

) availability of both the lending bank and the borrower the ability to fulfill their obligations;

) the possibility of realizing the collateral and the availability of guarantees;

) ensuring the commercial interests of the bank;

) conclusion of a loan agreement.

A bank loan is classified according to a number of criteria:

)By maturity:

Short-term loans are provided to compensate for the temporary shortage of the borrower's own working capital. Up to a year. The interest rate on these loans is inversely proportional to the repayment period of the loan. Short-term loans serve the circulation sector. Short-term loans are most actively used in the stock market, in trade and the service sector, in the interbank lending regime.

Medium-term loans are provided for a period of one to three years for production and commercial purposes. They are most widespread in the agricultural sector, as well as when lending to innovative processes with average volumes of required investments.

Long-term loans are used for investment purposes. They service the movement of fixed assets, characterized by large volumes of transferred credit resources. They are used for lending for reconstruction, technical re-equipment, and new construction at enterprises in all fields of activity. Long-term loans have received particular development in capital construction and the fuel and energy complex. The average repayment period is from 3 to 5 years.

Call loans that must be repaid within a fixed period after receiving formal notice from the lender (the repayment period is not initially specified). Currently, they are practically not used not only in Kazakhstan, but also in most other countries, since they require relatively stable conditions in the loan capital market and in the economy as a whole.

)By payment methods:

Loans that are repaid in a lump sum by the borrower. This traditional form of repayment of short-term loans is optimal because... does not require the use of a differentiated interest mechanism.

Loans repaid in installments over the entire term of the loan agreement. Specific return conditions are determined by the contract. Always used for long-term loans.

) By methods of charging loan interest:

Loans on which interest is paid at the time of its total repayment. A traditional form of payment for short-term loans in a market economy, which has the most functional character in terms of ease of calculation.

Loans on which interest is paid in equal installments by the borrower over the entire term of the loan agreement. A traditional form of payment for medium- and long-term loans, which has a fairly differentiated nature depending on the agreement of the parties (for example, for long-term loans, interest payments can begin both after the end of the first year of using the loan, and after a longer period).

Loans for which interest is retained by the bank at the time the loan is issued to the borrower. For a developed market economy, this form is absolutely uncharacteristic and is used only by usurious capital.

) By methods of providing credit:

Compensatory loans sent to the borrower’s current account to compensate the latter for his own expenses, including those of an advance nature.

Paid loans. In this case, loans go directly to pay for settlement documents presented to the borrower for repayment.

) By lending methods:

One-time loans provided on time and in the amount stipulated in the agreement concluded by the parties.

A line of credit is a legally formalized obligation of a bank to a borrower to provide loans within a certain period of time within an agreed limit.

Credit lines are:

Revolving is a firm commitment of the bank to issue a loan to a client who is experiencing a temporary shortage of working capital. The borrower, having repaid part of the loan, can count on receiving a new loan within the established limit and the term of the agreement.

A seasonal line of credit is provided by the bank if the company periodically has needs for working capital associated with seasonal cyclicality or the need to create inventories in the warehouse.

An overdraft is a short-term loan that is provided by debiting funds from a client's account in excess of the balance in the account. As a result, a debit balance is formed on the client's account. An overdraft is a negative balance in a client's current account. Overdraft may be permitted, i.e. pre-agreed with the bank and unauthorized, when the client issues a check or payment document without the bank’s permission. Overdraft interest accrues daily on the outstanding balance and the customer only pays for the amounts actually used.

) By type of interest rates:

Loans with a fixed interest rate, which is set for the entire loan period and is not subject to revision. In this case, the borrower undertakes to pay interest at a constant agreed rate for using the loan, regardless of changes in the interest rate market. Fixed interest rates are applied for short-term lending.

Loans with floating interest rates. Floating rates are those that constantly change depending on the situation in the credit and financial markets.

Loans with stepped interest rates. These interest rates are revised periodically. Used during periods of severe inflation.

) By number of credits:

Loans provided by one bank

Syndicated loans provided by two or more syndicated lenders to one borrower.

Parallel loans, in this case, each bank negotiates with the client separately, and then, after agreeing with the borrower on the terms of the transaction, a general agreement is concluded.

) Based on availability of collateral:

Contract credit. A current loan is issued using a current account, which is opened to clients with whom the bank has a long-term trusting relationship, to enterprises with an exceptionally high credit reputation.

Pledge agreement. A pledge of property (movable and immovable) means that the pledgee has the right to sell this property if the obligation secured by the pledge is not fulfilled. The collateral must ensure not only the repayment of the loan, but also the payment of the corresponding interest and penalties under the contract provided for in the event of its non-fulfillment.

