Sources of financing investment activities are financial resources that are used as investment destination resources . The structure of ensuring the investment process from the point of view of financing consists of the methods of the considered type of activity. Sources and methods of financing investments consist in the availability of individual financial resources and reserves of the investor for on-farm use, as well as borrowed funds that the investor has or the funds transferred to him, further funds from extra-budgetary funds and funds that are transferred from the federal budget. The funds of foreign investors cannot be ignored either.
It should be noted that the sources of financing investment activity have a certain classification, thus, they have both centralized and extrabudgetary nature. The first sources of financing activities of an investment nature include federal budget funds, in addition, the finances of entities and local budgets. All that concerns the rest is the second type of sources under consideration. Based on this, decentralized funds include individual funds of enterprises, borrowed funds on the basis of loan agreements, foreign investments and developers acting individually. Own sources of financing include reserves for internal purposes and profit, in addition, deductions from depreciation.
In addition to such a thing as sources of financing investment activity, there are investment methods. These include: state, credit, mixed, and self-financing. Behind the names discussed above are real-world market entities. These are stock exchanges, banks of commercial property, budgets of three levels and enterprises. Recipients of investments from the state are enterprises that are owned by the state, as well as organizations that participate in the implementation of state programs. Fundraising for public purposes is inherent in the fundamental principles on which the whole process is built. This is obtaining a result with a minimum of costs, the nature of the intended use of state resources, the provision of funds to builders and organizations operating on the basis of a contract. It should be noted that the funds provided by the state are provided in case the project of funded sense will bring greater efficiency. Sources of financing investment activities also imply self-financing of investments, where the most important are individual sources of financing. The main source is profit and depreciation.
Leasing as a source of financing investments is the essence of financing the organization’s investment activities. A legal entity that carries out this type of activity, that is, transfers property by agreement, can be classified as a subject of leasing. This side is called the lessor. Accordingly, the second party is the recipient of the property under the contract. Those who sell leased property include organizations that manufacture equipment and machinery.
All leasing operations are divided into two main groups: operational and financial leasing. The first type of leasing includes the fact that the lease term should not provide for a full payback. The landlord does not cover expenses from lease payments of one tenant. Financial leasing is an operation that has a full payback. Lease payments reimburse costs and provide fixed income for the lessor. The main advantage of using the leasing form provides a good opportunity for enterprises to buy the necessary equipment without major capital costs of a one-time nature.