Choosing a source of financing for a business project or development of an existing small business. Business financing: main sources and programs Funding sources for business ideas

Any business needs funding at the stage when it is just starting and has not reached self-sufficiency.

Young businessmen need support, and since the state is in no hurry to provide it, they have to look for alternative options, where everyone chooses to their taste.

External options

External sources include those that are not associated with the firm itself and allocate money from outside. They may be attracted by different things - from a share in the profits to a percentage of the debt - but the essence is always the same: you can always find someone who will finance the project.

There are two types of them:

• Debt. These are sources that provide money at interest and timely return. This method of financing is considered the best, since it implies that the relationship between the lender and the borrower will end as soon as the entire loan and interest on it are paid. However, there is a risk: if the company is unable to repay the loan, this will affect its reputation and overall financial condition.
• Equity. These are sources that provide money against a share in future profits or against a share in a firm. The relationship with the lender will never end, because after the conclusion of the contract, he becomes the owner of a part of the borrower's organization.

Debt includes:

• Loan secured by property. In this case, the guarantor that the loan will be repaid becomes the property of the borrower - most often immovable, as the most stable both in price and in safety.
• Overdraft. A loan in which the amount of the debt is paid not in installments, but in full, within a specific period.
• Bonds. In this case, the company pays with IOUs, securities, which imply that the debt will be paid on time.
• Leasing. In this case, the organization receives an asset in advance for use, as if on a lease, with the right to repurchase it later. It is considered the most profitable way of lending, since it involves receiving not just money, but a certain useful thing in work.

Shares include:

• Equity raising. In this case, the company issues shares, which over time will begin to bring profit to shareholders. At correct advertising and a well-thought-out business plan, you can make good capital on them.
• Attracting venture capital. Venture capital is like a game of Russian roulette - investors provide young companies with money if they find it interesting. In return, the investor receives a share in the income of the enterprise.

All external sources of funding involve risk. Loan defaults, investors misbehaving or refusing to invest further can undermine the fortunes of a young firm. Therefore, it is considered that best solution is an attempt to survive on internal resources.

Internal options

Internal sources include those that do not require the involvement of people from the outside and do not differ in such great risks. Among them:

• Undestributed profits. If the company already has the first profit, it can use it to satisfy its needs and provide the next profit, which can be used to expand and improve the enterprise.
• Automatic funding. In this case, the passive credit debt of the company increases, as well as distributed, but not yet paid wage. They are used to meet the needs of the enterprise, which significantly increases its risks - if the business does not pay off, there will be nothing to pay wages and repay the loan.
• Capital optimization. In this case, finances appear due to the reorganization of the business. For example, a company buys better machines that will run twice as fast in the future, or cuts gas costs to free up additional cash.
• Getting rid of non-core assets. If an asset does not bring benefits, you can sell it and buy something that will bring it.

In general, the competent use of internal assets and start-up capital- pledge of any successful business. But sometimes you simply cannot do without external financing - at the initial stages, for example, when the activity goes to zero and is not yet profitable.

You can learn more about all the options for raising funds from the following video:

What do you need to get investment?

Money doesn't come from thin air. To get funding, you need to attract an investor, and to do this, you need a few things:

• A well-thought-out business plan that an investor can be interested in, and preferably a person who can present it. It should indicate:
  • The idea and purpose for which a business is created.
  • Its description is what it will bring to people, how it will look for the consumer.
  • Investment proposal - what exactly is required from the investor and what he will receive if the business works out.
  • Team - who is going to work on the project and how professional these people are.
  • Product, market and production - how the product or service will be produced, how it will be sold and whether buyers are interested in it.
  • Assets - what does the firm have in order to do business? Intellectual property should also be mentioned in this paragraph.
  • Business model - how everything will work, how the activity will be arranged from the inside.
  • The economics of the project are the estimated financing, start-up capital, the time when, according to the forecast, the first profit is expected.
  • Actions to be taken after the investment is received – what will be bought, what will be improved and where it will lead.
• Pledge. If it is not possible to attract an investor solely on the idea - and this may well happen if it is not truly brilliant (and in this case history knows examples when a genius never found funding), something will need to be offered bank as collateral for a loan. Real estate or a car is fine.
• Credit history. To get a loan, it is necessary that there are no past due debts.

In addition, you need patience in order to continue trying after the tenth refusal, and determination, so that even after the hundredth “no” you continue to believe in your project and achieve its implementation.