Guarantee agreement. Under this agreement, the guarantor undertakes to be responsible to the creditor of another person (borrower, debtor) for the latter’s fulfillment of his obligation. The borrower and the guarantor are liable to the creditor as joint and several debtors.

Guarantee. This is a special type of surety agreement to secure obligations between legal entities. The guarantor can be any financially stable legal entity.

Credit risk insurance. The borrowing company enters into an insurance agreement with the insurance company, which stipulates that in case of failure to repay the loan on time, the insurer will pay the bank that issued the loan compensation in the amount of 50 to 90% of the loan amount not repaid by the borrower, including interest on the use of the loan.

) According to the intended purpose of the loan:

Loans of a general nature, used by the borrower at his own discretion to meet any needs for financial resources. In modern conditions, they have limited use in the field of short-term lending; they are practically not used in medium- and long-term lending.

Targeted loans, which require the borrower to use the resources allocated by the bank exclusively to solve problems defined by the terms of the loan agreement (for example, payment for purchased goods, payment of wages to staff, capital development, etc.). Violation of these obligations entails the application of sanctions established by the contract to the borrower in the form of early revocation of the loan or an increase in the interest rate.

The above classification is considered traditional. In the Republic of Kazakhstan there is a slightly different, more condensed classification:

) by terms of provision:

short-term (up to 1 year);

medium-term (from 1 to 3 years);

long-term (over 3 years);

) by lending objects:

lending to replenish working capital;

lending for renewal and acquisition of fixed capital;

) by lending methods:

balance lending;

turnover lending.

The need and possibility of attracting a bank loan is determined by the laws of the circulation and circulation of capital in the process of reproduction: in some places temporarily free funds are released, acting as a source of credit, in others there is a need for a loan, for example, to expand production. Thus, credit contributes to economic growth: the lender receives payment for the loan, and the borrower increases and renews his productive assets.

The need to increase competitiveness increases the requirements for the quality of enterprise management. An increase in the level of management is unthinkable without the use of a formalized, scientifically based approach to making management decisions. Let's consider an example of a scientific approach to making a decision on attracting a bank loan to finance the current expenses of an enterprise.

The methodology for calculating the need to attract a bank loan to finance the current expenses of an enterprise is a logical procedure for assessing the feasibility of using a bank loan as an external financing instrument.

Calculation of the need for a bank loan is based on the following basic conditions. Firstly, the possibility of attracting credit resources is considered as one of the alternatives for eliminating the temporary gap between the inflow and outflow of funds. The decision to attract a loan is made subject to greater economic feasibility of this method of external financing, compared to other available methods of covering the cash gap. Secondly, the enterprise planning system must support the simulation function. To select the optimal source of financing, it is important to be able to make a preliminary assessment of the consequences of making various decisions - in this case, when using certain methods of covering the cash gap.

The process of calculating the need to attract a bank loan to cover the time gap between the inflow and outflow of funds includes two stages: identification of the need for funds and analysis of the use of various alternatives to cover the identified deficit. Each stage is characterized by its task and content. The task of the first stage is to identify in advance the size of the cash deficit, the date of its occurrence, as well as the period of its persistence. The task of the second stage is to determine the most effective way to cover the cash deficit. Let's consider the content of each stage.

The task of the first stage is implemented within the framework of operational management of the enterprise on the basis of a budgeting system - technology for planning, accounting and control of funds and financial results. The budgeting system includes a hierarchy of financial plans that combines main budgets (cash flow budget, income and expense budget, balance sheet budget) and operating budgets, activity budgets not related to core activities.

The hierarchy of budgets determines the direction of information flows: the main budgets are formed using data provided by lower-level budgets: operating budgets, as well as budgets for investment and financial activities. In turn, the data necessary for the formation of operating budgets is formed on the basis of data from internal management accounting registers, which record the parameters of business operations at the enterprise. These registers of internal management accounting are individual for each enterprise; what they have in common is the reflection of changes in the parameters of the state of the enterprise under the influence of ongoing operations. Internal accounting registers, as a rule, include databases that record the state of the enterprise’s resources, orders accepted for execution, specifications for various types of products produced by the enterprise, production programs, etc.

