When deciding on raising funds, the financial director should take into account what the bulk of the company’s fixed costs are connected with and what is the situation with interest payments. Otherwise, there is a risk of seriously undermining the financial stability and profitability of the business.
Financing structure issues are important for any manager with the right to make decisions on attracting loans or investments. They are one of the most difficult. Should I use borrowed capital or limit my own? If used, will a bank or private investor be a creditor? If this is a private investor, what conditions to offer him? Etc. Continue reading
Defining the boundaries of financial sustainability of enterprises is one of the most important problems in a market economy. Inadequate financial stability may lead to a lack of funds to finance current or investment activities, while excessive financial stability will impede development, increasing the time of capital turnover and reducing profits. Justify the parameters of such sustainability allows financial analysis. It not only provides an opportunity to judge the situation of the enterprise at the moment, but also serves as the basis for developing strategic decisions that determine the prospects for the development of the company. Continue reading
Financial leasing satisfies the need for the most scarce type of borrowed capital – a long-term loan. Fixed assets transferred to financial leasing are included in the fixed assets of the lessee. The main goal of managing financial leasing from the standpoint of attracting borrowed capital is to minimize the flow of payments for servicing each operation. The process of managing financial leasing in an enterprise is carried out in the following main stages.
Financial leasing (leasing) is a business operation that involves the lessor acquiring fixed assets by order of the lessee with further transfer to tenant for use for a period not exceeding the period of their full depreciation with the obligatory subsequent transfer of ownership of these fixed assets to the lessee. Financial leasing is considered as a type of financial loan. Fixed assets transferred to financial leasing are included in the fixed assets of the lessee. Continue reading