MAIN SOURCES OF FINANCING OF AGRARIAN ENTERPRISES
Journal Title: Наукові праці. Серія "Економіка" - Year 2017, Vol 306, Issue 294
Abstract
The article analyzes the state of bank crediting of agroindustrial complexes and the specifics of alternative sources of raising funds for agrarian enterprises in Ukraine. The research of the financial support of agroindustrial enterprises, including agricultural producers, shows that they mainly work at the expense of their own resources, whose share in production activity is significant, but insufficient to finance. Limited own funds force agrarian enterprises to attract bank lending and alternative sources of business financing. The paper considers the main risks of the enterprises of the agrarian sector. The article gives reasons for the difficulty of obtaining the necessary amount due to bank lending for enterprises in the agrarian sector. Such reasons are seasonal production, depreciation of fixed assets, enterprises have obsolete equipment, which banks do not accept as collateral. It should be noted that banks have limited ability to collect bad and bad debts owing to the imperfection of the legislative framework. Therefore, high credit risks for agricultural enterprises compensate them for high interest rates and stringent requirements for borrowers. The imperfect structure of the banking system also holds back the development of credit relations with the agrarian sector of the economy. The lack of working capital in the enterprise and the inaccessibility of obtaining the required amount due to bank lending force companies to look for alternative sources of financing their business. Thus, alternative sources of financing are: double warehouse certificate, agrarian form, leasing, loan in a credit union, leasing of necessary equipment, commercial loans, investments in own business. Each of the listed sources has its advantages and disadvantages, so the business owner must carefully select one or another source. Using these sources of financing can significantly increase working capital of the company, which in turn will improve the financial position of the company as a whole
Authors and Affiliations
L. A. Yevchuk, О. V. Ivat
Keywords
Related Articles
- EP ID EP373891
- DOI -
- Views 93
- Downloads 0
THE DEVELOPMENT OF COMMERCIAL ACTIVITY IN THE MARKET OF PRODUCTS AND SERVICES
THE DEVELOPMENT OF COMMERCIAL ACTIVITY IN THE MARKET OF PRODUCTS AND SERVICES The essence of the business enterprise in a competitive environment is considered in the paper. In the article expediency of development of qu...
THEORETICAL ASPECTS OF STRUCTURE OF MERGERS AND ACQUISITIONS
The theoretical aspects of the strategy of «mergers and acquisitions» are studied in the article, the classification of mergers and acquisitions processes of companies is highlighted. Methodological component selected He...
INNOVATIVE ACTIVITY OF UKRAINIAN INDUSTRIAL ENTERPRISES: CURRENT STATE AND DEVELOPMENT PROSPECTS
The article examines the peculiarities of innovation activity and the implementation process of inno-vations to national industry. The dynamics of the competitiveness index of Ukraine among the countries worldwide is exa...
INTERNATIONAL EXPERIENCE OF SOCIAL RESPONSIBILITY FORMATION
The article analyzes the international experience of social responsibility formation. The legal regulation of social responsibility in the world was Investigated. It was found that for the dissemination of the principles...
MANAGEMENT OF THE COMPETITIVENESS OF A BANK
The article deals with peculiarities of the competitiveness of the bank. Exposed the shortcomings in the domestic banking prac-tices that prevent increasing strategic effectiveness of the bank. Practical recommendations...