The information necessary to solve the problem of identifying the fact of a cash deficit, its magnitude, and duration is directly reflected in the cash flow statement. A cash flow statement is a financial document that presents in a systematic form at a given time interval the expected and actual values ​​of inflows and outflows of funds of an enterprise. The cash flow statement shows projected cash balances as of a specific date and signals the planned need for additional resources. The data used as input to the cash flow statement is generated by the output of operating budgets. Operating budgets are estimates of planned and actual values ​​of cash inflows and outflows, grouped based on the enterprise performing operations of the same type. The specific breakdown depends on the specifics of the enterprise; as an example, we can offer the following typology: budget of receipts and deductions (receipts from sales by type of product, deductions in the form of direct costs for certain types of raw materials), budget for wage payments, budget for payment of tax deductions , budget for supporting expenses (deductions for fixed costs), budget for financial activities, budget for investment activities. Some of the information presented in operating budgets is of a permanent nature, i.e. does not depend on the business activity of the enterprise (fixed costs, part of wages, part of tax payments). The values ​​of other items directly depend on the operations performed by the enterprise. Limiting the consideration of the financial model of an enterprise to the budget level is inappropriate, since in order to solve the problems of “consider options for mobilizing funds” and “evaluate the effectiveness of the operation”, it is necessary to be able to carry out simulation modeling, which allows you to play out various options for making management decisions regarding the choice of option, the consequences which choice will be optimal. A method for calculating an enterprise’s need for a bank loan, built on the principle of being able to maintain a dialogue “what will happen if?” should take into account the peculiarities of the formation of operating budgets, the content of which depends on the operating parameters of the enterprise recorded in the system of internal management accounting registers.

After identifying the size of the cash deficit, the date of its formation and the period of operation, it is necessary to take measures to eliminate it. First of all, the cause of the deficit is determined; the first option to cover the deficit may be to eliminate its cause. All available alternatives can be divided into three groups. The first group includes various options for modifying the cash flow structure associated with changing schedules of planned payments (considering options for delaying payments, possibilities for reducing the period of planned cash receipts). The second group includes options for making changes to the enterprise’s production program in order to postpone the implementation of the production schedule, which requires an outflow of funds (purchase of raw materials, components). The third group of ways to cover the cash deficit includes instruments for attracting external financing, in particular a bank loan. Each option for covering a cash deficit has individual characteristics associated with the nature of the consequences resulting from the use of this option. For example, the use of a bank loan is characterized by the need to repay the loan amount and interest on it by a certain date; the receipt of funds is expected no earlier than a certain date.

The choice of a specific method to cover the cash deficit is carried out in two stages. At the first stage, methods are selected from the available alternatives, the feasibility of which is confirmed by calculations of a strategic nature. For example, asking counterparties to speed up settlements can reduce the level of trust in the enterprise, so it is not advisable to use them. At the second stage, the consequences of using each option are analyzed. The selection criterion is the financial condition of the enterprise caused by the use of a specific method of covering the deficit. The consequences of any business transaction carried out by an enterprise are reflected in its financial condition, which can be preliminarily assessed using a simulation modeling system. Using the connection “internal accounting registers operating budgets main budgets: cash flow budget and expense and income budget,” we can analyze the consequences of choosing each option to cover the cash deficit, which is reflected in the structure of the cash flow statement and the structure of income and expenses. Taking into account the consequences of using each of the available alternatives will allow you to make the optimal choice.

