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• Introduction
• 2. Assessment of the enterprise’s credit policy using the example of OAO Neft-Info
• 2.1 Characteristics of the activities of the enterprise OJSC "Neft-Info"
• 2.2 Assessment of the formation and effectiveness of the credit policy of OJSC Neft-Info
• 2.3 Analysis of the creditworthiness of clients and counterparties of OAO Neft-Info
• 3. Ways to improve the credit policy of the enterprise OJSC "Neft-Info"
• 3.1 Credit policy of OJSC Neft-Info as the basis for managing receivables of the enterprise
• Conclusions and offers
• List of used literature

Introduction

At present, the role of borrowed capital of an enterprise is increasingly increasing, which ensures the development of the economic activities of enterprises, promotes their development, and increases the volume of production of products, works, and services.

Borrowed capital represents part of the value of the organization's property acquired as an obligation to return money or valuables equivalent to the value of such property to the supplier, bank, or other lender. As part of borrowed capital, a distinction is made between short-term and long-term borrowed funds, accounts payable (raised capital).

Almost all enterprises in the process of financial and economic activities use borrowed funds in one form or another.

Enterprises and organizations have various opportunities to attract borrowed capital: loans from banks (or other credit institutions that have the appropriate license), loans from other enterprises and organizations, including in the form of bills, placement (issue) of bonds or other debt obligations. The borrowed funds of an enterprise (liabilities to third parties) are placed at the disposal of the organization for a certain period, after which they must be returned to their owner with or without interest.

The importance of loans and borrowings as an additional source of financing for commercial activities is especially evident at the stage of formation of an enterprise that uses borrowed resources when making long-term investments aimed at creating new property (with capital investments). At this stage, long-term bank loans are of great importance.

It is difficult to imagine a modern, successfully developing company that would not use credit resources. The need to attract borrowed funds may be due to a temporary shortage of the most liquid assets of the enterprise necessary for the acquisition of raw materials, supplies, goods for sale and fixed production assets. All this determined the relevance of the chosen topic.

The purpose of this research is to study the theoretical foundations and methodological aspects of improving the credit policy of an enterprise.

In accordance with the goal, the following tasks are set:

consider the theoretical basis for the formation of credit policy of enterprises;

assess the formation and effectiveness of the credit policy of OJSC Neft-Info;

analyze the creditworthiness of clients and counterparties of OAO Neft-Info;

identify the features of the credit policy of OAO Neft-Info as the basis for managing receivables;

present an analysis of the formation of the credit rating of clients of OAO Neft-Info.

The object of the study is OJSC "Neft-Info".

The subject of the study is the economic relations that arise in the process of implementing an enterprise’s lending strategy and its improvement.

The methodological basis of this work was made up of scientific works: Kovaleva V.V., Selezneva N.N., Sheremet A.D., Saifulin R.S., Blanca I.A. and others, as well as various regulatory sources.

When conducting the study, such economic methods as analysis, a logical approach to assessing economic phenomena, and comparison of the studied indicators were used.

credit policy accounts receivable

The practical significance of the work lies in the formation of ways to improve the credit policy of the enterprise OAO Neft-Info.

The structure of the thesis consists of an introduction, three chapters, conclusions and proposals, a list of references and applications.

The first chapter examines the theoretical foundations for the formation of enterprise credit policy. In particular, the concept and criteria for choosing an enterprise’s credit policy, the procedure and stages of developing an enterprise’s credit policy, as well as the tools of an enterprise’s credit policy are presented.

The second chapter presents an assessment of the enterprise's credit policy using the example of OAO Neft-Info. Within the framework of this section, the author presents a description of the activities of the enterprise OAO Neft-Info, assessed the formation and effectiveness of the credit policy of OAO Neft-Info, and also analyzed the creditworthiness of clients and counterparties of OAO Neft-Info.

The final, third chapter outlines ways to improve the credit policy of the OAO Neft-Info enterprise.

1. Theoretical and methodological foundations for the formation of credit policy of enterprises

1.1 Concept and criteria for choosing an enterprise’s credit policy

Competition as an integral element of market relations presupposes that the operating conditions of any subject of market relations are such that he himself has to solve the problem of raising funds to resume the normal process of functioning. In this case, the subject of market relations becomes a borrower and turns to the other party - the lender. Due to the fact that almost every enterprise is forced to turn to creditors for help, each of them develops its own policy of relations with creditors, that is, a credit policy. The subject of the relationship between lenders and borrowers is credit.

Credit is in many ways a condition and prerequisite for the development of a modern economy, an integral element of economic growth. It is used by both large enterprises and associations, and small manufacturing, agricultural and trading enterprises. Credit is a form of movement of loan capital, that is, monetary capital provided as a loan.

Let's give the concept of lending at an enterprise from different points of view. A.I. Ivanov believes that lending is the process of providing an enterprise with sources of financing on a paid, urgent and repayable basis. A.R. Bagorsky argues that lending to enterprises is a set of forms and methods, principles and conditions for financial support for simple and expanded reproduction in an enterprise. Based on these definitions, we believe that lending to an enterprise is the process of providing an enterprise with the necessary funds to carry out its activities by withdrawing funds from other participants in market relations on a reimbursable basis.

The essence of the enterprise lending process is most clearly expressed in the functions that the loan performs as the subject of relationships in the lending process.

By using the functions of credit, economic entities and society as a whole achieve production efficiency, acceleration of circulation and income growth. Because of this, clarifying the functions of credit is of great practical importance to ensure conditions under which they would manifest themselves most effectively.

Three main functions of credit should be noted:

1. The distribution function of credit is revealed both during the accumulation of funds and during their placement.

2. Emission function - the creation of credit means of circulation and replacement of cash.

3. The control function is the exercise of control over the performance of economic entities.

The objects of lending to legal entities may be goods and services provided (supplied) to the borrower under certain contracts; working capital in general; financing of production costs; wages for the organization's employees.

The subjects of lending at an enterprise are the owners, as well as creditors. The subject of the lending process is the economic relations arising as a result of the provision of funds on credit. An important component of the organization's short-term financial policy is the working capital management policy, which, in turn, includes the enterprise's credit policy (Figure 1.1). As you can see, the enterprise’s credit policy is part of the working capital financing policy.

Rice.1.1 The place of an enterprise's credit policy in the financial management of an organization

The credit policy of an enterprise is a policy for raising funds to finance current activities and placing temporarily available funds; its main goals are:

increasing return on equity through the use of borrowed funds and the placement of own temporarily available funds;

minimizing the cost of borrowed funds;

reduction of credit risks (borrower risk and lender risk).

The most pressing problem for enterprises is the development of a short-term borrowing policy to ensure flexible financing of current activities.

In the economic theory of the company, the question of the relationship between its own and borrowed sources is considered, first of all, from the point of view of long-term borrowings. However, if the company has set a course for the constant use of borrowed funds in its turnover, the main part of the reasoning will be valid for short-term borrowings. As is known, raising borrowed funds on the principles of repayment, urgency and payment has its advantages over increasing one’s own funds by issuing additional shares.

Large borrowings increase the risk of loss of liquidity by the borrower; payment of interest on a loan is a priority payment compared to the payment of dividends and increases the fixed costs of the enterprise, and accordingly, the risk of the borrower increases.

With short-term borrowings, if they are of a one-time, irregular nature, the possible negative impact on the financial condition is limited to a short period, the foreseeable future.

In the process of managing working capital using borrowed sources, the financial manager needs to solve many different tasks that can be ranked according to the degree of specificity and time. Conventionally, these tasks can be divided into political, strategic and tactical (Table 1.1).

Table 1.1

Three-level model of enterprise lending management

Policy	Developing a general line of behavior when using borrowed funds: determining the amount of debt capital participation and the acceptable degree of dependence on creditors; choosing a working capital management model.
Strategy	Creating conditions for flexible current financing: determination of the circle of strategic creditors; determination of forms of borrowing, taking into account the characteristics of the production and financial cycle of the enterprise, the price of borrowed funds and the tax aspect of borrowing.
	Promptly ensuring flexibility of current financing: increasing or decreasing the volume of borrowings in accordance with the changing needs of the enterprise; switching to alternative sources of borrowing as the need arises; control over timely repayment of debt and interest payments; maintaining a balance between claims and obligations in terms of amounts and terms (liquidity); choice of forms of debt restructuring.

In our opinion, such ranking by levels of financial management in the direction from the general to the specific, from long-term tasks to operational ones, helps to improve the organization of financial management, allows you to more clearly see the guidelines for activity, streamline the methods and tools of credit policy.

The general line of behavior of a company in relation to attracting borrowed capital, that is, in essence, the working capital management model, is determined by its borrowing policy and depends on a number of objective reasons:

scale of activity: lenders treat large and small borrowers differently, small businesses are less stable, large enterprises are more inert, but they have more significant equity capital;

stage of the company's life cycle: as a rule, at the formation stage it is difficult to find creditors, with an established stable business it is easier;

industry specific features of the cost structure that determine the strength of operating leverage and the risk of the borrower;

the duration of the production and financial cycle and the speed of capital turnover: the most attractive for creditors are enterprises with rapid capital turnover and a uniform flow of revenue;

seasonality, discretionary expenses (one-time or constantly carried out).

The choice of a working capital management model, that is, the degree of participation of credit sources in financing the current activities of the company, also depends on the type and form of lending at the enterprise.

When developing a borrowing policy, a financial manager can choose alternative forms of credit financing for the current activities of an enterprise that are most consistent with the characteristics of its production and commercial cycle.

The following forms of lending to an enterprise are distinguished: financial loans received from banking and non-banking financial institutions, commercial loans from suppliers, accounts payable of the enterprise, debt on the issue of debt securities, etc.

Let's take a closer look at the banking form of lending to an enterprise. A bank loan is the main form of credit in which funds are provided for temporary use by banks.

1. Blank loan. As a rule, it is provided by a commercial bank that provides settlement and cash services to the enterprise. Although formally it is unsecured, it is actually secured by the size of the enterprise's receivables, as well as the amount of its own monetary and other assets, information about which the bank can obtain on the basis of the latest balance sheet. Options for providing an enterprise with a blank loan are a short-term loan for temporary needs and a seasonal loan.

