DILEMMAS OF TRANSPORTATION COMPANIES CONCERNING THE EXTERNAL SOURCES OF FINANCING FOR FIXED ASSETS

Marek Mieweglowski, Krystyna Tyszuk and Ewelina Papiewska

Economic and Regional Studies (Studia Ekonomiczne i Regionalne), 2015, vol. 08, issue 3

Abstract: The main objective of the study was to present the external sources of financing for tangible assets in the business of transportation companies. Primary sources, statistics and any information on websites were vital for writing the article. Study and analysis of the collected material were conducted according to the tabular-descriptive method. As transportation companies are in high demand for financing tangible assets connected with their activity, they frequently take advantage of the external financial sources. Loans and leases were compared in this study due to the fact that they are now the two main sources of external funds for investments, regularly used by entrepreneurs in Poland as well as worldwide. Both advantages and disadvantages of financing ways mentioned above were indicated. The availability of capital and its acquisition cost are essential for the expansion of small and medium-sized enterprises (SMEs) and thus affect their level of competitiveness and market position. Choice of the right form of financing should take place after a thorough analysis of which is more advantageous for the entrepreneur as the life of any company depends on these decisions.

Keywords: Financial Economics; Institutional and Behavioral Economics (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ags:plecrs:265211

DOI: 10.22004/ag.econ.265211

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