Practical part

Analysis of the company's internal environment

Table. Horizontal and vertical analyzes of the balance sheet

Balance sheet items	For the beginning of the year		At the end of the year		Change
	Absolute meaning	Relative value	Absolute meaning	Relative value	At the end of the year	For the beginning of the year
1. Nemater. assets 2. Basic avg. 3. Unknown page 4. Investment income in nemat. prices 5. Durable. Finnish investment 6. Postpone tax assets TOTAL FOR SECTION I	43 65371 17062 4468 41 427 87412	100% 100% 100% 100% 100% 100% 100%	39 67352 55012 2307 1997 1018 127723	90,69% 103,03% 322,42% 51,63% 4870,7% 238,4% 146,11%	0,000165 0,25 0,065 0,017 0,000157 0,001638 0,33	0,000139 0,23 0,195 0,008 0,007 0,003 0,45
1. Reserves: including: 1.1. Raw materials, materials and other analogue values ​​1.2. Goth. products 1.3. goods shipped 1.4. expenses bud.	87153 1617 77321 6489 1424 302 1125 - - 82653 60293 1920 370 173221 260633	100% 1,85% 88,71% 7,44% 1,63% 0,34% 100% - - 100% 72,9% 100% 100% 100% 100%	92271 3316 82021 4753 1320 861 403 3285 - 57147 48465 - 204 153310 281033	105,87% 205,07% 106,07% 73,24% 92,69% 285,09% 35,82 100% - 69,14% 80,38% - 55,1% 88,5% 107,82%	0,33 0,006 0,29 0,02 0,005 0,0011 0,0043 - - 0,31 0,23 0,0073 0,0014 0,66	0,32 0,011 0,29 0,016 0,004 0,003 0,0014 0,011 - 0,2 0,17 - 0,0007 0,54
periods 1.5. other supplies 2. Tax on ext. purchase price values ​​3. Deb. back more than 12 months. including: 3.1. Pok-li and customers 4. Deb.	5062 28222 759 759 38081 72124	100% 100% 100% 100% 100% 100%	5062 28222 759 759 50034 84077	100% 100% 100% 100% 131,38% 116,57%	0,019 0,1 0,002 0,002 0,146 0,27	0,018 0,1 0,002 0,002 0,178 0,19
back less than 12 months 4.1. Clients and customers 5. Short term. attachments 6. Den.
medium TOTAL FOR SECTION II BALANCE	100% 100% 73,9% 1,19% 0,45% 1,82% 22,5% 100% 100% 100%	124092 53622 33413 453 121 6882 12753 21 177735 281033	98,45% 124,05% 104,54% 87,79% 61,7% 874,46% 130,5% 100% 105% 107,82%	0,48 0,16 0,12 0,00198 0,000752 0,003 0,037 0,00081 0,64	0,44 0,19 0,118 0,0016 0,0004 0,024 0,045 0,000075 0,632

1. Established capital 2. Add. capital 3. Reserve. capital including: 3.1. reserves, image in accordance with the law 4. Undistributed. profit TOTAL FOR SECTION III

1. Loans and credits TOTAL FOR SECTION IV

Conclusion: This ratio is below the norm, both for the past period and the present. Quick ratio:

Conclusion: The quick ratio is below normal. And with each time period it decreases, thereby in the near future the company will not be able to fulfill its payment obligations, and problems with solvency will arise.

2) Asset management ratios

Working capital turnover ratio and duration of 1 turnover of working capital:

Conclusion: Fixed assets turn over 4.05 times per year. They make one revolution on average in 89 days.

Inventory turnover ratio:

Conclusion: Inventories circulate 6.4 times per year, that is, faster than working capital.

Accounts receivable turnover (DSO):

Conclusion: After delivery of products, the company waits for payment for 45 days, at the end of the year 26 days. Capital productivity ratio

Conclusion: One ruble invested in fixed assets is returned in the form of revenue of 10.1 rubles at the beginning of the year, and 12.2 rubles at the end of the year. The indicator is average.

Resource efficiency coefficient:

Conclusion: One ruble invested in assets is returned in the form of 2.5 rubles. revenue at the end of the year in the form of 2.9 rubles. Losses may occur.

3) Coefficients for managing sources of funds

Conclusion: Borrowed funds in the company's liabilities at the beginning of the year were 72%, at the end - 70%. Borrowed capital is used too actively and in large quantities.

4) Profitability ratios

Return on sales ratio

Conclusion: In both cases, 1 ruble of revenue contains 1 kopeck of net profit. The figure is very low!!!

Return on assets ratio:

Conclusion: At the beginning and end of the year there are 5 kopecks per ruble of assets. The low indicator is due to the fact that the company uses a large percentage of borrowed funds and this entails loan payments and low net profit.

Return on equity ratio:

Conclusion: For 1 ruble of equity capital at the beginning of the year there are 17 kopecks, and at the end of the year - 16 kopecks.

5) Bankruptcy forecasting coefficients:

K recovery = (1.02+6/12(0.5-1.02))/2=0.38

This indicator characterizes whether the company will be able to restore its solvency within 6 months following the reporting month. Thus, the conclusion follows that the company will not be able to do this.

To loss = (1.02+3/12(0.5-1.02))/2=0.445

This ratio shows whether the company will lose its solvency within 3 months after the reporting date. With this indicator, the enterprise may lose its solvency, since it is almost 2 times lower than the standard.

Altman's Z = 1.2K w +1.4K non-dispersal profit +3.3K profitability +0.6K coverage +K return

Conclusion: 4.655, that is, the possibility of bankruptcy is very low.

Type of financial stability:

∆ Own working capital (SOS) = (Equity - Non-current assets) = 84077-67352-92271=-75546

∆ Own and long-term sources of inventory formation = (Own working capital + long-term borrowed funds) = -75546+19221=-56325

∆ Total value of the main sources of inventory formation = (Own working capital + long-term and short-term borrowed funds) = -75546+196956=121410

Pre-crisis financial stability.

