Lending to corporations: current realities and challenges

Relevance of the research topic. In today’s conditions of financial globalization, the economy of
any country is unable to function successfully without corporate access to credit. Such a source of
financial resources is a bank loan, which is designed to diversify the activities of economic entities,
modernization of equipment and investment projects.
Formulation of the problem. In order to increase the efficiency of management and ensure
profitability, it is advisable for companies to study the conditions of the loan and determine the economic
consequences of such financing.
Setting goals and objectives of the study. The purpose of the study is to substantiate the
directions of effective attraction of bank loans. To achieve this goal, the following tasks are set: to
analyze the current practice of bank lending in the corporate sector and to analyze the conditions of
lending by Ukrainian banks.
Research methods. The method of analysis and synthesis, method of comparison, method of
generalization of data, analytical and system approach are used in the work.

Results of the research. The peculiarities of lending to small and large enterprises and the role
played by the life cycle of enterprises in providing bank loans are identified. The analysis of bank loans
granted to non–financial corporations is carried out, their structure by maturity is also given. Banks
have been rated on the level of reliability in terms of loans to corporate clients.
Field of application of results. The results of scientific research can be used by domestic
corporations to conduct operations to attract bank loans on favorable terms.
Conclusions. For the successful and efficient operation of the corporation, it is important to
determine the need to raise additional funds on terms that meet the needs and goals of the enterprise.
In general, corporations use borrowed funds for development, expansion of production capacity,
financing of working capital, search for new markets, new business lines and more.