Forms of Financial Support for Enterprise
Forms of financial support for enterprise
Entrepreneurial finance is an important issue in business. This article is devoted to the issue of financing of business.
There are many forms and methods of financing the enterprise: for this purpose may be used the issue of shares, loans, leases financing, mortgages, etc.
Each of the used form of financing has certain advantages and disadvantages. Therefore, in any investment project should be a thorough assessment of the effects of using different schemes and alternative forms of financing.
The concept of "financing business"
Financing is one of the types of support funds business. Financing and lending a very similar concept, but still have some differences from each other. Lending can be considered as part of the financing. Lending as funding provides the financial needs of production. Financing is gratuitous and irrevocable provision of funds in various forms for some activity. An important feature of the financing appears that the right of property in the subject, which provided the funds does not arise. Besides funding could be only cash. Another major feature of investing is to make profit, while financing not intended such purpose.
It is possible to provide the following types of financing of companies:
• Self-financing
• Public financing
• Bank loan
• Commercial loans
• Shares
• Leasing
• Intergovernmental funding, etc.
Let us consider all types of finance companies.
State funding.
Today, the government takes the responsibility to finance the priority state program of development of industry, agriculture, transportation, communication, and to provide funds functioning social infrastructure. All the financial measures of the government are directed not only to the direct increase in financial resources of businesses, but also have a stimulating nature and are designed to direct their development, taking into account national interests. The state supports small and medium enterprises, usually in
Entrepreneurial finance is an important issue in business. This article is devoted to the issue of financing of business.
There are many forms and methods of financing the enterprise: for this purpose may be used the issue of shares, loans, leases financing, mortgages, etc.
Each of the used form of financing has certain advantages and disadvantages. Therefore, in any investment project should be a thorough assessment of the effects of using different schemes and alternative forms of financing.
The concept of "financing business"
Financing is one of the types of support funds business. Financing and lending a very similar concept, but still have some differences from each other. Lending can be considered as part of the financing. Lending as funding provides the financial needs of production. Financing is gratuitous and irrevocable provision of funds in various forms for some activity. An important feature of the financing appears that the right of property in the subject, which provided the funds does not arise. Besides funding could be only cash. Another major feature of investing is to make profit, while financing not intended such purpose.
It is possible to provide the following types of financing of companies:
• Self-financing
• Public financing
• Bank loan
• Commercial loans
• Shares
• Leasing
• Intergovernmental funding, etc.
Let us consider all types of finance companies.
State funding.
Today, the government takes the responsibility to finance the priority state program of development of industry, agriculture, transportation, communication, and to provide funds functioning social infrastructure. All the financial measures of the government are directed not only to the direct increase in financial resources of businesses, but also have a stimulating nature and are designed to direct their development, taking into account national interests. The state supports small and medium enterprises, usually in