2. Current credit. This type of loan is usually provided by a bank against collateral, but this requirement is not mandatory. When providing this loan, the bank opens a current account for the company, which records both its credit and settlement transactions. In European lending practice (Great Britain and some other countries), a variation of this form of bank loan is an “overdraft”.

3. Opening a line of credit. Since the need for a short-term bank loan cannot always be provided for in advance with reference to specific terms of its use, an agreement on it can be drawn up with the bank in advance in the form of opening a credit line. This form of loan is an agreement between an enterprise and a bank on the use of a loan for a specified period and under certain conditions, the maximum amount of which is agreed upon in advance. Typically, a line of credit is opened for a period of up to one year.

4. Pawnshop loan. Such a loan can be obtained by an enterprise using highly liquid assets as collateral. The size of the loan in this case corresponds to a certain part (but not all) of the value of the assets pledged. This form of bank loan also refers to short-term lending.

5. Mortgage loan. This type of loan is usually provided by banks that specialize in issuing long-term loans secured by non-current assets in tangible form or the entire property complex of an enterprise. At the same time, the property pledged to the bank continues to be used by the enterprise. With the cessation of issuing unsecured long-term loans to enterprises, mortgage loans become the main form of long-term lending.

6. Rollover loan. It is a form of long-term bank loan with a periodically revised interest rate. In the European practice of providing rollover loans, the interest rate is reviewed once every quarter or half a year.

7. Consortial loan. The bank's credit policy or high level of risk sometimes does not allow it to fully satisfy the high need of the client enterprise for credit. In this case, the bank servicing the enterprise can attract other banks to lend. After concluding a loan agreement with an enterprise, the bank accumulates funds from other banks and transfers them to the borrower, distributing interest accordingly. For arranging a consortium loan, the bank receives a certain commission.

8. Other forms of credit. These forms include financial leasing, a loan against the assignment of debtors' obligations (bank accounting of bills, factoring, forfaiting, oval credit (in the form of a guarantee and payment by the bank of the obligations of client enterprises) and others.

The variety of forms and conditions for attracting a bank loan determine the need for effective management of this process in enterprises with a high volume of need for borrowed capital. In this case, the goals and policy of attracting borrowed funds are specified by the enterprise, taking into account the specifics of bank lending.

1.2 The procedure and stages of developing an enterprise’s credit policy

Having a well-thought-out credit policy is the key to the success and stability of an enterprise that provides goods and services on deferred payment terms. A competently conducted credit policy helps to raise the payment discipline of clients to a qualitatively new level, significantly improve the quality of cash flow and, as a result, increase the performance indicators of the enterprise.

The most important result is an improvement in the quality of cash flow. This is due to the fact that debtors begin to treat their monetary obligations more responsibly, the volume of timely payments received increases and the terms and amounts of payments received late decrease. Turnover accelerates, profits grow, and the company's position in the market becomes more stable.

In addition, the company receives the following additional benefits:

accounts receivable are under control, it is possible to predict the amounts and timing of receipt of funds;

staff have clearly defined procedures for interacting with clients and collecting receivables;

planning becomes more effective, as the accuracy of forecasting the receipt and expenditure of funds and the need to attract borrowed funds, in particular loans, increases.

Credit policy should take into account:

strategic goals of the enterprise - increasing sales volume, maximizing profit from each unit of goods with the existing sales volume, accelerating asset turnover;

the current market situation - whether the provision of loans is a common practice for competing enterprises;

the competitive position of the enterprise in the market - whether the enterprise is a monopolist or is in search of new effective means in the fight against competitors;

features of distribution channels for goods and services - whether the enterprise is focused on one-time transactions, working with retail enterprises or with a limited number of distributors who purchase regularly.

Let us analyze the stages of developing a credit policy. First, it is necessary to determine the conditions for providing trade credit by type or segment of buyers. For some companies, the formation of a so-called price matrix - a document regulating the level of prices for a product or service depending on the timing of its payment and the fulfillment of other conditions. Secondly, it is necessary to calculate the maximum period for providing a trade loan.

Next, it is necessary to develop regulations for the implementation of credit policy. Credit policy is designed to establish the rules of the game in the following areas:

to whom to provide a loan - standards for assessing buyers;

on what conditions - the dependence of the cost of the goods on sales volumes, payment terms, and the fulfillment of other tasks assigned to the buyer;

how much - determining the credit limit;

how to punish violators - what is the procedure for repaying overdue receivables.

An important area is credit selection of clients. Providing commercial loans to everyone will not lead to an increase in profits, but, on the contrary, to a reduction in them - due to an increase in bad receivables with their subsequent write-off and a shortage of funds for settlements with suppliers - due to delays in payment terms. Therefore, determining who to provide a loan to depends on the risks of non-repayment or delays in payment terms. Classification of buyers by risk groups is a kind of “foundation” of credit policy.

One of the most common tools for solving this problem in relation to buyers with whom the company already has experience working is the method of assessing credit history. It is based on ranking buyers according to a number of indicators and establishing criteria for making a decision on granting a loan.

Indicators for assessing credit history can be:

type of buyer - distributor, wholesale intermediary, retail chain, corporate client, one-time buyer, etc.;

period of work with the buyer - year, half-year, quarter;

period of existence of the purchasing enterprise - the number of years from the date of its registration;

payment discipline - whether the buyer has receivables “older” than a certain period, for example, more than 3 months or the amount of overdue receivables;

the average monthly volume of purchases of the buyer (for the last year) or the share of purchases of the buyer in the total sales volume of the enterprise;

other criteria, for example, the importance of the buyer, location, belonging to a promising sales channel or market.

For each indicator, a significance weight is determined. The total sum of all significance weights is equal to one. As a rule, the weights of the significance of indicators are determined based on the expert assessment of the manager and/or a group of specialists.

All debtors are assessed for each indicator and assigned a score (from 1 to 100). For example, for debtors who have been cooperating with the supplier for more than five years, the score for this indicator will be one hundred points, from three to four years - eighty points, and so on. To standardize point estimates, it is recommended to compile a summary table of indicator estimates in points.

Approaches to determining the timing of a loan may differ fundamentally. First, the timing of the loan may be dictated by the market. Secondly, the company may have “historically established” loan terms. And thirdly, let’s assume that the company does not have strict restrictions when setting loan terms or is just engaged in revising its credit policy, in which the “starting point” will be precisely the loan term. In this situation there will also be several approaches:

based on comparison with the actual and/or planned Accounts Payable Turnover Period (or operating cycle);

based on a comparison of marginal income with the cost of borrowed funds.

It is also important to take into account the fact that the provision of credit to intermediaries is intended to provide an opportunity for distribution channel participants to sell more of the supplier’s products, without being limited by the amount of their own available funds. The loan should not act as a free credit resource for the buyer.

The duration of the loan should take into account the period of the buyer's operating cycle, and, for example, the deferred payment for an outlet on the open market should be significantly less than the duration of the product loan for a distributor. When determining the credit limit, you can be guided by the planned sales volume for the period. This implies that the loan term is determined in advance.

You can take as a starting point the sales volume (accounts receivable volume) of the previous period and the percentage of growth that the company plans to achieve in the current period, or use any other approach that has a logical basis. The content of each company's commercial policy will vary greatly depending on the company's goals, strategy, market, and resources.

Once a company has decided on a commercial policy, all that remains is to provide an assessment of its effectiveness and a mechanism for implementation.

Monitoring the status of accounts receivable includes:

formation of a accounts receivable budget;

formation of a register of “aging” accounts receivable;

monitoring the dynamics of key indicators characterizing accounts receivable.

The accounts receivable budget is formed in the context of counterparties-buyers and/or business areas. Drawing up such a budget allows you to predict the level of accounts receivable for the future period and adjust it in time.

An important point in managing accounts receivable is the formation of a database of information about accounts receivable and the ability to analyze it.

The accounts receivable aging register is formed by debtors and by business areas and allows you to evaluate accounts receivable by various “age groups” and determine the level and composition of “bad” and/or overdue debt.

As with other types of current assets, accounts receivable are usually assessed by turnover.

In order to determine the turnover ratio and the turnover period of “live” receivables, it is necessary to subtract the amounts of doubtful and bad debts from the amounts of receivables (for example, debts over 120 days).

Increasing the collection period of accounts receivable increases the likelihood of rising bad debts, and increasing the volume of bad debts reduces profits. An increase in the repayment period for receivables leads to a cash shortage and increases the costs associated with raising additional funds to finance current operating activities.

To assess the effectiveness of working with debtors, indicators such as the weighted average time of the overdue period and the lending period can be used in comparison with the previous period. When determining the weighted average time overdue, doubtful and bad debts are excluded from consideration to ensure a fair comparison. Obviously, an increase in the weighted average time of delay indicates a decrease in the efficiency of working with debtors, and a decrease indicates the opposite.

The execution of the credit policy should be governed by procedures and instructions that describe:

the actual regulations for the interaction of departments involved in the receivables management process;

actions of the personnel of these units and their powers.

This division makes it possible to regulate the relationships between departments and the actions of personnel by targeting the relevant procedures and instructions directly to the performer.

One of the forms of regulation of the receivables management procedure can be the description and regulation in the form of a business process for monitoring the return of customer debts. Below is an example of a receivables collection process map:

Most accounts receivable management regulations state that if payment is not made on time, the first step should be to find out the reasons why the buyer does not pay.

Knowledge of these circumstances allows you to correctly place emphasis when determining further actions so that in some cases, when the company does not want to lose a client, stop at creating a payment schedule or suspending deliveries in order to smooth out relations in the future.

Among the main factors that determine why buyers do not pay their debts are the following groups.

The first group - economic reasons - are the most relevant in modern conditions. The buyer is conscientious, but is temporarily experiencing a shortage of working capital due to crisis processes in the market.

The second group are reasons of a “political” nature. The debtor has the means, does not refuse to pay, but does not pay on time. A delay in payment may be “normal” for a given company, for example, due to a monopoly position in the market or due to a significant superiority in economic potential, which allows the company to impose its “style” of work. This may also be due to the peculiarity of the financial strategy of the debtor, who prefers to constantly “live on debt” and thereby expand his business.

