Features of financing the activities of a construction organization

The construction industry makes a significant contribution to the GDP of the Russian Federation. It is one of the catalysts for the growth of the national economy. These facts underline the relevance of the topic of financing the activities of construction organisations. Nowadays, companies are faced with problems in financing their activities such as expensive equity, a significant increase in interest rates on loans, and a lack of investment. In addition, financial risk has a significant impact on construction organisations. One of the industry features is dependence on borrowed sources of financing. At the same time, the use of bank loans poses a number of strict requirements and conditions, which are not always beneficial for construction companies, so they can use other methods of debt financing, for example, issuing of bonds and digital financial assets, leasing. It is worth noting that the use of any of these methods entails the emergence of significant credit risk for the company, therefore, management should face not only the task of effectively using debt financing, but also financial risk management. In the presented article, the authors consider the specifics of the sources of financing for activities of construction organisations using one of the market leaders’ example - PJSC “PIK SHB”.