Balance Sheet Analysis

Fixed assets increased by 1981 thousand rubles. Most likely, new fixed assets were purchased.

Over the past year, intangible assets decreased by 10%, which leads to a decrease in production profitability.

Work in progress rose 31%, meaning new construction was started.

The company has long-term financial investments. Over the last year, they increased by 1956 thousand rubles; it is possible that the company's free funds were invested in the authorized capital of other enterprises or were used to purchase securities of other enterprises.

Inventories were increased and raw materials were purchased. Finished products increased by 4,700 thousand rubles. Most likely, goods were shipped to a warehouse for further sale.

Long-term accounts receivable appeared during the year and amounted to RUB 3,285 thousand. In turn, short-term accounts receivable decreased by 25,506 thousand rubles. or switched to long-term.

Short-term financial investments fell to zero.

The balance sheet currency is growing. This can be seen from the vertical analysis of the balance sheet, since non-current assets account for 45.5% of the balance sheet currency. In the previous period, the share of non-current assets was only 33.5% of the balance sheet currency.

Own capital is 30% of the balance sheet currency. Thus, the mechanism of borrowed capital is poorly used.

Retained earnings increased by 31% compared to the previous year. That is, company managers can direct these funds to provide accounts payable to other enterprises, and can also be used for financial, investment, and current investments.

Borrowed capital accounts for 70% of financing sources and almost 90% of short-term financing. If we compare accounts payable and receivable, then accounts payable are almost 4 times larger than accounts receivable. In general, we can say that the balance is positive. All indicators are quite good. The balance sheet currency is growing, long-term liabilities remain at the same level. Management expenses have fallen compared to the previous period, which means that managers pay out almost all profits to owners in the form of dividends. Determining the strategic financial position of the company, choosing a financial strategy and policy

Table. SWOT analysis

	Strong 1. Zaltman ratio is at a high level 2. New construction has begun 3. growth in capital productivity 4. In the near future there may be problems with solvency 5. Growth of the balance sheet currency 6. Pre-crisis financial stability 7. Increase in fixed assets	Neutral 1. Accounts receivable generally decreased 2. Additional capital remained the same 3. Non-current assets remained virtually unchanged	Weak 1. Increase in gross profit 2. Increase in inventories 3. Reduction in accounts receivable 4. Repayment of short-term financial investments by 100% 5. Debt on taxes and fees has increased 6. Most of the capital is borrowed, the company does not risk its own funds.
Opportunities 1. Attraction of borrowed capital 2. Government support 3. Expansion of the sales market 4. Possibility of effective investment activities 5. Use of reserves in the secondary market 6. Changing the structure of debtors due to expansion of the sales market
Threats 1. Continuation of the economic crisis 2. Increasing inflation rates 3. Emergence of new competitors 4. Creditors' demand for our obligations 5. Threat of non-fulfillment of obligations by debtors			6-1 6-2 4-1 2-3 5-5

Conclusion: An aggressive or moderate strategy should be applied depending on the degree of threats - the recommended financial strategy.

Corporate strategy - accelerated growth or limited growth.

Financial philosophy

Financial philosophy can be formulated as follows:

For the successful development and growth of an enterprise, economic stability is necessary. What can be achieved with effective financial planning, which involves organizing the optimal structure of assets and liabilities and effectively managing the process of formation and use of monetary funds. The goals of various levels should be coordinated. It is necessary to increase attractiveness for investors and clients. It is necessary to increase the profitability of services and organize more efficient work on the formation and use of funds.

The main financial goal of the company is to obtain maximum profit.

Strategic financial goals:

fulfillment of short-term obligations on time;

development of new markets for the company's products;

effective regulation of receivables and payables;

increasing the liquidity of working capital;

maximizing the profitability of enterprise assets;

ensuring the financial stability of the company;

formation of an optimal investment portfolio and a portfolio of financial assets.

Control standards for financial activities:

· increasing the current liquidity ratio of the enterprise to 1.5, and quick liquidity to 0.8;

· increasing profitability of sales up to 15%;

· increasing return on assets to 18%;

· obtaining long-term loans in the amount of 60% of all loans.

Financial policy is the direction of the organization's activities, focused on achieving industry average results with an average risk value.

The financial environment of the company is designed to provide the financial opportunity to implement the corporate strategy of its development, namely the strategy of limited growth. To do this, the company needs to achieve a balance between the limited growth of production activities and the required financial stability of the company.