The third group is force majeure or force majeure. Such factors may include not only natural disasters, accidents and other man-made disasters, but also the intervention of competent authorities.

The fourth group is reasons of an unscrupulous nature. For example, the debtor initially did not intend to pay off. Those companies that, due to the nature of their products, are forced to work with small customers or individuals most often have to deal with debtors of this type. A large debtor may also be struck by the idea of ​​non-payment in the process of developing mutual relations, or he creates it artificially.

It should be noted that bankruptcy cannot be attributed to any one group, since although it arises to a large extent for economic reasons, it can also be caused by the same force majeure circumstances and other non-economic reasons. Bankruptcy can also be of a dishonest nature, which is called fictitious bankruptcy.

Once the reasons have been established, you need to move on to active actions and decide which of the regulatory procedures to focus on. Methods of influencing debtors can most generally be classified as follows:

1. Psychological. The simplest one is constant reminders by phone (fax, mail, etc.) of various emotional tones (depending on the situation). Your debtor needs to know that you are concerned about a late payment. A more complex one is distributing information about payment delays among related suppliers and other interested parties or using various media (this is the most extreme case, accepting the loss of a “notorious” buyer and weighing the cost of posting information and the amount of debt). Many companies understand that image losses are sometimes more expensive than monetary losses. At the same time, psychological influence turns out to be very effective for conscientious debtors.

2. Economic. Economic methods of influence include financial sanctions (fine, penalty, penalty) and collateral relations. If he is a large enough customer, then maybe you should try to "earn" a little less from him today in order to receive additional income in the future.

3. Legal. Claim work, pre-trial correspondence and, finally, filing a claim in court. In the event that your debtor turned out to be dishonest: he was engaged in fictitious business, forgery of documents and other criminal acts (fourth group), then the trial will be resolved in your favor as soon as possible. If the debtor belongs to the first or second group (a “bona fide” defaulter), any legal proceedings can also be quite effective in terms of the return of funds.

Debt collection work is one of the most unpleasant functions that needs to be entrusted to someone. The choice of those responsible for the repayment of overdue, but not yet bad debts for companies has several alternatives:

1. Financial service. Accountants and other financial workers know better than anyone about who owes what, how much and, very importantly, how much time, so there is always a “temptation” to dump all the dirty work on the financiers, who are supposed to also know, and how to repay these debts. At the same time, a financial employee who, as usual, knows the client only “on paper” will treat all debtors equally: all telephone conversations or correspondence of such an employee will not be able to contain differentiated arguments and exhortations. While in one case it would be worth demanding, and in another - only asking, and so on.

2. Legal service. Lawyers understand the rights and responsibilities of themselves and their clients better than others. They can very competently, from a legal point of view, correspond with debtors and present them with the most justified claims. But at the same time, such an important individual approach is again lost.

3. Sales service. These are the people who found the client, negotiated with him and came to some kind of agreement. Commercial workers (managers and sellers) not only know their customers by sight, but have an idea of ​​their character, potential capabilities, their “value,” the history of relations with the counterparty and many other nuances.

At the same time, the seller is the same employee who gave the green light to the formation of debt. Therefore, it is logical if debts are collected not by those who take them into account, but by those who create them.

The financial service takes upon itself only information support, promptly notifying the buyer about upcoming payments, and the sales service about overdue payments.

Legal service - inform the sales service about the rights and obligations that buyers have assumed and which belong to them by law, and if it is impossible to receive payment with little blood, carry out actions related to transferring the case to an arbitration court.

The role of the “first violin” in the return of “live” receivables should belong only to the sales service.

1.3 Instruments of enterprise credit policy

Credit policy instruments represent both templates for assessing potential debtors and regulations or procedures for the operation of the relevant service. Following the three main questions of credit policy, it is possible to identify a number of tools that determine the answers to them.

The answer to the question “to whom to provide a loan” largely depends on the risk of non-repayment of the loan or delay in disposing of the received resources. Therefore, the distribution of buyers into risk groups is one of the main objectives of credit policy. One of the most common tools for solving this problem is the credit scoring method. It is based on ranking buyers according to a number of selected indicators and introducing decision-making criteria for granting a loan. Using this method helps to assess how risky it is to provide a deferred payment to a particular buyer.

Any commercial structure is always limited in financial resources, so the task of efficiently distributing them with minimal risks is most relevant. If the method of assessing credit history allows us to weigh the risks associated with providing loans to individual buyers, then the method of determining the optimal loan term gives an idea of ​​​​the effectiveness of a commercial transaction, answering the question about the conditions for placing a commercial loan.

Enterprises act as creditors to their customers not at all out of goodwill towards them. The main theme of such transactions is attempts to increase sales volumes. Unfortunately, being in a weak competitive position, most industrial enterprises in Russia are more often considering the issue of reducing sales markets if they refuse to accept the tightening demands of customers. In principle, this is just the flip side of the same relationship: usually an increase in the maturity of accounts receivable leads to an increase in sales volumes. Calculation of the optimal policy for loan terms comes down to comparing additional income received as a result of increased sales and costs associated with financing increased accounts receivable.

In order for relations with creditors to maximally correspond to the goals of ensuring the financial stability (security) of the company and increasing its profitability and competitiveness, the company's management needs to develop a clear strategic line regarding the nature of attracting and using loans.

In the theory of financial management, it is customary to distinguish different lending strategies depending on the manager’s attitude to the choice of sources of coverage. There are 4 known models of behavior: ideal, aggressive, conservative, compromise. The choice of one or another financing strategy model comes down to allocating the appropriate share of capital, i.e. long-term sources of financing.

The ideal model is built based on the essence of the categories “current assets” and “short-term liabilities”. The model means that current assets coincide in size with short-term liabilities, i.e. net working capital is zero.

In real life, such a model practically never occurs, because A business always needs a certain amount of cash to maintain current expenses. From a liquidity perspective, this model is the most risky, because An enterprise may be faced with the need to sell part of its fixed assets to cover current accounts payable. The essence of this strategy is that long-term capital is used as a source of covering non-current assets, i.e. numerically coincides with their value.

The aggressive model means that long-term capital serves as a source of covering non-current assets and the minimum that is necessary to carry out business activities. From a liquidity perspective, this model is also risky, because in real life it is impossible to limit yourself to only a minimum of current assets.

Since permanent sources of financing in this case are only sufficient to cover the minimum of current assets. With this model, there is a relatively high current profit (since the costs of maintaining current activities are minimal) and there is a high risk of losses from not receiving possible income when demand for products increases.

The conservative model assumes that part of current assets is covered by long-term liabilities.

The compromise model is considered the most realistic. Current assets are financed from long-term sources.

The variety of problems solved in the process of building a strategy of any of the presented types determines the need to develop a special financial policy in this area for enterprises using a significant amount of borrowed capital.

The enterprise's credit strategy involves the use of various credit policy instruments. Let us describe these tools in more detail.

1. Analysis of the attraction and use of credit (borrowed) funds in the previous period. The purpose of this analysis is to identify the volume, composition and forms of borrowing by an enterprise, as well as to assess the effectiveness of their use.

At the first stage of the analysis, the dynamics of the total volume of borrowings in the period under review is studied; the pace of this dynamics is compared with the growth rate of the amount of own resources, the volume of operating and investment activities, and the total amount of assets of the enterprise.

At the second stage of the analysis, the main forms of attracting borrowed funds are determined, the share of the generated financial loan and internal accounts payable in the total amount of borrowed funds used by the enterprise is analyzed in dynamics.

At the third stage of the analysis, the ratio of the volumes of borrowed funds used by the enterprise by the period of their attraction is determined. For these purposes, an appropriate grouping of the borrowed capital used is carried out according to this criterion, and the dynamics of the ratio of short- and long-term current and non-current assets is studied.

At the fourth stage of the analysis, the composition of specific creditors of the enterprise and the conditions for their provision of various forms of financial and commodity (commercial) loans are studied. These conditions are analyzed from the standpoint of their compliance with the conditions of the financial and commodity markets.

At the fifth stage of the analysis, the efficiency of using borrowed funds in general and their individual forms in the enterprise is studied. For these purposes, indicators of turnover and profitability of borrowed capital are used. The first group of these indicators is compared during the analysis with the average period of equity capital turnover.

The results of the analysis serve as the basis for assessing the feasibility of using borrowed funds at the enterprise in the current volumes and forms.

2. Determining the goals of attracting credit funds in the coming period. These funds are attracted by the enterprise on a strictly targeted basis, which is one of the conditions for their subsequent effective use. The main goals of attracting borrowed funds from an enterprise are:

replenishment of the required volume of the permanent part of current assets. Currently, most enterprises engaged in production activities do not have the opportunity to finance this entire part of current assets using their own capital. Much of this financing is through debt;

ensuring the formation of the variable part of current assets. Whatever model of asset financing the enterprise uses, in all cases the variable part of current assets is partially or fully financed by borrowed funds;

formation of the missing volume of investment resources. The purpose of attracting borrowed funds in this case is the need to accelerate the implementation of individual real projects of the enterprise (new construction, reconstruction, modernization), renewal of fixed assets (financial leasing), etc.

ensuring the social and living needs of its employees. In these cases, borrowed funds are raised to issue loans to their employees for individual housing construction, arrangement of garden plots and other similar purposes.

other temporary needs. The principle of targeted attraction of borrowed funds is also ensured in this case, although such attraction is usually carried out for short periods and in small volumes.

3. Determination of the maximum volume of borrowing funds.

The maximum volume of this attraction is dictated by two main conditions:

marginal effect of financial leverage. Since the volume of own financial resources is formed at the previous stage, the total amount of equity capital used can be determined in advance. In relation to it, the financial leverage ratio (financing ratio) is calculated, at which its effect will be maximum. Taking into account the amount of equity capital in the coming period and the calculated financial leverage ratio, the maximum amount of borrowed funds is calculated to ensure the efficient use of equity capital.

