{"id":13838,"date":"2020-07-20T10:10:48","date_gmt":"2020-07-20T07:10:48","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=13838"},"modified":"2020-07-21T16:14:17","modified_gmt":"2020-07-21T13:14:17","slug":"improvement-of-credit-ability-management","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/improvement-of-credit-ability-management\/","title":{"rendered":"Golovko, O., Gubarev, O. & Ponomarova, A. Improvement of Credit Ability Management of Enterprises"},"content":{"rendered":"

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JEL Classification<\/strong>: G21<\/em>
\n<\/span><\/td>\n		DOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V21(2020)-08<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][vc_column_text]<\/p>\n

Golovko Olena<\/strong>, PhD in Economics, Associate Professor, Associate Professor of Finance, Banking and Insurance Department Kharkiv Educational and Scientific Institute of SHEI \u00abBanking University\u00bb, Kharkiv, Ukraine<\/p>\n

ORCID ID<\/strong>: 0000-0001-6502-4562<\/a>
\ne-mail<\/strong>: elena.golovko13@gmail.com<\/a><\/p>\n

Gubarev Oleksandr<\/strong>, PhD in Economics, Associate Professor, Associate Professor of Management and Administration Department, Kharkiv State Academy of Culture, Kharkiv, Ukraine<\/p>\n

ORCID ID<\/strong>: 0000-0002-7362-6456<\/a>
\ne-mail<\/strong>: gubarev.ao1966@gmail.com<\/a><\/p>\n

Ponomarova Alina<\/strong>, Master of Kharkiv Educational and Scientific Institute of SHEI \u00abBanking University\u00bb, Kharkiv, Ukraine<\/p>\n

ORCID ID<\/strong>: 0000-0002-4861-5229<\/a>
\ne-mail<\/strong>: aj.ponomarova@gmail.com<\/a><\/p>\n

Improvement of Credit Ability Management of Enterprises<\/h2>\n

 <\/p>\n

Abstract. Introduction<\/strong>. The article substantiates the necessity of credit management, reviews the concept presented by various researchers. The methods of credit worthiness are systematized by the different types. The critical analysis allowed us to formulate our own definition of “enterprise creditworthiness”. Through the \u00abfive c\u00bb rule the constituent criteria for enterprise\u2019s creditworthiness assessing were revealed. There were character, capacity to pay, cash, collateral and conditions.<\/p>\n

Purpose<\/strong>. Developing of theoretical provisions and practical recommendations for improving the enterprise\u2019s credit management level are the main article purposes.<\/p>\n

Results<\/strong>. Objective assessment of the financial company position and consideration of possible risks are the key factors in effective credit management, which can help to prevent unjustified borrowing, ensure timely and complete repayment of loans, reduce the risk of non-payment and improve the efficiency of management. Effective creditworthiness management requires the integration of the retrospective development and prospective analysis with a large-scale involvement of the economic-mathematical methods and modern information technologies. It\u2019s urgent to develop a comprehensive model of enterprise\u2019s credit management that would consider inflation risk, industry and production features of the entity.<\/p>\n

Conclusions<\/strong>. The methodical approach to estimate creditworthiness of enterprise has been proposed in the article for enterprises. We had analyzed the credit ratio in dynamics for PJSC \u00abKharkiv biscuit factory\u00bb. In our opinion, for improving the credit management level, the enterprise should pay attention to receivable management, setting a limit on receivables, the excess of which must cease to provide services to a debtor.\u00a0 However, it\u2019s still the major indicators for improving the quality of credit assessment are focusing on industry-specific business characteristics, business size and management quality assessment will help borrowers. So, the main positions and conclusions of the research, were given in the article, can be used in enterprise\u2019s practical activity.<\/p>\n

Keywords<\/strong>: financing; attracted capital; creditworthiness; management; bankruptcy diagnostics; methods of creditworthiness assessment; financial condition.<\/p>\n

