The main sources of investment financing

In connection with the transition of the economy to marketconditions, more attention was paid to investments. They represent property in the form of shares or shares, securities or money, technology or machinery and equipment, licenses or credits that are invested in an enterprise to make a profit and achieve certain social progress. In other words, financing of investment projects is a long-term investment of money, property and intellectual capital. They are called upon to implement various programs in various sectors of the national economy of the country.

The current legislative acts directly point to the sources of investment financing. They include:

- own reserves of the enterprise;

- on-farm resources of investors;

- money savings of legal entities and individuals;

- compensation received by the enterprise for insured events;

- borrowed and attracted funds of the investor;

- financial capital received as a result of the centralization of business associations;

- State appropriations;

- investments from abroad.

The main sources of investment financing,which are drawn from their own reserves - this is profit and amortization fund. The income of the enterprise is part of the cash revenue. It is calculated by subtracting from the amount obtained from the sale of finished goods the amount of expenses incurred in its manufacture. After making all payments and taxes, the company has a net profit. A certain part of the enterprise can use for capital investments of both social and industrial nature. The income that will be the source of investment is part of the accumulation fund. Investments can also be made from another similar reserve created at the enterprise.

Own funding sources includedalso amortization fund. This is a fairly large investment reserve, the occurrence and increase of which is made monthly due to the amount of depreciation of the main production capacities. Free financial resources arise from the inclusion of depreciation charges in the cost of products. This reserve can be used to expand the company's non-current assets.

The securities served by bonds andpromissory notes, as well as savings certificates and shares are also sources of investment financing. The turnover of this monetary equivalent is one of the sectors of the financial market. It significantly accelerates the likelihood of investing free funds of individuals and legal entities in the commercial and social sphere of the country.

Credits as sources of investment financingby their economic essence express the relations that arise in connection with the movement of the money supply on the principle of reimbursement and recovery. The main component that regulates these links is the loan interest. Based on practical examples, the attraction of this type of investment occurs in those business sectors where they have the fastest possible effect in the form of making a profit.

A very promising method of investingis leasing, which is divided into operational and financial. The structure of operations of the first type includes relationships based on short-term and long-term lease. Standard equipment in this case can repeatedly go from one customer to another. Relations arising from financial leasing involve firmly established rental payments, which is a sufficient condition for achieving total depreciation of production equipment that provides a fixed income.