Determining the optimal structure and price of capital

Financial leverage effect

R a = 34074/281033*100=12.12

L 10/90 = (1-0.2)*(12.12-18%)*(28103.3/252929.7) =0.8*(-5.88)*0.11=-5, 79

L 20/80 = (1-0.2)*(12.12-20%)*(56206.6/224826.4) = 0.8*(-7.88)*0.25=-1.576

L 30/70 = (1-0.2)*(12.12-21%)*(84309.9/196723.1) =0.8*(-8.88)*0.42=-3, 04

L 40/60 = (1-0.2)*(12.12-23%)*(112413.2/168619.8)=0.8*(-10.88)*0.66=-5, 8

L 50/50 = (1- 0.2)*(12.12- 25)*1=0.8*(-12.88)*1=-10.304

L 60/40 = (1-0.2)*(12.12-26%)*(168619.8/112413.2)=0.8*(-13.88)*1.5=-16, 65

L 70/30 = (1-0.2)*(12.12-30%)*(196723.1/84309.9)=0.8*(-17.88)*2.33=-33, 3

L 80/20 = (1- 0.2)*(12.12- 33%)*(224826.4/56206.6)=0.8*(-20.88)*4=-66.8

L 90/10 = (1- 0.2)*(12.12- 34%)*(252929.7/28103.3)=0.8*(-21.88)*9=-246.15

Since financial leverage turns out to be negative at any value, we take the ratio of borrowed and equity funds as 0:100 for calculation, respectively.

Leverage shows how many times net profit will increase if gross profit increases by 1. In a crisis, it is better to choose the minimum non-negative leverage. In this case, it is 0, with a capital structure of 0/100.

At the moment, the company has 36.8% of its own funds and 63.2% of borrowed funds.

Of the borrowed accounts payable is 19%, bank loan is 50.9%, debt to participants in the payment of income is 0.075%.

From own authorized capital 1.8%, additional capital - 10%, reserve capital - 0.2%, retained earnings 17.8%.

Calculation of the price of borrowed capital

1. Cost of bank loan
K o

The share of individual elements of capital in the total amount, share

The newly raised capital will be retained earnings.

Weighted average cost of capital:= 1*15.7=15.7

MCC turning point = forecast. Emergency/forecast SK=1600/1=1600

Firm's marginal cost of capital schedule

Investment activity management

Cash flows of projects (in thousand rubles)

Table

1. Payback period of projects

РР1=350+300+350+200=1200 (4 years)

РР2=200+250+150+250+150=1000 (5 years)

PP3=350+200+140+110+150=950 (5 years)

2. Discounted payback period

DPP1=(350/1.17)+(300/1.17^2)+(350/1.17^3)+(200/1.17^4)+

DDP2=(200/1.17)+(250/1.17^2)+(150/1.17^3)+(250/1.17^4)+(150/1.17^5)+ (550/1.17^6)+(400/1.17^7)+(300/1.17^8)=1082.177 (8 years)

DDP3=(350/1.17)+(200/1.17^2)+(140/1.17^3)+(110/1.17^4)+(150/1.17^5)+ (550/1.17^6)+(250/1.17^7)+(350/1.17^8)+(145/1.17^9)=1033.149393 (9 years)

3. Net reduced effect

NPV1=(600/1.17^10)+(850/1.17^11)+(950/1.17^12)=420.3 (12 years)

NPV2=(600/1.17^9)+(700/1.17^10)+(800/1.17^11)=433.9 (11 years)

NPV3=(550/1.17^10)+(600/1.17^11)+(800/1.17^12)=342.6 (12 years)

4. Accounting profitability

ARR1 =((4800-350)/12)/(350/12)=370.8/29.1=12.7

ARR2= ((5200-200)/11)/(200/11)=454.54/18.18=25

ARR3=((4195-350)/12)/(350/12)=320.4/29.1=11.01

5. Internal return

Profitability index=(1200+420.3)/1200=1.35

Р2=(1000+433.9)/1000=1.43

Р3=(950+342.6)/950=1.36

Table of investment project assessment results

Project evaluation criteria	The most attractive project	Attractive project	Least attractive project
Payback period
Discounted payback period
Accounting yield
Net reduced effect
Internal Return
Profitability index

Conclusion

This course work would consider the topic of a bank loan as a source of financing for an enterprise. Within the framework of this topic, the possibility of obtaining this type of loan was presented. As a result, it was found that if financial and other opportunities are available, this is a good solution for implementing investment projects.

