Candidate of economic sciences Rzhepishevska V.V.

Poltava National Technical University named after Yuriy Kondratyuk, Ukraine

Conditions for attracting external investment resources to the development of enterprise

Necessity of integration into the world economy sets to Ukrainian companies the first priority task to intensify the investment process and to improve the system of investment activity. This improvement is possible by reforming enterprises, based on current theories and models of effective management, involving the necessary internal and external investment.

Lack of own sources of investment resources caused by problems with solvency and profitability requires from companies searching for new ways to attract external sources. The main conditions for attracting foreign investment resources to the development of enterprises are ( Fig. 1):

Figure 1. Terms of attracting external investment resources to the development of enterprise

- the minimum level of risk for potential investor;

- attractive financial characteristics of the enterprise;

- an effective enterprise management system.

Investors' risk may be minimal in the case when both profitability and liquidity of operating assets of the company are high enough. Minimizing risk can be ensured by of the growing demand for the products of the company – the object of investments. All these factors guarantee to the investor a steady cash flow and returning of his investment.

Cash assets management and receivable management are important components in the system of financial decision-making that consider providing of quality management of the financial operations of the company and its investment attractiveness.

Important management objective is supporting the company's management of funds at the minimum required level. To do this, it is advisable to use all possible sources of replenishment funds: revenue receipts from sales in terms of immediate payment, debt collection, sale of reserve financial assets in the form of current financial investments, the sale of tangible and intangible assets (inventories, fixed assets, objects of unfinished production, patents, know-how, etc.) and so on.

The main objective of accounts receivable management company is to minimize the size of the receivables and terms of repayment and to prevent bad debt. The growth of receivables in company breaks its financial strength, because there is a need to attract additional funding. A possible way out of this situation for the company is to improve the quality of receivables by:

- comprehensive assessment of the financial condition of potential debtors, their solvency, reputation;

- diversification of connexion;

- using various forms of security for the repayment of debt (mortgage, guarantee banks, insurance, surety, etc.);

- improving the effectiveness of penalties in accordance with the debtor;

- determine the maximum amount of debt in general and per one customer.

The third condition for attracting external investment resources into the development of the enterprise is an effective enterprise management system, which through a range of methods, techniques and tools of focused organizational impact on the investment activities of the company will enhance its attractiveness. Ensuring of the sustainable development of any enterprise is only possible in the long term through the implementation of corporate strategy. Taking into account that a significant number of Ukrainian enterprises are unprofitable or have a low level of profitability, the corporate strategy for them should be a survival strategy. To avoid such condition of unprofitableness the survival strategy in the order to protect company should provide for measures aimed at making a profit as soon as possible and ensure the investment attractiveness.

Particular attention of the company should be paid to effective using of investment resources as a condition on the formation of its investment attractiveness. Investors are always interested in the efficiency of enterprise investment resources for past periods. Therefore, investors should be provided with information regarding payments on loans in a timely manner and other resources involved in investment, derived rate of return on invested capital.

Consequently, the implementation of these conditions will provide the investment attractiveness of the company, which is the main criterion for choosing an investor of the investee. But in addition to the internal conditions necessary to consider the state of the investment climate in the country, which is largely depend on benefits, decisions and conditions under which foreign money will be involved.