Debt Financing
- Credits: 4
- Ending: Examination
- Range: 20sP
- Semester: summer
- Year: 2
- Faculty of Business Economics with seat in Košice
Teachers
Included in study programs
Teaching results
The aim of the course is to acquire theoretical knowledge and practical skills in the field of debt financing of companies, especially through bank loans and guarantees, and to point out alternative financing options. Students will expand their knowledge in the field of corporate financial management and theory of loan decisions, including the practical application of acquired knowledge through the problem solving activities.
Knowledge:
• to understand the theory of loan decisions with the intention to expand knowledge of financial management of companies,
• to gain deeper and more comprehensive knowledge about specific types of loans,
• to know alternative forms of business financing,
• to understand the principles of securing bank loans,
• to understand the essence of corporate governance in debt conditions.
Skill:
• to analyze debt sources of corporate financing,
• to compare and evaluate debt sources of corporate financing in accordance with the needs of the company,
• to integrate the acquired knowledge into practical procedures when deciding on debt financing of a company,
• to discuss current problems and their possible solutions.
Competence:
• the ability to think responsibly in the intentions of corporate debt financing,
• to evaluate critically alternative methods of corporate debt financing,
• to predict creatively the possibilities of corporate debt financing.
Indicative content
Consultations:
Subject of debt financing and legal aspects of credit and credit financing.
Debt and debt financing of the company.
Credit decision-making in the financial decision-making of a company.
Bank loans as a tool of debt financing of the company - classification of bank loans, short-term loan financing.
Bank loans as a tool of debt financing of the company - long-term loan financing, methods of loan repayment.
Non-monetary loans of the company.
Alternative debt forms of business financing.
Company and bank in the process of credit management.
Securing of loans.
Financial management in terms of corporate debt.
Credit and interest rate risk management.
International loans and possibilities of their use in the company.
Bank loans in selected countries of the European Union.
Self-study:
Methods of debt interest.
Quantification of debt needs.
Debt costs.
Company debt limits.
Short-term loan financing - overdraft, promissory note loans.
Long-term loan financing - methods of loan repayment, current value of debt, mortgage loans.
Long-term loan financing - evaluation of the profitability of long-term loans.
Non-monetary loans of the company.
Alternative debt forms of business financing - factoring, forfaiting.
Alternative debt forms of business financing - financial leasing.
Bank loans for small and medium-sized enterprises in selected countries of the European Union.
Current issues in the field of corporate debt financing.
Support literature
Elementary literature:
1. VALÁŠKOVÁ, K. – KOVÁČOVÁ, M. – KUBALA, P. Dlhové financovanie. Žilina : EDIS,2019. 159 s. ISBN 978-80-5541-536-9.
2. WARD, A. M. Finance: Theory and Practice. 4th Edition. Chartered Accountants Ireland,2020. 912 p. ISBN 978-1-912350-36-0.
Supplementary literature:
3. BAČOVÁ, M. Základy bankovníctva. Bratislava : Ekonóm, 2013. 164 s. ISBN 978-80-225-3586-1.
4. HYRÁNEK, E. – JÁNOŠOVÁ, V. Dlhové financovanie. Praktikum. Bratislava : Ekonóm,
2012. 104 s. ISBN 978-80-225-3388-1.
5. ROGERS, S. Entrepreneurial Finance. Finance and Business Strategies for the Serious
Entrepreneur. Fourth Edition. McGraw-Hill Education, 2020. 384 p. ISBN 978-12-6046-
144-2.
6. HYRÁNEK, E. a kol. Dlhové financovanie. Bratislava : Ekonóm, 2012. 186 s. ISBN 978-80-225-3365-2. 7. Aktuálne vedecké a odborné články zaoberajúce sa súčasnými problémami z oblasti dlhového financovania.
Syllabus
Consultations: Subject of debt financing and legal aspects of credit and credit financing. Debt and debt financing of the company. Credit decision-making in the financial decision-making of a company. Bank loans as a tool of debt financing of the company - classification of bank loans, short-term loan financing. Bank loans as a tool of debt financing of the company - long-term loan financing, methods of loan repayment. Non-monetary loans of the company. Alternative debt forms of business financing. Company and bank in the process of credit management. Securing of loans. Financial management in terms of corporate debt. Credit and interest rate risk management. International loans and possibilities of their use in the company. Bank loans in selected countries of the European Union. Self-study: Methods of debt interest. Quantification of debt needs. Debt costs. Company debt limits. Short-term loan financing - overdraft, promissory note loans. Long-term loan financing - methods of loan repayment, current value of debt, mortgage loans. Long-term loan financing - evaluation of the profitability of long-term loans. Non-monetary loans of the company. Alternative debt forms of business financing - factoring, forfaiting. Alternative debt forms of business financing - financial leasing. Bank loans for small and medium-sized enterprises in selected countries of the European Union. Current issues in the field of corporate debt financing.
Requirements to complete the course
active participation on consultations, additional exercises, partial written exams
written exam
• active participation on consultations – 10 %
• elaboration of additional exercises – 10 %
• partial written exams – 20 %
• written exam – 60 %
Student workload
• participation in consultation – 20 hrs.
• self-study – 32 hrs.
• preparation for partial written exams – 22 hrs.
• preparation for written exam – 30 hrs.
Total: 104 hrs.
Language whose command is required to complete the course
slovak
Date of approval: 28.02.2022
Date of the latest change: 24.01.2022