The effect of financial leverage (EFF) is an increase in the profitability of equity capital obtained through the use of a loan, despite the payment of the latter.

This formula opens up wide opportunities for the financial manager to determine the safe amount of borrowed funds, calculate acceptable lending conditions, ease the tax burden for the enterprise, determine the feasibility of acquiring shares of the enterprise with certain values ​​of the differential, leverage and the level of the EFR as a whole.

ensuring sufficient financial stability of the enterprise. It should be assessed not only from the position of the enterprise itself, but also from the position of its possible creditors, which will subsequently ensure a reduction in the cost of raising borrowed funds.

Taking into account these requirements, the enterprise sets a limit on the use of borrowed funds in its business activities.

4. Estimation of the cost of attracting loans from various sources. Such an assessment is carried out in the context of various forms of debt attracted by the enterprise from external and internal sources. The results of such an assessment serve as the basis for the development of management decisions regarding the selection of alternative sources of raising borrowed funds to ensure the satisfaction of the enterprise's needs for borrowed capital.

5. Determining the ratio of the volume of borrowed funds raised on a short-term and long-term basis. Calculation of the need for volumes of short-term and long-term borrowed funds is based on the purposes of their use in the coming period. For a long-term period (over 1 year), borrowed funds are attracted, as a rule, to expand the volume of own fixed assets and form the missing volume of investment funds. For a short-term period, borrowed funds are raised for all other purposes of their use.

The calculation of the required amount of borrowed funds within each period is carried out in the context of individual target areas of their future use. The purpose of these calculations is to establish the timing of the use of borrowed funds to optimize the ratio of long-term and short-term types. In the process of these calculations, the full and average period of use of borrowed funds is determined.

The full life of borrowed funds includes three time periods:

1) useful life is the period of time during which the enterprise directly uses the provided borrowed funds in its business activities;

2) grace period - the period of time from the end of the useful use of borrowed funds until the beginning of debt repayment. It serves as a reserve of time for accumulating the necessary funds;

3) repayment period is the period of time during which full payment of the principal debt and interest on the borrowed funds occurs. This indicator is used in cases where the payment of principal and interest is not carried out simultaneously after the end of the term of use of the funds, but in parts over a certain period of time according to the prescribed schedule.

The calculation of the full term of use of borrowed funds is carried out in the context of the listed elements based on the purposes of their use and the practice established in the financial market of establishing a grace period and repayment period. The average period of use of borrowed funds is the average billing period during which they are used by the enterprise.

It is determined by the formula:

SSz = SPz / 2 + LP + PP / 2, (1.1)

where SSZ is the average period of use of borrowed funds;

SDR - useful life of borrowed funds;

LP - grace period;

PP - maturity date.

The average period of use of borrowed funds is determined for each target area for raising these funds; by the volume of their attraction on a short- and long-term basis; on the amount of borrowed funds raised as a whole. The ratio of borrowed funds raised on a short-term and long-term basis can also be optimized taking into account the cost of their attraction.

6. Determination of forms of attracting credit funds. These forms are differentiated in terms of financial credit; commodity credit; other forms. The choice of forms of raising borrowed funds is carried out based on the goals and specifics of one’s business activities.

7. Determination of the composition of the main creditors. This composition is determined by the forms of borrowing. The main creditors of an enterprise are usually its regular suppliers, with whom long-term commercial relationships have been established, as well as a commercial bank that provides its settlement and cash services.

8. Formation of effective conditions for attracting loans. The most important of these conditions include:

The term of the loan is one of the determining conditions for its attraction. The optimal period for providing a loan is considered to be during which the purpose of attracting it is fully realized (for example, a mortgage loan - for the period of implementation of an investment project; a trade loan - for the period of full sale of purchased goods, etc.).

interest rate for a loan - is characterized by three main parameters: its shape, type and size.

According to the forms used, a distinction is made between the interest rate (for increasing the amount of debt) and the discount rate (for discounting the amount of debt). If these rates are the same, then preference should be given to the interest rate, since in this case the cost of servicing the debt will be lower.

According to the types used, a distinction is made between a fixed interest rate and a floating interest rate. The time during which the interest rate remains unchanged is called the interest period. In conditions of inflation, a fixed rate or a floating rate with a high interest period is preferable for an enterprise. The interest rate for a loan is a determining condition in assessing its value. For a trade credit, it is accepted when assessed in the amount of the seller's price discount for immediate payment for the goods supplied, expressed on an annual basis.

conditions for payment of the interest amount - characterized by the procedure for paying its amount. This procedure boils down to three basic options: payment of the entire amount of interest at the time of granting the loan; payment of the interest amount in equal installments; payment of the entire interest amount at the time of payment of the principal amount. All other things being equal, the third option is preferable.

conditions for repayment of the principal amount are characterized by the stipulated periods for its repayment. These conditions come down to three basic options: partial repayment of the principal amount during the total period of the loan; full repayment of the entire debt amount upon expiration of the loan period; return of the principal or part of the debt with the provision of a grace period after the expiration of the useful life of the loan. All other things being equal, the third option is preferable for the enterprise.

other conditions associated with obtaining a loan - may include the need to insure it, pay an additional commission to the bank, different levels of the loan size in relation to the amount of the mortgage or collateral, etc.

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Enterprise credit policy– this is a set of measures to manage accounts receivable and payable and determine the optimal conditions for providing and receiving commercial loans and loans from lending organizations.

In choosing the optimal level and rational structure of current assets, taking into account the specifics of the activities of each enterprise;

In determining the size and structure of sources of financing of current assets.

Goals of effective credit policy:

1. Increasing product sales volumes in the short and long term to achieve the required profitability.

2. Achieving the required accounts receivable turnover.

3. Limiting the relative growth of overdue receivables.

The type of credit policy of an enterprise characterizes the fundamental approaches to its implementation from the standpoint of the relationship between the levels of profitability and risk of credit activity.

Types of credit policies in relation to product buyers:

1. Conservative(hard) type of credit policy of an enterprise is aimed at minimizing credit risk. By implementing this type of policy, the enterprise strives to obtain high additional profits by expanding the volume of product sales. The implementation mechanism is to reduce the number of buyers of products on credit, minimize the timing of the loan and its size, work on prepayment, and use strict procedures for collection of receivables.

2. Moderate the type of credit policy of an enterprise characterizes the typical conditions for its implementation in accordance with accepted commercial and financial practices and is focused on the average level of credit risk when selling products with deferred payment.

3. Aggressive(soft) type of credit policy of an enterprise, the priority goal of credit activity is maximizing additional profit by expanding the volume of sales of products on credit, regardless of the high level of credit risk. The implementation mechanism is to extend the loan to riskier groups of buyers, increase the loan period and its size, reduce the cost of the loan to the minimum acceptable size, and provide buyers with the opportunity to extend the loan.

In order to manage accounts payable, the structure of the balance sheet liabilities is analyzed and the share of equity and borrowed funds, their ratio is calculated, and the lack of equity funds is determined.

Based on the calculation, the need for borrowed funds is determined. Sometimes it is advisable for an enterprise to take out loans even if its own funds are sufficient, if the effect of attracting and using borrowed funds may be higher than the interest rate. The enterprise's credit policy provides for the choice of a credit institution, the interest rate, and loan repayment terms.

Basic concepts of financial mathematics.

Financial mathematics operates with calculation methods that are very useful in calculating the results of business activities and can take into account three types of equal parameters within a single commercial transaction:

Cost characteristics (amounts of payments, debt obligations, loans, etc.);

Temporary data (dates or terms of payments, duration of grace periods or deferred payments, etc.);

- specific parameters (for example, interest rates, which can also be specified in hidden form).

Methods of financial and economic calculations make it possible to determine:

Interest, interest money and interest rates;

Data for calculating simple and compound interest;

Increase in funds at simple and compound interest rates;

Data for performing valuation of financial payment flows;

Data for planning the repayment of debt, loans, loans, etc.

Interest- this is income from the provision of capital in debt in various forms (loans, credits, etc.), or from investments of an industrial or financial nature.

Interest rate– this is a value characterizing the intensity of interest accrual.

The amount of income received (i.e. interest) is determined based on the amount of invested capital, the period for which it is lent or invested, the size and type of interest rate (rate of return).

Increase (growth) of the initial amount of debt– this is an increase in the amount of debt due to the addition of accrued interest (income).

Multiplier (coefficient) of increase– this is a value showing how many times the initial capital has grown.

Accrual period– this is the period of time for which interest is calculated (income is obtained).

Accrual interval– this is the minimum period after which interest accrues.

There are two ways to determine and calculate interest:

1. Decursive. Interest is calculated at the end of each accrual interval. Their value is determined based on the amount of capital provided. The decursive interest rate (loan interest) is the ratio, expressed as a percentage, of the amount of income accrued for a certain interval to the amount available at the beginning of this interval.

2. Antisipative (preliminary). Interest is calculated at the beginning of each accrual interval. The amount of interest money is determined based on the accrued amount. Anticipatory interest (discount rate) will be the ratio, expressed as a percentage, of the amount of income paid for a certain interval to the amount of the accrued amount received after this interval.

In both cases of interest calculation, interest rates can be:

- simple– if they are applied to the same initial monetary amount throughout the entire accrual period;

- complex– if after each accrual interval they are applied to the amount of debt and interest accrued for previous intervals.

Using well-known methods of financial and economic calculations, it is possible to calculate, for example:

Compound interest is calculated several times a year;

Discounting at a compound interest rate;

Loan term and interest rate level;

Equivalence of simple and compound interest rates;

An accrued amount of a constant financial amount with payments to be made at the end of the period;

The current value and term of the annuity with payment of payments at the end or beginning of the periods;

Annuities (permanent annuities) with simple interest and much more.

