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
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