Next, in the practical part, an assessment of the financial condition of the enterprise was carried out. But it did not give clear results. For example, with pre-crisis financial stability, the probability of bankruptcy is very low. Despite very low profitability, the company is still quite solvent. A moderate financial strategy was also chosen. At the next stage of the analysis, the cost of equity and debt capital was assessed. As a result, it was determined that the newly raised capital would be retained earnings. And at the final stage, three investment projects were considered and one of them, the most profitable, was selected.

In the course of their activities, leasing companies can use various sources of financing. First of all, their choice will depend on the ownership structure of the organization. Thus, the following main types of leasing companies are distinguished:

1. Independent leasing companies;

2. Leasing companies affiliated with banks;

3. Leasing companies that are part of financial and industrial groups;

4. State leasing companies;

5. International leasing companies;

6. Leasing companies created by manufacturers of machinery, vehicles, and equipment.

For example, in the territory of Irkutsk there are currently 22 organizations providing leasing services: some of them are registered in the territory of Irkutsk, others are branches of leasing companies registered in other regions.

Among the leasing companies represented in Irkutsk, 7 are independent, 5 were created by banks, the rest are part of financial and industrial groups, created by suppliers, financed by the state or organized with the participation of foreign capital.

Let's consider financing independent leasing companies.

The most common source of financing for independent leasing companies (hereinafter referred to as LC) are bank loans. Typically, such bank loans are lines of credit. Approval for a certain amount of a loan application is issued by the bank after a comprehensive analysis of the LC. Its legitimacy, financial position, structure of the leasing portfolio, etc. are studied.

At the same time, LK can attract loans from several banks. The need for this is caused by restrictions on the loan amount in each bank, as well as the conditions under which the bank is ready to issue funds. These conditions include: term, minimum advance amount, interest rate, minimum and maximum amount of financing, liquidity of the leased asset, requirements for its location and place of operation.

As the LC needs to raise funds to finance a particular leasing project, the bank is provided with a specification for the subject of leasing, as well as a conclusion on the financial situation and/or a package of documents for the lessee. Based on these documents, the bank either transfers funds to the personal account account or refuses financing.

Accordingly, despite the apparent simplicity and availability of such a source of financing as a bank loan, it has a number of significant disadvantages.

1. A number of restrictions are imposed on the personal account:

1.1. According to the duration of the leasing project. Due to the fact that the bank provides funds for a specific period, usually not exceeding 3 years, LC does not have the opportunity to enter into a leasing agreement for a longer period.

1.2. For a minimum advance payment amount. Typically, the bank is ready to finance no more than 70% of the purchase amount of the leased asset. Accordingly, if LC is unable to invest its own funds in the project, it is forced to ask the client for a 30% advance.

1.3. According to the list of leased items. Banks are quite strict in assessing the liquidity of leased items, which act as collateral for a loan. Accordingly, LCs are limited by this framework and can only enter into an agreement for machinery, transport, and equipment that is liquid from the bank’s point of view. In this case, the point of view of the bank and the LC may not coincide.

1.4. Application review period. Due to the fact that banks issue tranches for specific leasing transactions, they conduct additional assessments of lessees. The first analysis is carried out by LC. To do this, she requests a certain package of documents, often quite voluminous. Based on these documents, a LC conclusion is formed, which confirms the legitimacy of the lessee, his creditworthiness, determines the financial burden on existing obligations, and studies the cash flows on the accounts. After making a positive decision on the leasing project, the LC transfers the information to the bank. The assessment of the lessee by the bank can be carried out on the basis of the conclusion drawn up by the lessor or independently on the basis of documents provided by the LC according to the list of the bank. It is not uncommon for a bank list of documents to be much broader than the list of personal accounts. Accordingly, additional papers are requested from the lessee. As a result, the decision-making period is formed from two components: the period during which the lessee is considered by the LC, and the period necessary for the bank to study the information provided. Because Many lessees “need the leased item by yesterday”; the competitiveness of the lease is reduced due to the long consideration of the application and the extensive list of documents.

1.5. A number of banks are ready to finance a leasing project if there is additional collateral. Such security, for example, can be a pledge of property by the leaseholder or the lessee. There are banks that require a guarantee from the lessee for the lease as collateral. In other words, by issuing such a guarantee, the lessee agrees that the lease payments transferred by him are directly used to pay off the loan debt of the leaseholder. Such a requirement often causes lessees to have additional questions, bewilderment and a decrease in trust in the lessor.

1.6. Release of collateral. Due to the fact that the leased items are pledged to the bank as collateral for loans, some time may pass from the end of the leasing agreement before the rights to the leased item are transferred to the lessee. This problem arises most acutely if the client plans to get a loan and pledge the leased asset. To achieve this, he carries out an early purchase and hopes for a quick transfer of ownership of the leased asset. Meanwhile, until the relevant documents are transferred to the lessee, the leasing company must pay off its obligations to the bank, as well as wait for the property to be released from the bank as collateral (sometimes these procedures take up to two weeks).

