MECHANISM OF FINANCIAL PROVISION OF THE PROCESS OF REPRODUCTION OF FIXED ASSETS

Abstract

The article is a study of the main elements of the mechanism of financial support for the process of reproduction of fixed assets. Based on the existing theoretical provisions on the reproduction of fixed assets and the features of their implementation in the forms: simple and extended, the study assessed the main advantages and disadvantages of alternative methods of financing the reproduction process. Analysis of the forms of reproduction of fixed assets allowed to form the preferred instruments that can be used by the enterprise for financing. The study proved that the predominant nature of the use of fixed assets determines the preferred methods of financing reproduction and their main instruments. However, the study also proved that when developing a financing mechanism, it is proposed to take into account the influence of both external and internal environmental factors. Based on the identified key aspects of the financial support for the process of reproduction of fixed assets, the main factors influencing financial support were identified, which include: financial stability of the enterprise; level of depreciation policy of the state; availability of credit resources; investment climate in the country; technological level of production. The considered advantages and disadvantages of the main sources of financing have proven that the most attractive for financing the reproduction of fixed assets can be considered innovative sources of financing that allow the enterprise to use innovative fintech, open up opportunities for flexibility in choosing financing mechanisms, make it possible to minimize risks when combining alternative sources of financing, but also cause difficulties in interacting with investors under non-traditional schemes. The formed mechanism illustrates the application of the main financing methods under the conditions of using appropriate instruments that can be selected depending on the financing goals and the most appropriate sources. In addition, the use of this mechanism will allow forming the initial conditions for building an algorithm for the product of optimal sources of financing for the reproduction of fixed assets.