Content

Introduction………………………………………………………………………………………...3
1. Development of a credit policy in an organization: stages and forms of control…………………………………………………………………………………………...6
1.1. Essence and classification of receivables…….………6
1.2. Contents, purpose and objectives of the accounts receivable management policy……………………………………………………………..8
1.3. The role of credit policy in the accounts receivable management system……………………………………………………………….10
1.4. Optimal credit policy…………………………………….15
2. Analysis of the main indicators using the example of JSC “RZDstroy”………..22
2.1. Analysis of the balance sheet asset structure…………………………………….23
2.2. Analysis of the structure of the balance sheet liability……………………………………...29
2.3. Assessment of the financial stability of the enterprise……………………….35
2.4. Analysis of liquidity and solvency of the enterprise……………42
2.5. Analysis and assessment of the effectiveness of current activities (business activity)………………………………………………………..48
2.6. Analysis of the financial results of the enterprise……….53
2.7. Analysis of profitability indicators……………………………………57
2.8. Forecasting the possible bankruptcy of an enterprise using E. Altman’s five-factor model……………………………………………………60
2.9. Break-even analysis of the enterprise…………………………………...62
2.10. Effect of financial leverage……………………………………………………….64
Conclusion………………………………………………………………………………….68
References……………………………………………………………71
Appendix 1……………………………………………………………………………….72
Appendix 2……………………………………………………………………………….75
Appendix 3………………………………………………………………………………...…..76
Introduction

In the process of financial and economic activities, an enterprise constantly has a need to carry out settlements with its counterparties, the budget, and tax authorities. When shipping products or providing services, an enterprise, as a rule, does not receive money in payment immediately, that is, it credits its customers. Therefore, during the period from the moment of shipment of products to the moment of receipt of payment, the company’s funds are deadened in the form of accounts receivable. Its level is determined by many factors: the type of product, market capacity, the degree of market saturation with this product, the terms of the contract, and the payment system adopted by the enterprise. The last factor is especially important for a financial manager in the context of planning current cash flows.
Accounts receivable management primarily involves monitoring the turnover of funds in settlements. The acceleration of turnover in dynamics is considered as a positive trend.
Rational organization of control over the state of settlements helps to strengthen contractual and settlement discipline, reduce receivables and payables, accelerate the turnover of working capital and, consequently, improve the financial condition of the enterprise. An increase or decrease in accounts receivable or payable leads to a change in the financial position of the enterprise. It is necessary to monitor and analyze the status of settlements. For this purpose, accounting data and reporting are used.
Any enterprise in the structure of current assets has accounts receivable, the size of which is often impressive. Competition and the desire to increase sales volumes force the use of commodity (commercial) credit, that is, to sell your products with deferred payment. However, an excessive desire to expand the sales market using this sales method can provoke an uncontrolled increase in accounts receivable and a decrease in liquidity. At the same time, the company itself risks becoming insolvent due to a shortage of funds. After all, he has his own obligations to suppliers of goods and services.
For an enterprise, providing an interest-free trade loan to customers is justified only when the benefits from sales with deferred payment are at least no less than the costs of such a loan. Control and management of accounts receivable can save a company from these problems, and therefore increase economic survival in the complex world of business.
Accounts receivable itself has not only negative aspects, but also positive ones. Its presence indicates the attractiveness and competitiveness of the product and allows it to attract buyers, including those experiencing financial difficulties. However, cash shortages, diversion of the enterprise's financial resources and the risks of bad receivables significantly outweigh this balance.
The main task of managers is to build a decision-making system that would allow them to evaluate and compare the benefits and risks when concluding transactions with deferred payment. Therefore, in order to achieve the optimal amount of receivables and ensure timely repayment, a credit policy is developed and regularly reviewed. Credit policy must correspond to the development strategy of the enterprise and involves solving the main issues:
· which counterparties can be provided with trade credit, and which are undesirable;
· under what conditions and for what period is such a loan provided;
· what is the procedure for collecting receivables.
The purpose of the credit policy must be consistent with the company's development strategy. Typically, the goal may be to increase the sales volume and return on assets of the business while reducing the risk of insolvency. The goal of credit policy may be to build reliable long-term relationships with buyers and to collect debt in a manner that does not threaten these relationships.
The purpose of course work is to systematize, deepen and consolidate the acquired knowledge, as well as to acquire practical skills for independently solving specific problems.
When determining the goal, the main objectives of the course work were set, such as:
· development of credit policy in the organization: stages and forms of control;
· analysis of the main indicators of the company JSC "RZDstroy"

1. Development of credit policy in the organization: stages and forms of control
1.1. Essence and classification of receivables
In the process of financial and economic activities, organizations constantly have a need to carry out settlements with their counterparties, the budget, tax authorities and other debtors and creditors. When shipping products or performing work or providing services, a business entity, as a rule, does not receive money in payment immediately, that is, it credits customers. Therefore, during the period of time from the moment of shipment to the moment of receipt of payment, the funds form a receivable.
The economic nature of accounts receivable is multifaceted, therefore, domestic and foreign economists have several common points of view when formulating its definition. .
According to one of them, accounts receivable should be understood as debt to the organization of various legal entities and individuals arising in the course of economic activity. This statement is based on a balance sheet equation, which is derived due to the properties of double entry, where each business transaction is reflected in the same amount in the debit and credit of different accounts, and the organization acts as a debtor and creditor. .
From the perspective of an organization's marketing policy, a number of authors consider accounts receivable as a tool for stimulating demand. Under the influence of market competition, business entities strive to attract as many buyers as possible by providing them with a deferred payment for purchased goods, which brings benefits in the form of an increase in sales volume. In this case, receivables are expected and planned within the framework of the organization's credit policy. In this regard, one of the unresolved methodological problems is the problem of assessing the effectiveness of using stimulating receivables as a marketing lever that increases demand for products (works, services) and sales volume. .
In the following approach, accounts receivable are understood as a form of investment. Organizations, by providing accounts receivable in the form of deferred (installment) payment for sold products (works, services), divert their working capital into settlements for unrealistically long periods and thereby lend to their counterparties, creating a risky environment of non-repayable trade loans with very long settlement periods. In turn, such organizations finance their own finances using borrowed funds, thereby transforming their debts into debts towards themselves. .
A number of domestic and foreign economists consider accounts receivable as a tool for managing the working capital of an organization. Hence, accounts receivable represents the investment of funds and the expansion of credit sales in order to increase sales volume and equity. This approach, in our opinion, rather describes the properties of receivables. .
Accounts receivable is understood as the right of claim of an organization for the receipt of financial and non-financial assets, arising from the obligations of legal entities and individuals under a contract in the course of business activities, in order to ensure an acceptable level of financial stability. .
Classification of accounts receivable.
Classification attribute Classification group
Degree of liquidity Highly liquid, medium liquid, illiquid
Elements Debt of buyers and customers; bills receivable; advances issued; debt of affiliates and subsidiaries; other debtors
Duration of education Short-term; mid-term; long-term
The feasibility of education is justified; unjustified
Secured by guarantees Secured; not secured
Degree of return reliability Reliable; doubtful; hopeless
Degree of exposure to planning Planned; not planned
Possibility of control Controlled; not controlled

1.2. Contents, purpose and objectives of the accounts receivable management policy
According to statistics, 20-25% of the total assets of a typical industrial enterprise are accounts receivable, while accounts payable make up 10-15% of liabilities.
Accounts receivable make up a significant portion of a company's assets in a modern economy. Taking these facts into account, it should be recognized that accounts receivable management is an important part of the short-term financial policy of the company. It directly affects the profitability of the company. In addition to the obvious considerations that the faster the buyer pays for the goods, the faster the money received will be invested in the company’s turnover, it should be remembered that the presence of receivables generates company costs, explicit and implicit. The latter should include lost interest from ineffective investments, deadened in long-unpaid receivables. The high level of these costs reduces both the accounting and economic profit of the company.
Effective management of accounts receivable is also the most important characteristic of a company’s liquidity, since the less funds are deadened in accounts receivable, the fewer “bad” debts it has, the shorter the cash circulation cycle, the faster and more accurately it pays its obligations. Both creditors and rating agencies will carefully study the company's receivables, resolving issues of its creditworthiness and its credit rating.
In order to effectively manage accounts receivable, enterprises must develop and implement a special financial policy for managing accounts receivable.
Accounts receivable management includes the following areas of activity:
· control over the formation and condition of accounts receivable;
· determination of credit and collection policies for various groups of buyers and types of products (credit policy);
· analysis and ranking of clients (based on credit histories);
· control of settlements with debtors for deferred and overdue debts (based on the accounts receivable aging register);
· forecast of cash receipts from debtors (based on collection ratios);
· identifying methods for accelerating debt collection and reducing bad debts.

