Management of Enterprise Solvency: Theoretical and Practical Aspects

Petro Stetsyuk () and Olena Hudz ()
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Petro Stetsyuk: 'Institute of Agrarian Economics' National Scientific Centre
Olena Hudz: 'Institute of Agrarian Economics' National Scientific Centre

Oblik i finansi, 2014, issue 3, 110-116

Abstract: In the current economic conditions effective business enterprise is impossible without constant involvement of borrowed capital. However, before planning to attract capital by obtaining bank loans, the company's financial service should assess the possibility of a loan by analyzing the solvency of the company. The article addresses the contemporary approaches to the management of company's solvency. The authors summarize the current approaches to the management of solvency of enterprises; outline its purpose and objectives. Described are the main stages of management solvency of the company. Determined are some methodological aspects of credit scoring, which is an important component of management of solvency of the company. Revealed are the factors that affect the management of solvency of the company, and priority areas for its improvement are proved. It is proved that the management of the company's solvency should be carried out continuously, based on a thorough analysis of the target compatibility of the units' activities, using scientific approaches to the selection of methods of effective inspection and management.

Keywords: financing; borrowed capital; solvency; management; evaluation methods; financial condition; agricultural companies (search for similar items in EconPapers)
JEL-codes: D21 L20 (search for similar items in EconPapers)
Date: 2014
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