COMMERCIAL CREDITING OF DOMESTIC ENTERPRISES

Abstract

The problems of the financial market and decline in the welfare’s level cause the prevalence of commercial credit among the business entities of Ukraine. The cash deficit as a result of deferred payment allowed for customers is often financed by accounts payable. Despite of this, the functioning of domestic enterprises is characterized by inconsistency of volumes, terms of repayment of the given and received commercial credit. Due to the set goal this study characterizes the specifics of the implementation of the general principles of crediting: urgency, payment, targeted use, security, return – in the process of accounts receivables (payables) formation at the enterprise. The article presents the classification of commercial credit types, its positive and negative sides. The analytical part investigates the dynamics of accounts receivables (payables) of domestic enterprises for period 2013-2017, their share in the formation of assets (financial resources) of business entities, turnover ratio of the given and received commercial credit. The influence of these items on the financial state of Ukrainian enterprises is determined, in particular on their liquidity and profitability level. The identified trends in the commercial crediting in Ukraine consist in exceeding the volume of accounts receivable over payable, reducing and matching the term of days sales and payable outstanding, the growing of the financial results. But the level of domestic enterprises’ liquidity over the past 5 years remains low.