Seyitmyradova G., Allakulyeva J., Atayev G.
UNDERSTANDING OF BUSINESS'S INVESTMENT BUSINESS AND PROCESS OF CREATING INVESTMENT PLAN *
Аннотация:
article provides a brief overview of the business investment process and how to create an investment plan. It also talks about Internal investment sources and cases where the Enterprise's internal reserves cannot fully satisfy the demand for investment.
Ключевые слова:
economics, management, business economics, investment business, productive investments, competitiveness
The essence of the investment activity is, on the one hand, to form a set of measures for attracting and aggregating investment funds for different periods, and on the other hand, to optimize investment programs and investment activities in order to ensure the economic development of the enterprise.An investment program is a plan for the implementation of all investment projects in the enterprise. An investment project is defined as the reasons for the economic expediency, volume and timing of the investment, as well as the description of the actions (investment plan) and their implementation. The content of the investment program is determined by the investment policy of the enterprise, which depends on the strategy of the enterprise in the considered period.The company's investment policy includes the size and structure of capital required to implement the investment projects that make up this program.The company can obtain the necessary investment funds by using internal and external resources. Internal investment sources include: - reserve fund of the enterprise, - capacity building fund, - profit retained by the enterprise, - dividends aimed at the development of the enterprise by the decision of the general meeting of shareholders, etc.In cases where the internal reserves of the enterprise cannot fully satisfy the demand for investment, there is a need to attract external funds from other places. In order to attract funds of the enterprise, the investor, who sells a part of the stock portfolio or carries out a new issue of shares, buys the shares of the enterprise and thus finances its operation, acquires the right of ownership to a part of the capital of the firm. Funds drawn in this manner are equity funds only to a certain extentCorrespondingly, financial debt obligations arise in the enterprise. In this case, since the financing is provided by creditors who are not the owners of the business, such capital is called borrowed capital. Depending on the duration of the loan, the loan funds are divided into long-term and short-term fundsLoans with a maturity of up to one year are considered short-term loans, but in conditions of high depreciation, this limit is reduced to 6-9 months. As experience shows, most enterprises prefer this scheme: the more stable part of fixed capital and working capital (reserve fund, etc.) is financed by long-term loans, and the rest by short-term loans.Along with the traditional type of lending, in recent years, types of lending that are not related to direct receipt of funds by the borrower company, such as leasing, factoring, commercial and mortgage loans, have also developed. Western financial markets have a long history of these types of lending, but for our conditions this is new.In factoring, a specialized firm (factor) buys the right to collect debts from a customer and pays their customers' claims against their debtors in installments, that is, repays 70% to 90% of the debt before the debtor is due. The rest of the debt is returned to the customer after the debtor has paid off the debt in full, minus interest. As a result, the client of the factoring firm gets the opportunity to repay the loan quickly, for which he pays a certain percentage.By turning to factoring services, businesses reduce their accounts receivable and increase their financial stability and liquidity. Table 10 shows the comparative advantages and disadvantages of traditional forms of lending and factoringTrade credit is typically used by one business to purchase goods from another business or to build up inventory. Commercial credit of the enterprise is a postponement of the payment period for the purchased goods, for which compensation payments are paid to the seller (the longer the loan period, the greater the flexibility of this type of financing. For example, wholesale companies have a 10% discount when the payment of goods is made after 2 weeks, They may offer a 5% discount if paid after 1 month, full price if paid after 2 months, and a 5% surcharge if paid after 3 months).
Номер журнала Вестник науки №5 (74) том 3
Ссылка для цитирования:
Seyitmyradova G., Allakulyeva J., Atayev G. UNDERSTANDING OF BUSINESS'S INVESTMENT BUSINESS AND PROCESS OF CREATING INVESTMENT PLAN // Вестник науки №5 (74) том 3. С. 34 - 36. 2024 г. ISSN 2712-8849 // Электронный ресурс: https://www.вестник-науки.рф/article/14508 (дата обращения: 08.12.2024 г.)
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