Long-term financing means abandonment of funds today in
the benefit of making a profit in the future. The investment decision should
to be estimated according to whether it will yield a profit equal to or greater than
it is necessary for investors. In addition to assessing the potential profit, it is necessary to
take into account the financial condition of the subject and his ability to normally
to operate during the entire period of the investment.
The balance equation uniquely determines the relationship between the assets of the subject and the
sources of these assets. As the subject develops, there is a need for
in additional assets that need to be funded by some
additional capital.
Capital structure allows to classify all sources
financings:
1-equity capital;
2-other sources (raised funds).
Assets that allow you to earn profit for a long period
time, usually financed by long-term attracted
capital’s. This option is preferable because the funding
short-term sources, there is no full confidence that the deadline
repayment of the loan from profit will be able to extract enough funds for it
redemptions.
Sources of long-term financing
Long-term sources of funding are divided into internal and external resources. Domestic long-term sources of funding:
– unallotted profit,
– accumulated depreciation,
– funds received from the budget on an irrevocable basis for targeted programs,
– insurance indemnity.
However, the use of internal funds for long-term financing is possible only in very large companies, financial and industrial groups, which have the necessary amount of temporarily available own funds.
External long-term sources of funding:
– bank loan;
– non-Bank instruments, when the necessary funds of the company are received by placement of bonds and shares;
– funds provided from the budget on a returnable basis;
– funds received from other legal entities .
Credit broker-a participant of the financial market, which acts as an intermediary between banks and borrowers in the process of lending to individuals and legal entities.
In the process of work, credit brokers interact with many financial institutions and companies: banks, insurance, valuation companies, real estate agencies, car dealerships, etc.
The range of services provided by credit brokers includes: selection of the optimal credit scheme, full support of clients ‘ projects, negotiations with creditors.
On the basis of individual agreements with banks and financial institutions, brokers can offer their clients the most favorable conditions at rates lower than Bank ones.
Taking into account the accumulated experience, our company is ready to offer our services in this direction.