Happy day to everyone who stumbled upon this post in the middle, or at the end of the working day! Today we will reveal such a minor, auxiliary topic as the main sources of business financing. You just need to delve into this topic if your goal is to understand how the economic system society. Let me remind you that the study of this section is provided for by all the specifications of the discipline "Social Science"

Sources of financing

Business is, in short, entrepreneurial activity, the purpose of which is to make a profit, that is, roughly speaking, to make money. Business starts with the first transaction, when you sell something: a product or a service, or something else (who knows what will be invented there in the future!).

Any business starts with start-up capital. He can be anyone. For example, one of my friends started a business with 10,000 rubles and from a closet that he rented. In it, he began to repair computers. This happens if you do not have rich relatives who can help with start-up capital.

Thus, the first source of business financing is personal savings of citizens. This is the money that you put in socks, or in a box, or in a piggy bank.

Second source business finance are investments. An investor can invest in your company, firm, or personally in you if he sees the potential in your business. Of course, the investor is also wildly risky. But that's why he is an investor, to risk his money.

For example, everyone knows the story Apple, so many movies about Steve Jobs were shot! Steve himself called investors to invest in his startup in the garage. In the end, the guys from Silicon Valley were lucky and they invested money in them, and did not lose.

As for Russia, there are many investors in Russia, but they are afraid to invest money, preferring foreign offshore companies and foreign companies.

The third such source are bank loans. You can go to the bank, and if you have a good credit history and you defend your business plan well, they can give you a substantial sum.

Another source is government grants. Searching on the Internet state organization, which distributes grants for entrepreneurial activities and forward. For example, in our Perm Territory, the Ministry of Agricultural Development gave, and seems to give, grants to those who decided to start farming.

On this, in principle, the main sources of financing end and the non-main ones begin.

Among them, for example, you can highlight loans from individuals. For example, you know that your friend has money. You come to him and tell him to lend them to you. And he can give. Or maybe not. And if a person is not your friend, then he can hire bandits to beat your debt out of you.

It is clear that this is all some kind of rubbish, but there are persistent rumors that they have returned. So nothing can be ruled out.

Also, non-primary sources include the rental of property. Well, this is understandable if you already have a business and it has some kind of commercial property: official cars, or apartments, or retail space.

Something else important

There is such a task in the Unified State Examination in social studies of the second part of the test, in which you need to make a plan on a similar topic. By the way, I will now lay out this plan, which I made with my own hand. I do not recommend writing it off directly, because if it is published here, it is no longer unique.

Plan for the task of the second part:

Topic: Main sources of business financing

1. The concept of a source of business financing.
2. Internal sources

• Profit from the lease of the company's assets
• Financial savings
• Profit from the sale of company shares

3. External sources

• Bank loans
• Investment funds
• Public funding: e.g. through a system of grants

4. Financing a business as a condition for the success of its operation

5. Business planning as a condition for providing business with financing

I think you got the idea on this topic! Share the article on social networks, and also join our Vkontakte group.

Sincerely, Andrey Puchkov

When choosing sources of financing for business ideas, most entrepreneurs do not take into account that investments are needed not only at the stage of opening, but also throughout the life of the established enterprise. If you want the project to be successful and long-term - learn how to raise funds!

The concept of "business financing" and classification

This term means supply (providing) entrepreneurial activity financial resources. Depending on the place of origin of material resources, internal and external financing are distinguished.

At the initial stage of formation production process managers use external resources, the origin of which is provided by the following sources:

• state ;
• banking organizations;
• shareholders;
• non-profit companies;
• partner firms;
• individuals.

When production begins to generate income, it becomes possible to attract internal resources, including:

• net profit;
• revenue of the future periods;
• (deductions for equipment);
• target reserves allocated to cover future costs.

Ideally efficient and profitable business- self-sustaining and does not require external costs. However, at first and during the expansion of the scope of activities, it is difficult to do without appearance funding - further about each of them in detail.

The main sources of business financing in comparison

Common among subjects economic activity practice - attraction of borrowed money. To maintain the right to full control own business, most entrepreneurs take loans, credits, loans.

Bank lending

Loans from banks occupy a leading position among the ways to finance small businesses, covering an extended range of cost assignments: industrial, consumer, agricultural, mortgage loans.

pros:

• prompt decision on extradition;
• independent distribution of funds without control and instructions from the investor.

Minuses:

• short term of use (standard - 36 months);
• the need to provide collateral; mandatory payment of interest and insurance premiums.

Leasing programs

Leasing is a complex form of financial lending based on the provision of fixed assets for rent with subsequent redemption.