References:<\/strong><\/p>\n

    \n
  1. Belykh, L. P. (2015). Enterprise restructuring (2nd ed.). Moscow: JuNY TY-DANA<\/em>, 399 [in Rus.].<\/li>\n
  2. Ghajducjkyj,\u00a0P. I. & Zhuk,\u00a0V. M. (2012). Transaction cost accounting is a significant factor in competitiveness in today’s economy. Oblik i finansy APK<\/em>, 3, 39-19 [in Ukr.].<\/li>\n
  3. Ghalasjuk,\u00a0V. V. (2002). Assessment of the borrower’s creditworthiness (comparison of credit conditions and borrower’s ability to generate FSC flows). Visnyk Nacionaljnogho banku Ukrajiny<\/em>, 11, 42-47 [in Ukr.].<\/li>\n
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  5. State Agency “Stock Market Infrastructure Development Agency of Ukraine”. Retrieved from: https:\/\/smida.gov.ua\/ [in Ukr.].<\/li>\n
  6. Dutchenko,\u00a0O. O. (2017). Consideration of industry factor in determining the credit rating of the borrower. Ekonomichnyj prostir,<\/em> 45, 148-154 [in Ukr.].<\/li>\n
  7. Zhuk,\u00a0V. M. (2012). Priority of accounting and financial component in attracting agricultural land to economic turnover. Zbirnyk naukovykh pracj Vinnycjkogho nacionaljnogho aghrarnogho universytetu<\/em>, 1 (56), 37-47 [in Ukr.].<\/li>\n
  8. Klemparskyi, M. & Kosarieva, I. (2017). Use of insurance in creation of the mechanism for prevention of banquilation of enterprises. Financial And Credit Activity: Problems Of Theory And Practice,<\/em> 2(23), 156-166. doi: http:\/\/dx.doi.org\/10.18371\/fcaptp.v2i23.121464.<\/li>\n
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  10. Jepifanov,\u00a0A. O. (2007). Assessment of creditworthiness and investment attractiveness of business entities. Sumy : UABS NBU<\/em> [in Ukr.].<\/li>\n
  11. Ponomarova,\u00a0A. (2019). Enterprise’s creditworthiness management. Perspektyvy rozvytku upravlinsjkykh system u socialjnij ta ekonomichnij sferakh Ukrajiny: teorija i praktyka <\/em>[Prospects for the development of management systems in the social and economic spheres of Ukraine: theory and practice], Vseukrains’ka naukovo-praktychna internet-konferentsiia [All-Ukrainian scientific and practical Internet conference]. Kyiv : KUBH, 63-67 [in Ukr.].<\/li>\n
  12. Private Joint-Stock Company “Kharkov Biscuit Factory”. Official web-site<\/em>. Retrieved from: http:\/\/biscuit.com.ua\/ [in Ukrainian].<\/li>\n
  13. Smoljak,\u00a0V.\u00a0A. Problems of improving the creditworthiness of a bank borrower. Retrieved from: http:\/\/www. rusnauka.com [in Ukr.].<\/li>\n
  14. Tereshhenko,\u00a0O. O. (2011). Financial activities of business entities. Kyiv : Znannia,<\/em> 554 [in Ukr.].<\/li>\n
  15. Kholodna, Y., Pustovhar, S., Morozova, N. & Pasechnik, I. (2018). Machine-building enterprises financial risks minimization models building. Financial And Credit Activity: Problems Of Theory And Practice<\/em>, 3(26), 341-348. doi: http:\/\/dx.doi.org\/10.18371\/fcaptp.v3i26.144281.<\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Received:<\/strong> 02 May 2020<\/p>\n

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    Golovko, O., Gubarev, O. & Ponomarova, A. (2020). Improvement of Credit Ability Management of Enterprises. Modern Economics<\/em>, 21(2020), 52-58. DOI: https:\/\/doi.org\/10.31521\/modecon.V21(2020)-08.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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    [vc_row][vc_column][vc_column_text] JEL Classification: G21 DOI: https:\/\/doi.org\/10.31521\/modecon.V21(2020)-08 [\/vc_column_text][vc_column_text] Golovko Olena, PhD in Economics, Associate Professor, Associate Professor of Finance, Banking and Insurance Department Kharkiv Educational and Scientific Institute of SHEI \u00abBanking University\u00bb, Kharkiv, Ukraine ORCID ID: 0000-0001-6502-4562 e-mail: elena.golovko13@gmail.com Gubarev Oleksandr, PhD in Economics, Associate Professor, Associate Professor of Management and Administration Department, Kharkiv State Academy
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