1.3. The role of credit policy in the accounts receivable management system
The most important function of analyzing the financial condition of a company is to provide the company’s management with information on the basis of which decisions necessary for development, achieving the company’s goals, ensuring the financial stability and well-being of the enterprise are made.
The dilemma faced by the management of the enterprise: on the one hand, the desire to sell products on an advance payment basis in order to shorten the financial cycle and quickly return funds for shipped finished products, which in turn can scare off many potential customers, and on the other hand, the desire to expand sales volumes for the provision of preferential payment terms, which may lead to a reduction in own working capital and additional operating costs due to the need to attract borrowed funds, is not so obvious. Ultimately, all management actions, in our opinion, should be focused on ensuring the financial stability of the enterprise and increasing its market value, which creates an objective need to form a system of goals and evaluate the effectiveness of credit policy from this point of view.
The credit policy of an enterprise is a set of principles for managing receivables and payables. The volume, turnover and dynamics of accounts payable and receivable affect the entire system of indicators of the financial condition of the enterprise: the efficiency of operations, through indicators of sales revenue and costs of raising funds; on business activity through indicators of turnover of accounts payable and receivable. Also, these indicators are key in determining the solvency, liquidity and financial stability of the company.
Progress in receivables management is impossible without a credit policy - a set of rules governing the provision of commercial credit and the procedure for collecting receivables for an enterprise. The credit policy is adopted for a year, after which the goals and objectives, adopted standards, approaches and conditions for the enterprise are clarified.
The enterprise's credit policy answers four questions:
1. to whom should the loan be provided?
2. for how long?
3. in what sizes?
4. what are the sanctions for non-compliance with the conditions (client/manager)?
Providing a loan is not the company’s central competitive advantage, that is, focusing the client’s attention on this and first of all declaring the possibility of providing a loan during negotiations when working with clients is prohibited. Therefore, during negotiations, you should always try to work with prepayment. If full prepayment is not possible, you should try to get a partial prepayment. And only in the case when the client makes convincing arguments for the need to provide him with a loan, and provided that this client is of interest to the Company (is a target), should we begin to discuss the loan terms offered by the company.
The size of the loan and possible terms are provided individually and depend on various checks, the results of which the manager cannot know at the initial negotiations; therefore, it is impossible to promise anything to the client in advance. In this regard, the phrase is appropriate: “Yes, we have such an opportunity, we lend to our clients, for this you must provide a number of documents, we will consider them and make a decision” (context: yes, we lend to our clients, but the loan must be earned (credit history, a certain sample size per month)), but nothing can be promised, since the committee’s decision, in principle, can be negative.
Considering accounts receivable as a commercial loan to the buyer, it should be clearly understood that, despite the significant differences and specifics of the activities of enterprises in the real sector of the economy compared to banks, the general logic of the credit process and the principles of granting credit must be preserved. Moreover, the positive experience that has been accumulated in the banking sector in managing credit risks must certainly be taken into account. In particular, the ideology of a client-oriented approach, which has been quite actively developed in banks, should be reflected in the practice of enterprises: you need to know your client, understand the specifics of his business, introduce individual conditions for providing deferred payment, establishing credit limits, introducing penalties sanctions.
In addition, credit policy and accounts receivable management should become a systematic process at any enterprise with personalized responsibility for the quality of the accounts receivable portfolio and the effectiveness of the current sales policy. At the same time, management actions should be differentiated depending on the stage of the receivables life cycle: formation (providing a loan), monitoring (the deferred payment period has not expired) and working with problem loans (the company is faced with non-repayment of debt after the expiration of the contract). It is quite obvious that the main management actions to level credit risk should be carried out precisely at the first stage.
The choice of a working capital management model, that is, the degree of participation of credit sources in financing the current activities of the company, also depends on the type and form of lending at the enterprise.
When developing a borrowing policy, a financial manager can choose alternative forms of credit financing for the current activities of an enterprise that are most consistent with the characteristics of its production and commercial cycle.
The following forms of lending to an enterprise are distinguished: financial loans received from banking and non-banking financial institutions, commercial loans from suppliers, accounts payable of the enterprise, debt on the issue of debt securities. .
Forms of enterprise lending Essence and content of the form of enterprise lending
Bank loan This is the main form of loan in which funds are provided for temporary use by banks. It is provided by a commercial bank that provides settlement and cash services to the enterprise. Although formally it is unsecured, it is actually secured by the size of the enterprise's receivables, as well as the amount of its own monetary and other assets, information about which the bank can obtain on the basis of the latest balance sheet. Options for providing an enterprise with a blank loan are a short-term loan for temporary needs and a seasonal loan.
Contract loan This type of loan is usually provided by a bank against collateral, but this requirement is not mandatory. When providing this loan, the bank opens a current account for the company, which records both its credit and settlement transactions. In European lending practice (Great Britain and some other countries), a variation of this form of bank loan is an “overdraft”.
Lombard loan This type of loan can be obtained by an enterprise using highly liquid assets as collateral. The size of the loan in this case corresponds to a certain part (but not all) of the value of the assets pledged. This form of bank loan also refers to short-term lending.
Mortgage loan This type of loan is usually provided by banks that specialize in issuing long-term loans secured by non-current assets in tangible form or the entire property complex of an enterprise. At the same time, the property pledged to the bank continues to be used by the enterprise. With the cessation of issuing unsecured long-term loans to enterprises, mortgage loans become the main form of long-term lending.
Rollover loan It is a form of long-term bank loan with........

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Federal Agency for Education

State Educational Institution of Higher Professional Education "Udmurt State University"

Institute of economics and management

Department of Finance and Accounting

Course project

In the discipline "Financial Management"

On the topic: “Formation of an organization’s credit policy”

Completed:

Student gr 604-51 Goryachkina M.A.

Checked:

Senior teacher of the department FiU Timirkhanova L.M.

Izhevsk, 2010

Introduction

1. Credit policy and its formation……………………………5

1.2. Types of credit policy………………………………………………………6

1.3. Methods and principles of providing loans……………………..8

1.4. Assessment of the effectiveness of credit policy………………………11

2. Credit policy of the enterprise…………………………………….15

2.1. General characteristics of the enterprise…..……………………………15

2.2. Credit policy of LLC PKF "Sintez-Trade"………………….18

2.3. Methods, techniques and techniques for analyzing receivables and payables…………………………………………………………………………………...21

2.4. Analysis of the dynamics, structure of receivables and payables…………………………………………………………………………………...23

2.5. Analysis of receivables and payables turnover…………………………………………………………………………………...30

2.6. Comparison of accounts receivable and accounts payable…………32

2.7. Conclusions and proposals………………………….………………………..34

Conclusion

List of used literature

Applications 1,2,3

INTRODUCTION

Russia's entry into the market is largely related to the realization of the potential of credit relations. The creation of a financial market means a fundamental change in the role of credit institutions in the management of the national economy and an increase in the role of credit in the system of economic relations.

Credit in the conditions of Russia’s transition to the market is a form of movement of loan capital, i.e. monetary capital provided on loan. Credit ensures the transformation of money capital into loan capital and expresses the relationship between lenders and borrowers. With its help, free cash capital and income of enterprises, the personal sector and the state are accumulated, turning into loan capital, which is transferred for temporary use for a fee. Capital physically, in the form of means of production, cannot flow from one industry to another. This process is usually carried out in the form of movement of money capital. Therefore, credit in a market economy is necessary primarily as an elastic mechanism for the flow of capital from one industry to another and equalization of the rate of profit.

Credit resolves the contradiction between the need for the free transfer of capital from one branch of production to another and the fixation of production capital in a certain natural form. It also allows one to overcome the limitations of individual capital.

At the same time, a loan is necessary to maintain the continuity of the circulation of funds of operating enterprises and to service the process of selling industrial goods, which is especially important in the conditions of the formation of market relations.

By regulating borrowers' access to the loan capital market, providing government guarantees and benefits, the state directs banks to preferentially lend to those enterprises and industries whose activities correspond to the objectives of implementing national socio-economic development programs. The state can use the loan to stimulate capital investment, housing construction, export of goods, and development of backward regions.

Without credit support, it is impossible to ensure the rapid and civilized development of farms, small businesses, and the introduction of other types of business activities in the domestic and foreign economic space.

The purpose of this course project is to substantiate the need for the organization's credit policy.

This paper examines the concept and goals of credit policy, provides an example of the implementation of credit policy at PKF Sintez-Trade LLC, and also develops proposals to improve the efficiency of the enterprise’s credit policy.

1. CREDIT POLICY AND ITS FORMATION

An enterprise's credit policy is a set of measures to manage accounts receivable and payable and determine the optimal conditions for providing and receiving commercial loans and loans to lending organizations.

in choosing the optimal level and rational structure of current assets, taking into account the specifics of the activities of each enterprise;

in determining the size and structure of sources of financing of current assets.

The goals of an effective credit policy are:

increasing product sales volumes in the short and long term to achieve the required profitability;

maximizing the effect (income) from investing in accounts receivable;

achieving the required accounts receivable turnover;

limiting the relative growth of overdue accounts receivable, including doubtful and bad debts in the structure of accounts receivable.

1.2. TYPES OF CREDIT POLICIES

The type of credit policy characterizes the fundamental approaches to its implementation from the standpoint of the relationship between the levels of profitability and risk of the enterprise's credit activity. There are three fundamental types of enterprise credit policy in relation to product buyers - conservative, moderate and aggressive.

Conservative (or tough) type of enterprise credit policy aimed at minimizing credit risk. Such minimization is considered a priority goal in the implementation of its lending activities. By implementing this type of credit policy, the enterprise does not seek to obtain high additional profits by expanding the volume of product sales. The mechanism for implementing this type of policy is a significant reduction in the number of buyers of products on credit at the expense of high-risk groups; minimizing loan terms and size; tightening loan conditions and increasing its cost; use of strict procedures for collection of receivables.

Moderate type of enterprise credit policy characterizes typical conditions for its implementation in accordance with accepted commercial and financial practices and focuses on the average level of credit risk when selling products with deferred payment.

Aggressive (or soft) type of enterprise credit policy The priority goal of lending activities is to maximize additional profits by expanding the volume of sales of products on credit, regardless of the high level of credit risk that accompanies these operations. The mechanism for implementing this type of policy is to extend credit to riskier groups of product buyers; increasing the loan period and its size; reducing the cost of the loan to the minimum acceptable size; providing buyers with the opportunity to extend the loan.

In the process of choosing the type of credit policy, the following main factors should be taken into account:

¨ modern commercial and financial practice of trading operations;

¨ the general state of the economy, which determines the financial capabilities of buyers and their level of solvency;

¨ the current situation on the commodity market, the state of demand for the company’s products;

When determining the type of credit policy, it should be borne in mind that its hard (conservative) version negatively affects the growth of the enterprise’s operating activities and the formation of sustainable commercial relations, while its soft (aggressive) version can cause excessive diversion of financial resources and reduce the level of solvency of the enterprise, subsequently cause significant costs for debt collection, and ultimately reduce the profitability of current assets and capital used.

