Financing the project involves choosingsome methods of payment of costs associated with its implementation, as well as the identification of sources of investment with their structure. This method acts as a way of attracting resources for investment in order to ensure the implementation of the selected project.
- self-financing, investing only at the expense of its own resources;
- shareholding and other types of equity financing;
- lending by banking institutions, as well as issuing bonds;
- Leasing;
- financing from budgetary funds;
- a combination of the various forms of financing mentioned above;
- project financing.
This is a method that needs to be paid moreattention in this article, since in the economic literature one can find diverse views on the question of its composition. One of the main differences is the definition of this term. With all the diversity of its interpretations, it is necessary to distinguish a narrow and broad definition:
- Wide interpretation suggests the followingformulation. Project financing is a combination of methods and forms of providing money for the implementation of various developments. In this case, this concept is considered as a way of mobilizing different sources of resources with the integrated use of appropriate methods by which the project is financed. Also, it can be allocated cash resources, which are sent only to strictly defined goals within the framework of a specific investment development.
- Narrow definition:project financing is a method of providing resources to certain activities, characterized by a way of repayment of such investments. It is based on only those cash incomes that are generated by the investment project. Also for this interpretation is characterized by the optimal distribution of the risks of the parties involved in its implementation interconnected with this project.
Any financing of the enterprise and its projectsrepresents monetary resources that can be divided into own capital (internal), as well as borrowed and attracted capital (external). In this article, the main forms of such sources will be considered in accordance with the objectives of financing specific investment projects.
Such financing of the enterprise canUsed only for small-scale developments. And capital-intensive projects that require additional investments are mainly financed from additional sources.
External financing is the use of suchsources, as a means of various financial institutions and non-financial organizations (state, population and foreign investors), additional contributions of funds of the founders of the business entity. This investment is carried out through the mobilization of raised funds in the form of equity financing and borrowed resources through the attraction of credit financing.
When implementing various investment projectsa financing strategy should be justified, an analysis of all possible methods and sources of financing should be carried out, and a careful development of a scheme for the use of additional funds should be carried out to cover all costs associated with this line of business of the entity.
- the necessary amount of investment in the implementation of the developed project both in the total volume and at each individual stage of its implementation;
- optimization of the composition of financial sources;
- maximum reduction of capital expenditures and risks of the project itself.
Education is a fairly important branch of society, requiring additional funding in certain amounts. Its sources are:
- budgets of various levels;
- provision of paid services in the field of education;
- scientific activities of such institutions with subsequent implementation of its results;
- implementation of entrepreneurship of these organizations, not related to scientific activity and education.
Turning to the statistics, it is necessaryIt should be noted that today municipal and state funding for education occupies about 3% of GDP, and about 2% of GDP comes from the funds of business entities and the population.
This concept implies the existence of a populationcertain decisions that cover the priorities, choice and magnitude of the use of various sources of additional resources. Such financing is a means aimed at solving technical, marketing, social and management strategies. At the same time, the central place is given to the marketing strategy, which essentially induces other components of solutions in other areas (technical, managerial and social). However, these areas of decision-making can be implemented autonomously.