The subject of leasing can be enterprises, land, vehicles, equipment, property (movable and immovable).

pros:

• financing is calculated in 100% ratio with the cost of equipment - for comparison, banks require 10-15% of the price;
• there is no requirement to provide a pledge - such is the leased (purchased) equipment (site, transport);
• debt in the balance sheet of the organization does not increase;
• more loyal conditions in comparison with a bank loan;
• all payments by the lessee are included in the costs of the enterprise.

Minuses:

• when applying for a lease, an initial payment may be required - up to 30% of the value of the property;
• not all leasing lending schemes are suitable for entrepreneurs working under a simplified taxation system - you should carefully choose a company for cooperation;
• VAT is charged on the lease amount.

trade loan

Form of mutual settlements between firms. You can order required item(equipment) with deferred payment. This method is often used by entrepreneurs whose activity is the sale of products from another manufacturer: they take a wholesale batch of goods for purchase, and the calculation is made after it is sold in a retail network.

A method of mutually beneficial cooperation between firms of different directions is also possible - the ordered goods (service) are paid in kind - by what another company produces.

State subsidies, tax incentives

Beginning entrepreneurs receive government assistance in starting a business. One of the means of such assistance is grants. These are one-time payments from the state, local governments or international organizations to cover part of the costs, capital costs or contributions.

In addition, the taxation system provides special conditions for individual entrepreneurs(IP), regulated federal law No. 477-F3.

The following individual entrepreneurs can obtain the right to tax holidays (zeroing the tax rate) in 2016:

• registered for the first time;
• who have chosen one of the taxation schemes - simplified (STS) or patent (PSN);
• leading activities in the social, industrial or scientific sectors.

Holidays are not established throughout Russia, in each region they are established by the local authorities at their discretion. The benefit is also valid in 2020. Please note that it is calculated for two tax periods (years) for each specific individual entrepreneur.

Nevertheless, no matter how good and promising the idea may look, minimize expenses and rely on your own resources, remembering the notorious saying: “You take someone else's, but you give yours!”

Grants and other sources of project funding

Undoubtedly, the most attractive form of small business financing is a gratuitous targeted subsidy for Scientific research, training, treatment and implementation social projects. However, to be eligible for a government or commercial grant, your idea must meet the following criteria:

1. presenting an evidence-based justification for the importance of the project;
2. quick payback - grants are allocated for short term(from several months to a year);
3. a clearly developed plan for the implementation of a business idea with an indication of the timing of achieving the goals;
4. willingness to take on a certain part of the costs;
5. a report for each penny spent from the allocated funds.

Although state grants are more designed to support scientists and young professionals, Russia annually allocates funds from the budget to subsidize small forms of ownership.

In parallel, they are being developed at the state and regional levels - information on existing projects is presented in the territorial employment centers and on the official website of the Ministry of Finance.

Foreign investors are also looking for promising representatives of small businesses and are ready to invest impressive sums in the development of interesting projects. However, keep in mind that such “donors” often demand a share of ownership or a large percentage of the profits in return, and also set the condition for officially securing authorship of the idea.

If you cannot do without attracting additional investments, once again make sure that the decision you made is correct, calculate all the possible risks and set yourself a time frame for repaying the loan, which you will definitely meet!

2.7 Main sources of business financing

I. Internal sources of business financing (net profit, depreciation)

II. External sources of business financing (bank loans, investments, etc.)

Financing- replenishment Money enterprises.

Sources of business financing:

1) Internal (accumulated profit, depreciation, property income, additional investments)
2) External (bank loan, investments, sale of shares/bonds, budgetary funds)
- When choosing sources of financing, forecasting of possible changes in the composition of the assets and capital of the enterprise is carried out.
- The state has the right to finance private business.
I. Internal sources of business financing.

Internal sources can serve as the net profit of the firm and depreciation.

Their use is called self-financing ”, i.e. financing from own funds. Self-financing is mainly inherent in small enterprises that find it difficult to get money from other sources.

The profit of these enterprises is small, so it is extremely rare to expand production with its help. There is one more source of self-financing - depreciation deductions .

Consider the possibilities of their use on a conditional example.
Suppose that an entrepreneur bought a machine for 150 thousand rubles, the service life of which is 5 years. This means that the annual depreciation rate will be 30 thousand rubles. (150 OOO: 5). Depreciation deductions are included in the costs of production and sale of goods, so if an enterprise produces 300 products per year, then the price of each product will include 100 rubles. (30,000: 300). After 5 years, the entrepreneur will accumulate 150 thousand rubles. and will have to buy new machine. But since technical progress does not stand still, after 5 years a similar new generation machine may cost more and money will have to be added.

I. External sources of business financing.
External sources are divided into two groups: debt financing and grant financing.