Accounts receivable and its level determine the credit policy of the enterprise in relation to product buyers. Credit policy is a sonorous name that implies only an answer to three simple questions: to whom should a loan be provided, on what terms and how much? The main criterion for the effectiveness of credit policy is an increase in profitability of the company’s core activities, due to an increase in sales volumes (which will happen with the liberalization of lending), or by accelerating the turnover of receivables (which is facilitated by a tightening of credit policy). Moreover, liberalization of credit policy is appropriate until “until the additional benefits from increasing sales volumes are equal to the additional costs of the loan provided.” On average, in mechanical engineering, accounts receivable takes more than 50 % of the amount of working capital. And if you look at business not from the point of view of survival, but as an opportunity to realize commercial interests, then the accumulated receivables contain huge reserves for increasing the efficiency of your own business. Decisions on developing credit policy require the efforts of managers and the methodical work of accountants and economists. The development of a credit policy cannot be entrusted to the sales department or a specially designated structure that supervises the main debtors. Trying to reduce the negative consequences of the creative initiatives of sales employees, many directors independently began to make decisions on the most important customers. And as a result, they themselves find themselves in a difficult situation. The manager needs to resolve a number of serious issues: on what terms should the products be shipped, when is it profitable to make concessions on payment terms, where is the line after which it is necessary to tighten the previously agreed conditions, how much will it cost the enterprise to conclude the next major contract, etc. It is difficult to obtain an economically balanced answer to all these questions if the enterprise does not have tools, which guide sales structures when providing credit to buyers and standards providing loans that set reasonable rules and restrictions. Credit policy instruments represent both templates for assessing potential debtors and regulations or procedures for the operation of the relevant service. The answer to the question “who should I provide a loan to?” largely depends on the risk of non-repayment of the loan or delay in receiving funds. Therefore, the distribution of buyers into risk groups is one of the main objectives of credit policy. One of the most common tools for solving this problem is credit history assessment method(credit scoring), which is based on ranking buyers according to a number of selected indicators and introducing decision-making criteria for granting a loan. Each enterprise must independently select these indicators. Then all indicators are converted into 100 point scale. In this case, the highest score on this scale is assigned to the most preferred value. At the next step, significance weights are assigned to each indicator and a summary rating of the selected enterprise - buyer is displayed. Significance weights can be assigned by the director of the enterprise, or can be calculated on the basis of past work data, provided that the environment of the enterprise and the conditions for working with it do not change too dynamically. To do this, statistics are collected on selected indicators and, using correlation coefficients, the impact of each of them on the repayment of receivables is determined. Calculation of weighted estimates for all major debtors allows you to determine priorities when considering options for lending to them. Thus, the company takes the first step in optimizing the structure of accounts receivable. The customer scoring model also has a stimulating function for buyers - they will always strive to increase their rating by purchasing a used product. O in larger quantities, while reducing the time frame for collection of receivables in order to ensure a O greater discounts on prices. The effectiveness of using such models based on ratings has been proven by Western practice. According to Aberdeen Group, the implementation of customer assessment systems within the first two to three years provides an average increase in sales volume per sales manager by 10–30% per year, and profit from each transaction increases by 1–3%.

Any machine-building enterprise in modern conditions is always limited in financial resources, so the task of efficiently distributing them with minimal risks is most relevant. If the credit history assessment method allows us to weigh the risks associated with providing loans to individual buyers, then method for determining the optimal loan term(the economic time of credit) gives an idea of ​​the effectiveness of a commercial transaction, answering the question about the conditions for placing a commercial loan. Calculation of the optimal policy for loan terms comes down to comparing additional income received as a result of increased sales and costs associated with financing increased accounts receivable. Consequently, the main parameters for setting and implementing credit policy are: sales volume for individual groups of goods, types of business or territorial basis; the volume of investments in accounts receivable and the cost of capital attracted for these purposes; the amount of non-recoverable debts on accounts receivable.

Currently, enterprises have a need to standardize sales activities. When developing standards for the provision of commercial loans, enterprise specialists most often set not absolute values ​​of parameters, but certain intervals. In relation to the method of assessing credit history, discussed earlier, work with the rating of main buyers is regulated, for example, as follows:

when dialing less 50 credit points are not provided to companies;

from 50 before 70 points, companies are offered limited lending, which can be expressed in additional conditions (for example, in the registration of sales using promissory notes that include interest income) or restrictions on the amount of the loan, followed by strict control of the schedule for its repayment;

with more 70 points, credit is provided on normal terms, and exclusive terms are also possible in the case of the strategic importance of a particular buyer or expected future economic benefits.

It should be understood that the developed standards are based on a limited number of indicators calculated over a limited period of time. Consequently, formal criteria expressed in digital form are complemented by approval procedures and, if necessary, overcoming previously specified restrictions. When developing a company’s credit policy, the following rules should be adhered to:

· customer segmentation;

· differentiated approach;

· attention and activity towards debtors;

· sequence of actions in working with debtors;

· discounts are better than fines;

· an accountant is your agent of influence within the customer company;

· early diagnosis of your internal problems;

· development of collection procedures, price of debts, calculation of the cost of debt;

· system for creating reserves for doubtful debts;

· clear procedure for filing claims;

· monitoring how clients fulfill the terms of contracts.

The following factors influence credit policy: the nature of the product; traditions in this field of activity; seller's position; buyer's position. These factors are also used for the company's pricing policy. Therefore, it becomes clear why commercial and financial management must make coordinated decisions.

No matter how effective the system for selecting buyers is, in the course of interaction with them all sorts of slips are not excluded, so the enterprise is forced to organize some kind of system of control over the fulfillment of payment discipline by buyers. This system, called the customer relationship administration system, implies: a) regular monitoring of debtors by type of product, amount of debt, repayment terms, etc.; b) minimizing the time intervals between the completion of work, shipment of products, and presentation of payment documents; c) sending payment documents to the appropriate addresses; d) careful consideration of customer requests regarding payment terms; e) a clear procedure for paying bills and receiving payments.

An enterprise's credit policy is assessed to determine its impact on profits. To do this, you need to carry out several operations:

· sales assessment (how sales volume changes when different loan terms are established);

· assessment of the cost of goods sold (how changes in sales volume affect the cost of goods sold);

· assessment of management costs, loan recovery and doubtful debts (how these costs change if the loan term changes);

· assessment of discounts (you need to know the percentage of customers demanding a discount and estimate the losses from the discount provided);

· assessment of the average period for repayment of funds by clients;

· the assessment of the volume of receivables is determined by:

· assessment of the marginal cost of funds immobilized in accounts receivable (when the volume of accounts receivable increases, the total costs of financing also increase);

· profit assessment for various credit policies;

· assessment of the acceptable period of delay in payment of bills;

· assessment of the buyer's refund procedure.

All these measures will contribute to effective production and economic activity, solvency and financial stability of a commercial organization.

Questions and tasks for discussion

1. What characteristics underlie the classification of current assets?

2. What factors influence the size of an enterprise’s working capital?

3. What are the features of determining the need for standardized working capital?

4. What are the ways to determine your own working capital and working capital?

5. How does the financial cycle affect the financial stability of an enterprise?

6. What are the main approaches to the buyer lending policy?

7. What is the essence and how to use client scoring?

Chapter 4. Methods of financing activities
machine-building enterprise

Based on the results of studying this topic, you should understand the essence of the “golden rule of financing”, methods of financing non-current assets such as bank lending, project financing, venture financing, and features of the use of financial leases (leasing). What methods of financing can be used to form the current assets of an enterprise.

Funding principles

An important problem in today's economic conditions is the organization of competent financing of the assets of a machine-building enterprise. The content of each group of enterprise assets reflects certain patterns of their financing. These patterns are expressed in generally accepted rules "gold financing":

· the financial resources necessary for investment must be at the disposal of the enterprise as long as they remain connected as a result of the investment. The associated resources of an enterprise are usually understood as the volume of financial resources that an enterprise must constantly have in order to ensure the uninterrupted functioning of its core activities;

· the “golden rule” of managing an enterprise’s accounts payable is to maximize the repayment period without compromising existing business relationships.

The practical implementation of this rule has led to the emergence of strict requirements to ensure a number of financial proportions in the balance sheet of the enterprise, strict correspondence of certain elements of assets and liabilities (see Table 4.1.). The rules of financing involve the selection of financial sources in the above sequence within the limits of the balance of funds after securing the previous item of the asset at the expense of this source. The use of a subsequent source indicates a certain decline in the quality of the enterprise’s financial support. If in real life financing is associated with the need to borrow from other sources, then this indicates an irrational use of capital and the immobilization of resources into excess reserves.

Table 4.1. Golden Rule of Funding

ASSETS	LIABILITIES
1. Non-current assets
1.1.Fixed assets and intangible assets	1. Authorized and additional capital 2. Retained earnings, accumulation fund 3. Long-term loans and borrowings
1.2. Capital investments
1.3.Long-term financial investments	1. Authorized and additional capital 2. Savings funds and retained earnings 3. Long-term loans and borrowings
2. Current assets
2.1. Inventories and costs	1. Authorized and additional capital (residual) 2. Accumulation funds and retained earnings (residual) 3. Stable liabilities 4. Consumption funds and reserves 6. Creditors 7. Short-term loans and borrowings.
2.2 Debtors	1. Commercial loan debt 2. Short-term loans and borrowings
2.3. Short-term financial investments	1. Creditors 2. Consumption funds and reserves
2.4. Cash	1. Reserve capital 2. Savings funds and retained earnings 3. Credits and borrowings 4. Creditors 5. Consumption funds and reserves

The general rule for financing the property of an enterprise says that non-current assets (used for more than a year) should be financed from long-term sources (long-term loans, borrowings, leasing, etc.), and current assets (used during the year) should be financed by short-term sources. Only this method of financing will ensure the financial stability of the enterprise.

Methods of financing non-current assets, as a rule, are: own funds and borrowed funds. The organization's own funds primarily include profits remaining at the disposal of the enterprise and depreciation. For strategically important projects, a one-time increase in the authorized capital through the issue of shares or additional contributions from the owners of the enterprise can serve as a source of financing. However, the issue of shares is an expensive and time-consuming process, carried out in accordance with existing legislation for joint-stock companies. It could also reduce the stock's market value. In the context of the emergence of a market economy in Russia, this method of raising funds is practically not used. Depreciation is the monetary expression of depreciation of an organization’s depreciable property in the process of their productive functioning. In other words, this is a refund of funds previously spent on the acquisition of this property. Depreciable property is property, results of intellectual activity and other objects of intellectual property (intangible assets) that are owned by the taxpayer, used by him to generate income and the cost of which is repaid by calculating depreciation. Depreciable property is property with a useful life of more than 12 months (fixed assets). Therefore, for each organization, the depreciation policy is very important, determining the speed of this reimbursement, i.e. obtaining funds for their subsequent use for the restoration of depreciable property.

