Comparative Analysis of Financing Tools for Small and Medium-sized Companies in Russian Federation

Small and medium-sized businesses depend on both government financial support and bank lending. However, the last one is currently beginning to decline. The reasons for this are high interest rates and high loan overdue of these borrowers. The article discusses the use of alternative instruments for financing business entities, as well as their effectiveness in comparison with the use of bank lending. The purpose of this work is to analyze the effectiveness of new approaches to financing the activities of small and medium-sized companies. The need to strengthen the capital structure of small and medium-sized businesses and reduce their dependence on bank loans has become more urgent in the Russian Federation recently. The problem of financing in this sphere needs to be addressed in two aspects. It is important to restore the interest of credit institutions in lending to small and medium-sized businesses, and it is also necessary to create such conditions that business entities can diversify their sources of financing, in particular through the use of non-bank instruments. The current market situation and related uncertainties make it necessary to develop and adapt new financing tools: crowdfunding and corporate bonds.