Grant financing is the representation of funds in the form of gratuitous charitable donations, assistance, subsidies.
Debt financing refers to debt capital. Borrowed capital includes: short-term credits and loans; long-term credits and loans; accounts payable.
External sources are bank loans, funds from budgets of different levels, funds from extra-budgetary funds, funds from the population.

Examples of external sources of business financing:

Joint business, partners get the opportunity to expand their financial resources due to the effect of economies of scale;
- sale of shares - a way to attract finance from outside;
- trade (or commodity) credit (sale of goods with deferred payment);
- public budget financing: direct capital investments ( state enterprises); subsidies (partial financing of firms) are issued to both public and private firms; state order (the state does not finance costs, but provides the company with income from the sale of goods in advance).
- Bank loan;

Bank loan (the most common form of financing) - amount of money issued by the bank a certain period on the terms of repayment and payment of a certain percentage.

Loans are of two types - short-term and long-term. Short-term loans are issued for a period not exceeding one year, and long-term - more than one year.

Investments - long-term investments capital in order to generate income. Investment is indispensable integral part modern economy. Investments differ from loans in the degree of risk for the investor (lender) - the loan and interest must be repaid within the agreed timeframe, regardless of the profitability of the project.

Atconditions that ensure the effectiveness of investment:

1) Investing makes sense if the return on investment exceeds the rate of inflation
2) Investing is only worthwhile if you can get more net income from it (after taxes) than from keeping money in a bank.
3) Investment is possible only in the most profitable projects.

Do not confuse investing and financing.

Financing- the allocation of funds or resources to achieve the intended goals. If the purpose of financing is to make a profit, then financing becomes an investment.

No company can exist without financial investments. It does not matter whether the business project is at the beginning of implementation or has been in existence for several years, its owner faces a difficult task - to constantly look for and find sources of business financing.

Main types of business financing sources

Finance is the total amount of funds that ensure all the activities of the company: from solvency to suppliers and landlords in the present to the possibility of expanding the scope of interests in the future.

Unfortunately, from time to time there are reasons that impede the smooth and uninterrupted operation of the enterprise. Among them may be:

• funds from the sale of products come later than it is time to pay off debt obligations,
• inflation devalues ​​the income received so that it is impossible to purchase raw materials for the production of the next batch of goods,
• expansion of the company or the opening of a branch.

In all of the above situations, the company has to look for internal and external sources of financing.

Funding source - a donor resource that provides a permanent or temporary inflow of tangible and intangible funds. The more stable the company's business is, the higher its liquidity in the economic market, so the main headache for an entrepreneur is to find the most the best source financing.

Types of funding sources:

• interior,
• external,
• mixed.

Financial analysts insist on the idea that the main sources should be rooted in several different sources, because each of them has its own characteristics.

Internal sources

Internal sources of financing are the totality of all the organization's own tangible and intangible resources that were received as a result of the company's work. They are expressed not only in money, but also in intellectual, technical and innovative resources.

Internal sources of business financing include:

• cash income,
• depreciation deductions,
• issued loans,
• withholding salaries,
• factoring,
• sale of assets,
• reserve profit,
• redistribution of funds.

Income in money

Profit from the sale of a product or service belongs to the owners of the company. Some of them are paid as legal dividends to the founders, and some go to ensure the company's performance in the future (purchases of raw materials, payment work force, utility bills and taxes). Best suited as a source.

Depreciation deductions

This is the name of a certain amount set aside in reserve in case of breakdown or wear and tear of equipment. It should be enough to buy new technology without the risk of getting into other sources and assets. They can be used as an investment in a new idea.

Internal sources of business financing

Issued loans

Those funds that were issued to customers on a loan basis. If necessary, they can be claimed.

Withholding salaries

The employee has the right to receive payment for the work done. However, if additional investment is required new project, you can refrain from paying for a month or two, having previously agreed with the staff. This method carries a lot of risk, as it increases the debt of the company and provokes workers to strike.

Factoring

The ability to defer payments to the supplier firm by promising to pay everything with interest later.

Sale of assets

An asset is any physical or intangible resource which has its price. If the enterprise or its participants have unused assets, such as land or a warehouse, then they can be sold, and the money raised can be invested in a new, promising project.

Reserve profit

Money that is set aside in reserve, in case of unforeseen expenses or to eliminate the consequences of force majeure and natural disasters.

Reallocation of funds

It will help out if the organization is simultaneously engaged in several directions. It is necessary to determine the most productive one and transfer finances to it from the rest, less effective ones.

Internal financing is preferable, since it does not imply outside interference with subsequent partial or even complete loss of basic control over the activities of the enterprise.

