In connection with the transition of the economy to market conditions, more attention has been paid to investments. They represent property in the form of shares or shares, securities or cash, technology or machinery and equipment, licenses or loans that are invested in an enterprise for profit and 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.
Current legislation directly indicates the sources of financing investments. These include:
- own reserves of the enterprise;
- on-farm resources of investors;
- cash savings of legal entities and individuals;
- Compensation received by the company for insured events;
- borrowed and attracted funds of the investor;
- financial capital resulting from the centralization of business associations;
- state appropriations;
- investments from abroad.
The main sources of financing investments, which are scooped from own reserves, are profit and depreciation fund. The company's income is part of cash revenue. It is calculated by subtracting from the amount obtained from the sale of finished products the amount of expenses incurred in its manufacture. After all payments and taxes have been paid, the company has a net profit. An enterprise can use a certain part of it for capital investments of both social and industrial nature. The income that will be the source of investments is part of the accumulation fund. Investing can also be carried out from another reserve similar in purpose, created at the enterprise.
A depreciation fund is also included in own sources of financing. This is a fairly large investment reserve, the occurrence and increase of which is made monthly due to the depreciation of the main production capacities. Free financial resources arise from the inclusion of depreciation deductions in the cost of production. This reserve can be used to expand non-current assets of the enterprise.
Securities, which are bonds and bills, as well as savings certificates and shares, are also sources of financing investments. The turnover of this cash equivalent is one of the sectors of the financial market. It significantly accelerates the likelihood of investing free cash of individuals and legal entities in the commercial and social sphere of the country.
Loans as sources of financing investments in their economic essence express the relations that arise in connection with the movement of money supply on the basis of retribution and repayment. The main component that governs these relationships is loan interest. Based on practical examples, the attraction of this kind of investment occurs in those sectors of the business where the maximum effect in the form of profit is observed from them.
A very promising investment method is 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 leases. Standard equipment in this case can repeatedly pass from one client to another. Relations arising from financial leasing provide for firmly established lease payments, which is a sufficient condition for achieving full depreciation of production equipment that provides a fixed income.