Investments are called long -term if they are aimed at work (increase, creation, purchase of extraordinary assets) with assets relatively long -term use (more than one year). Most often, such assets are not intended for sale.
Investing money in various forms of securities (state and private institutions) is not long -term.
Long -term investment sources can be classified. Most often, the role of such a source is the profit made by the company as a result of economic and economic activity. If the company does not send part of its profit to long -term investments, it is very likely that in the future it will lose its competitiveness and cease to exist.
Sources of long -term investments
Sometimes companies are trying to make up for the lack of funds by raising the vacation price for their services or products produced, but it must be taken into account that this method can lead to a decrease in demand, and as a result, a strong decline in production volumes can entail a strong decline in production.
The next way can be called – bank loan. In many countries, the banking lending system may be one of the main investment sources. Long -term loans are especially important, which can reduce the financial burden on the borrower, and the company can master the allocated money and have time to make a profit from activities. In many ways, this source depends on the political and economic situation in the country, in an unstable situation or a weak system of banks, the receipt of long-term loans becomes almost not possible for the absolute majority of companies.
A source of resources of additional emission of shares or other securities is gaining more popularity in the CIS. Investors in this method are any individuals and legal entities buying securities of the company.
Budget financing often becomes a good source. However, it can be obtained, in a normal economic situation in the country, when the budget has a surplus. Such lending can even be free or non -speed, but receiving such money is not a simple thing.
As a result, we can say that the above sources of long -term investments have long and masterfully mastered economically in economically developed countries. Domestic business and state structures have so far have only taken the first steps in working with the above investment methods.