External sources

External sources of financing is the use of funds received from outside to continue the activities of the company.

Depending on the type and duration, external financing can be attracted (from investors and the state) and borrowed (credit firms, individuals and legal entities).

Examples of external funding sources:

• loans,
• leasing,
• overdraft,
• bonds,
• trade loans,
• equity financing,
• merger with another organization
• sale of shares,
• government sponsorship.

Types of external sources of business financing

Loans

A loan is the most common way to get money for development, because you can not only get it quickly, but also choose the most suitable program. In addition, lending is available to most business owners.

There are two main types of loans:

• commercial (provided by the supplier in the form of a deferred payment),
• financial (actual cash loan from financial institutions).

The loan is issued against the working capital or property of the company. Its amount cannot exceed 1 billion rubles, which the company is obliged to return within 3 years.

Leasing

Leasing is considered one of the types of lending. It differs from a regular loan in that an organization can rent machinery or equipment and, carrying out its activities with their help, gradually pay the full amount to the rightful owner. In other words, it's a full installment plan.

On leasing it is possible to rent:

• the whole enterprise
• piece of land,
• building,
• transport,
• technique,
• the property.

As a rule, leasing companies go to a meeting and provide the most favorable conditions to the borrower: they do not require collateral, do not charge interest, and individually draw up a schedule for accepting payments.

Leasing is much faster than a loan due to the lack of the need to provide a large number of documents.

Overdraft

An overdraft is a form of lending by a bank when the main account of an enterprise is linked to a credit account. The maximum amount is equal to 50% of the monthly cash turnover of the company itself.

Thus, the bank becomes an invisible financial partner, which is always aware of the commercial situation: if an organization needs investments for any needs, funds from the bank are automatically credited to its account. However, if by the end of the agreed period the issued money is not returned to the banking institution, interest will be charged.

Bonds

Under bonds, a loan with an interest rate is assumed, which is issued by the investor.

By time, there can be long-term (from 7 years), medium-term (up to 7 years) and short-term (up to 2 years) bonds.

There are two types of bonds:

• coupon (the loan is paid with an equal percentage breakdown for 2, 3 or 4 times during the year),
• discount (the loan is repaid several times during the year, but the interest rate may vary from time to time).

Trade loans

This method of external financing is suitable if the enterprises cooperating with each other agree to receive payment in kind, goods or services, i.e. exchange product.

Leasing as a form of external financing

Equity financing

Such a source is involvement in the founders of a new member, investor, which, by investing in authorized capital, expand or stabilize the financial capabilities of the company.

merger

If necessary, you can find another company with the same funding problems and merge firms. With economies of scale, partner organizations can find a better source. How? To take the same loan, the company must be licensed, and the larger it is, the more likely it is that the procedure for obtaining a license will be successful.

Sale of shares

Selling even a small amount of shares of the company, you can significantly replenish the budget. There is also a chance that large capitalists who are ready to invest in production will be interested in the company. But you need to be ready to share control: the greater the flow of investments from outside, the greater the share of the share will need to be shared.

State sponsorship

A separate type of external financing. Unlike a bank loan, government sponsorship involves a free and irrevocable loan of money. Nevertheless, it is not so easy to get it, because you need to meet one important criterion - it is in the sphere of interests of state bodies.

Public funding is of several types:

• capital investments (if on a permanent basis, then the state receives a controlling stake),
• subsidies (partial sponsorship),
• orders (the state orders and buys products, providing the company with a 100% sale of goods).

External financing is associated with high risks, and it is better to resort to it when you cannot cope with the crisis in the company on your own.

Pros and cons of internal and external funding sources

Source	pros	Minuses
Interior	– ease of raising funds, – no need to ask for permission to spend, – no need to pay interest rates, – maintaining control over activities;	- a limited amount of finance, - Expansion restrictions.
External	– unlimited financial flow, – the possibility of changing equipment, - increase in turnover and, accordingly, profit;	– high risk of bankruptcy, - the need to pay interest rates, - the need to go through bureaucratic delays.

How to choose a funding source

From right choice The source of funding depends on the efficiency and profit of the entire organization as a whole. First of all, a businessman should check his actions with the following list:

1. Give precise answers to the following questions: what is the funding for? how much money will be needed? When will the company be able to return them?
2. Decide on a list of potential sources of support.
3. Starting with the cheapest and ending with the most expensive, make a hierarchy.
4. Calculate the costs and payback of the business idea for which the source is being sought.
5. Pick up the most best option financing.

It is possible to understand to what extent the choice of funding source was justified by results of work, over time: if the productivity and turnover of the organization increased, then everything was done correctly.