1.7. Consent to assignment and subleasing. Such changes also require bank approval, which is given within 3-7 days. In this case, it is again necessary to collect a complete package of documents for the new lessee and conduct a full financial analysis of it.

1.8. Restriction associated with the minimum value of the leased asset. A number of banks have a similar restriction. Accordingly, LC loses clients due to the fact that it cannot find financing for such projects. The second side of the coin may be too high an increase in the cost of the leasing project, due to the fact that bank interest, commissions, and the lessor’s margin are accrued in full on a small amount, making the LK’s offer uncompetitive.

2. The lessor may face additional risks:

2.1. As a rule, by the date of receipt of the loan, the leasing payment schedule has already been calculated under certain banking conditions and agreed with the client. And LK takes on additional risk associated with an increase in interest rates. In this case, if it is not possible to agree with the bank on increasing the rate, starting with the next transactions, or with the lessee on revising the schedule, the LC will be forced to refuse to complete the transaction or work for a minimum commission.

2.2. In the event that the lessor operates only with borrowed funds, he is highly dependent on the timely payment of lease payments by the lessee. In the event that payment from the client is not received by the date of payment of the principal debt and interest on the loan, LK is forced to look for other sources of repayment of part of the loan or admit that it is unable to pay the bank on time for this payment. This may lead to a deterioration in the credit history of the LC, which will inevitably affect the results of its activities in the future.

There are often situations when the bank that will finance the transaction offers credit resources to the LC at a higher rate than to the client. This happens in situations where the lessee has a positive credit history and a stable financial position. But LCs that finance their activities with credit resources, as a rule, have insufficient financial stability. Accordingly, the risks that the bank faces when issuing a loan to a private company, and not directly to the lessee, are higher. As a result, the benefits of leasing for the client may be lost. Let's look at an example.

Initial data:

Cost - 1,180,000 rubles.

Leasing term - 36 months.

Advance - 30%.

Useful life - 5 years.

The depreciation period without acceleration factor is 61 months.

The loan rate for the client and the leasing company is 15%.

Purchase of equipment
VAT refund
Payout%
Repayment of principal
Tax savings by %
Net cash flow

The cost of acquiring a fixed asset on lease.

Leasing payments
VAT refund
Tax savings on income tax
Net cash flow
Total net cash flow for the entire period:

Result:

Credit: -1,050,555.07 rub.

Leasing (more profitable): -1,047,750.20 rub.

Let's assume that the client was offered a loan at 14.5% per annum (0.5% less than the interest rate for the leasing company).

Cost of purchasing equipment on credit.

Purchase of equipment
VAT refund
Payout%
Repayment of principal
Tax savings on depreciation
Tax savings by %
Net cash flow
Total net cash flow for the entire period:

Comparison of costs for the purchase of fixed assets.

Result.

Credit (more profitable): -1,044,202.15 rub.

Leasing: -1,047,750.20 rub.

Thus, the use of a bank loan as the only source of financing for the activities of the LC significantly reduces its competitiveness in terms of key indicators for clients:

1. Application review period.
2. Leasing term.
3. Minimum advance amount.
4. Minimum value of the leased item.
5. Volume of the package of documents.
6. Price increase rate.

The appreciation rate is a calculation used to compare the cost of leasing.

Let's calculate what part of the appreciation rate is formed by interest.

Leasing term - 13 months.

Initial amount - 1,180,000 rubles, advance - 30%.

Interest rate - 15%.

	Repayment of the principal debt, including VAT	Balance of principal, including VAT	Repayment of the principal debt, excluding VAT	Loan interest, excluding VAT	Leasing payment, excluding VAT	Leasing payment, including VAT

The average rate of appreciation under leasing agreements with a uniformly decreasing schedule of leasing payments is 8%. Taking this into account, the amount of the LC commission and additional expenses in absolute terms will be 10,985.8 rubles. per year (calculated from the amount of required financing). Thus, in order for LC to earn 500 thousand rubles. per month with an advance of 30% and a loan rate of 15%, the cost of the leased property should be 54 million rubles. per month including VAT.

To summarize the above, it should be noted that, despite the simplicity and relative availability of such a source of financing activities as a bank loan, independent leasing companies should, if possible, look for other ways to raise funds, for example, use their own funds (profit and authorized capital), place bonds, attract foreign, cheaper capital.