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The Use of Financial and Credit Tools to Minimize the Risks in the Organization of Production

Author

Listed:
  • Olga Muftahova

    (Institute of Economics, Management and Law, Irkutsk National Research Technical University, Russian Federation.)

  • Andrey Nechaev

    (Institute of Economics, Management and Law, Irkutsk National Research Technical University, Russian Federation.)

  • Oksana Antipina

    (Institute of Economics, Management and Law, Irkutsk National Research Technical University, Russian Federation.)

Abstract

The article describes such form of financing as import revolving leveraged leasing for the purpose of fixed assets modernization. Mathematical modeling techniques are applied in the research. According to the results of the study, the mathematical model of the generalized method of the lease payment calculation is suggested by the authors. The presented method combines several types of leasing. The novelty of this method lies in the fact that on the basis of suggested leasing types the amount of the lease payment is calculated taking into account insurance, financial and currency risks aimed at minimizing losses at downtime due to the limited use of the basic pro duction assets of the company in the production process organization. The authors suggest calculating the payment amount using a floating rate of interest. This proprietary methodology is designed to minimize the risk of production equipment downtime, which ultimately will enable to provide the stability and continuity of the production process.

Suggested Citation

  • Olga Muftahova & Andrey Nechaev & Oksana Antipina, 2015. "The Use of Financial and Credit Tools to Minimize the Risks in the Organization of Production," International Journal of Economics and Financial Issues, Econjournals, vol. 5(4), pages 1060-1065.
    • Handle: RePEc:eco:journ1:2015-04-28
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    References listed on IDEAS

    as
    1. Editors The, 2008. "From the Editors," Basic Income Studies, De Gruyter, vol. 3(1), pages 1-1, July.
    2. Editors The, 2008. "From the Editors," Basic Income Studies, De Gruyter, vol. 2(2), pages 1-3, January.
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    More about this item

    Keywords

    Leasing Payment; Leveraged Leasing; Revolving Leveraged Leasing;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C69 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Other
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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