The main provisions on this issue are set out in Article 258 of the Tax Code of the Russian Federation. There are several methods for calculating depreciation. These methods and the procedure for calculating depreciation amounts are defined in Article 259 of the Tax Code of the Russian Federation. The classification of fixed assets included in depreciation groups was approved by Decree of the Government of the Russian Federation dated January 1, 2002 No. 1.

Bank lending

The use of debt capital (meaning long-term financing) is usually more profitable, since the fee for this source is usually lower than for equity capital. This is explained primarily by the “tax shield” effect. In addition, attracting this source allows the organization’s management to significantly expand their investment opportunities.

The main types of borrowed funds are bank loans. Bank loans are provided by commercial banks and other credit organizations that have received a license from the Central Bank of the Russian Federation to carry out credit operations. Since long-term loans are used to finance capital investments and must be repaid through future profits received from these investments, therefore, in order to obtain such a loan, economic calculations are necessary to confirm the organization’s ability to repay this loan. The organization must prove its solvency, develop a high-quality business plan for the purchase of equipment for the enterprise, and provide the contract with the necessary collateral. In Russian practice, it is currently quite problematic to obtain a long-term loan, especially for small businesses. This is primarily due to the lack of sufficient collateral, and enterprises are trying to use short-term loans to purchase fixed assets. Studies of this process for enterprises in various industries show that this method of financing violates the “golden rule of financing” and leads enterprises first to insolvency and then to bankruptcy.

Sberbank of Russia offers participation in financing investment programs in the form of long-term lending for a period of up to 5 years. These are the programs:

To expand the volume and range of products, improve their quality, reduce production costs, modernize fixed assets;

Purchase of equipment without using own funds necessary for current production activities;

The payback of projects should be due to the generated profit from the project.

In this case, it is necessary to provide a list of necessary documents:

1) a business plan for the project, proving the effectiveness of the project, payback and feasibility;

2) accounting documents (photocopies with the stamp of the tax office, certified by the Client’s seal);

3) auditor’s report on checking the reliability of the annual report;

4) acts of the tax inspectorate on the results of audits;

5) a certificate from the State Tax Inspectorate (STI) about the presence/absence of debt to the budget;

6) a certificate from the State Tax Inspectorate about accounts opened in commercial banks.

In order to reduce risks, the bank requires participation in the project with its own funds (30% of the project cost), and they must be invested by the enterprise in the project before applying to the bank for a loan. In addition, the bank requires the loan to be secured with collateral: Sberbank securities; real estate; equipment; Vehicle; deposits; guarantees from third party solvent organizations. The bank establishes control over the intended use of funds.

The loan application must be accompanied by legal documents: Charter (Regulations of the enterprise); Memorandum of association; Minutes of meetings of founders (participants), containing changes and additions to the statutory and constituent documents, confirming the powers of the head of the enterprise; Certificate of state registration (Original, copy certified by a notary); A photocopy of the tax registration certificate.

Title documents for the subject of pledge:

Decisions of management bodies on the transfer of property as collateral for a loan, if, according to the Charter, the amount of collateral requires such a decision;

Documents confirming the intentions of guarantors, guarantors, in connection with the Client’s emerging obligations;

Constituent and financial documents of guarantors/sureties.

Each commercial bank can set its own requirements for the borrower to guarantee the repayment of the loan.

So far, the main financial activity of Russian banks is directed towards those projects that are being implemented at enterprises they own or control. In general, a number of reasons and facts prevent Russian banks at the present stage from investing in expensive projects on any significant scale. Among them: instability of the domestic economy; banks lack sufficient reserves; high inflation rates; lack of collateral in the required amounts; lack of stimulation of investment activity and instability of tax legislation.

Project financing

Russian industry is experiencing an acute investment crisis. According to estimates by IMEMO RAS, only to replace and modify the active part of existing production assets, $3036 billion is required annually. This circumstance forces commercial banks to look for new forms of lending to enterprises.

An alternative to investment lending is currently project financing (PF). Due to its flexibility, this form is an effective tool for raising funds in an unstable economy. Today, project financing is becoming increasingly widespread in the domestic business environment, as it corresponds to modern Russian realities. Project finance is usually provided to a special company, separated from the enterprise structure - the owners of the project, and is repaid only from the funds generated by the assets within the project. The specifics of project financing assume that projects are implemented based on the following principles:

· strictly defined or separate economic activities within the project;

· competent risk management and the presence of a system of functional guarantees for project participants;

· the presence of a well-developed financial model, which is the basis for investment and financing;

· professional project management.

In the classical project financing scheme, as a rule, an economically and legally separate project company is created. This approach has several advantages. This is explained by the fact that such a company begins to work “from scratch” and is not connected with the “past”. Some authors consider its presence to be one of the most important signs of PF. A project company (PC) is created by the sponsors (initiators) of the project solely for the purpose of implementing the project. Most often, the creation of a PC is dictated by the fact that receiving a project loan is reflected on the balance sheet of the PC, and not on the balance sheet of the founders, who would not want to worsen their financial situation with this operation. This method of lending is called “off balance sheet”. In addition, the creation of a PC ensures transparency of the project. There is less difficulty in determining and planning cash flows because there is no impact from non-project activities. Transparency helps to establish trust between partners and a higher estimate of the project's value. In traditional investment financing there are only two main parties - the lender (investor) and the borrower. With project financing, the circle of people involved is noticeably wider. The list of possible participants and their role in the project is shown in Diagram 4.1.

Lenders participating in project financing typically have the opportunity, in the event of default, to claim only the assets of the project, and not the funds of the owning companies (so-called non-recursive financing). In addition to the project owners who form equity capital, project financing involves the participation of lenders, contractors, equipment suppliers, insurance companies, a management company, suppliers of raw materials and buyers of finished products.

Rice. 4.1. Possible participants in project financing.

In certain cases, public funds may also be used (sometimes in the form of government loans and subsidies, but more often in a veiled form - in the form of guarantees and tax breaks). The bank participating in the project takes a high risk and only if the investment project promises very high profits. Therefore, he actively delves into the development and implementation of an investment project, the management of a commissioned facility, assesses the effectiveness of investments, the dynamics of cash flows, prospects for product sales, project risks, etc. One of the main methods of managing project risks (i.e., risks associated with the implementation of investment projects) is the distribution of these risks among all participants in the implementation of projects. Particular attention is paid to the issue of assessing the safety margin of the project; this reserve is determined by the debt coverage ratio (DCR), which is calculated as the ratio of the amount of expected net proceeds from the project to the planned payments on credit debt. In any case, it cannot be less than one.

Often, to ensure coordination of all participants and increase the efficiency of the “project team,” consortia are created - temporary agreements on production, commercial, and financial cooperation. As for the borrower’s responsibilities, the most important among them are the provision of regular reports on the progress of work, signed contracts, the occurrence of possible obstacles to the implementation of the project, compliance with construction, technical, environmental and other standards, and the carrying out of work in strict accordance with technical documentation. The project agreement includes the procedure for procurement and selection of suppliers and contractors (usually on a competitive basis), work schedules, estimates (including a clear distribution of costs between the borrower and the lender).

The borrower's obligations under the project implementation agreement are considered partially fulfilled after the investment object is put into operation (the procedure for delivery is specified in the project agreement), and fully fulfilled after all payment obligations under the loan agreement are repaid. In some cases, the costs of supervision (control) of project implementation can reach 5 percent or more of the total object of investment in the project.

Therefore, the main features of project financing are:

When organizing the financing structure of a project, all kinds of existing types and sources of financing are used, as well as financial instruments of an innovative nature, while credit is only one of these types and sources;

To implement a project, a special company is often created, which usually carries out the functions of the Borrower and the Project Operator;

The project involves a large number of organizations, both participating in its financing and involved at various stages of its preparation and implementation;

Based on the fact of limited (complete absence) of security, such an essential feature follows as the principle of distributing risks among the maximum number of project participants;

The size, complexity of the project and the structure of its financing explain the long time it takes to prepare the project and study its various aspects by the project participants (financing participants in particular). The same reasons determine the volume and complexity of project and loan documentation created within the framework of the project.

However, for the borrower of funds under the Pension Fund, in addition to the obvious advantages of this scheme (primarily limited liability to the lender), there are also certain disadvantages:

Increased interest on the loan due to high risks, as well as increased commission (fee for project assessment, fee for organizing financing, supervision fee, etc.);

High costs for pre-design work. They can reach 10 percent or more of the project cost (preparation of a feasibility study, work to clarify the possibilities for acquiring the required amount of raw materials, assessment of the impact of a future project on the environment, in-depth marketing research, other auxiliary pre-project work and research). These costs are borne by the potential borrower; without detailed pre-project documentation, the bank, as a rule, does not consider an application for project financing;

A fairly long period of time from submitting an application to making a decision on financing (this is due to a careful assessment of pre-project documentation by the bank and a large amount of work to organize financing (creation of a banking consortium, etc.);

Extremely strict control over the activities of the borrower (financial, production, commercial) by the bank (banking consortium);

In some cases, the risk of the borrower losing its independence (if the lender reserves the right to acquire shares in the company in the event of successful implementation of the project).

Therefore, in a number of situations, “traditional” schemes for financing investment projects (loans secured by collateral, guarantees and sureties; issue of shares and bonds; leasing, etc.) will be preferable for the borrower.

A number of Russian commercial banks are gradually preparing to apply PF principles in their activities, creating PF departments and departments in their structures, sending their employees to study on project analysis, and forming portfolios of investment projects (for example, ROSSBERBANK). And although, when issuing long-term loans, banks still primarily pay attention to highly liquid collateral, as well as to the financial condition of the borrower, nevertheless, they are increasingly subjecting projects proposed for financing to comprehensive and in-depth examination, which is common in the practice of large foreign credit institutions. institutions. Objective needs for structural restructuring of the Russian economy and radical modernization of its technical base will inevitably lead to the emergence of such forms of organizing the financing of investment projects as banking consortia and syndicates, investment banks and issuing syndicates. In this regard, it becomes relevant to study the foreign experience of PF from the point of view of its use on Russian soil.