Features And Advantages Of Loaning Of High Technology Corporations


In modern conditions of the banking business, special attention should be paid to projects that in the future will turn out to be highly profitable. Interesting borrowers for banking institutions can be high-tech corporations. These are enterprises, as a rule, of an innovative nature, which require large financial investments, but with a competent production and sales policy bring the maximum economic effect. In addition to super profits, they produce new, important products that improve the quality level of certain processes, provide citizens with jobs, therefore, the unemployment rate decreases and the macroeconomic effect in the state increases due to an increase in key macroeconomic indicators such as GDP, GNP, and national income, national product. Therefore, lending to high-tech industries is of particular interest to banks. Also, the lending procedure for high-tech industries is relevant and interesting for the state and, above all, in terms of the development of high-level technologies aimed at the socio-economic well-being of the state, in which these technologies will be applied if they are successfully implemented.

Keywords: Banking institutionhigh-tech corporationcreditoverdraftsyndicated loan


In a market economy, one of the company's success factors is the ability to finance a business: the terms of attraction and sources of resources determine the long-term results of the organization. A special role and importance should be noted when lending to corporations with a high level of technology, because, based on the specifics of their activities, they have some features: at the initial stage of operation, there are high costs, much larger than with a "startup" of an ordinary enterprise. Consequently, the amount of credit funds is necessary maximum for a long period. The return on investment in high-tech enterprises has a longer period than in ordinary ones, but with the correct management of a high-tech enterprise, the level of profit is large (Glinskaya et al., 2019).

Problem Statement

It is the difference in lending to high-tech enterprises from enterprises with other specifics that a banking institution should take into account when deciding whether to grant a loan. Various instruments for attracting borrowed capital can solve the problem of any difficulty level: bank loans, commercial loans, leasing, factoring and others. Lending to legal entities plays a significant role in the field of business financing, as well as financial organizations themselves are interested in increasing profits by attracting corporate clients. Thus, lending to legal entities is not only a necessary procedure, but also mutually beneficial.

Research Questions

The article discusses issues related to the characteristics of various credit methods.

  • The main questions - what are the advantages of banking institutions in lending to high-tech industries?

  • What lending techniques are best for lending to high-tech industries?

Purpose of the Study

The purpose of this study is a specific proposal by the authors to bank institutions for choosing a lending methodology for high-tech corporations with a detailed description of the lending benefits to corporations whose activities are associated with high-level technologies.

Research Methods

The current state characteristics of the lending level to legal entities are presented in Table 1 . For this, we used the statistical data of the Russian Federation Central Bank, presented on January 1, 2018–2019.

Table 1 -
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Thus, in 2019 relative to 2018, an increase in the lending total volume is observed - by 14.92%, however, for certain types of lending volumes, an abrupt trend is observed.

Developed by commercial banks for potential borrowers, loan products, firstly, demonstrate the peculiarities of capital circulation in various sectors of the economy, and the need to attract additional financial resources arising from this. On the other hand, this explains the need to maintain its own liquidity and achieve an appropriate level of return on assets and bank capital. In the banking practice of the Russian Federation, the following types of banking products are most widely used:

  • one-time urgent secured loans;

  • credit lines;

  • overdrafts;

  • bill loans;

  • syndicated loans;

  • factoring.

Each product is optimal for the situation. Consider existing banking products and analyze which of the presented products is best suited for lending to high-tech corporations. Features and benefits of each of these types of banking products are presented in Table 2 .

Table 2 -
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From the above it follows that in modern Russian banking practice, there are many types of credit services, each of which has its own characteristics and advantages (Rupeika-Apoga et al., 2018). But for lending to high-tech corporations, the best loan services from the above services will be: open credit line lending, syndicated loans, factoring (Sysoeva, 2017). Particular attention should be paid to the possibility of attracting syndicated loans by high-tech companies, since, as described earlier, high-tech corporations need large amounts of cash when they begin their functional activities (Posnaya et al., 2019). The executives of a bank institution, which the head of a high-tech corporation can apply for a loan from, may not be able to give out all the requested amount at once, but they see no reason to refuse a transaction. In such cases, a decision is made to issue a syndicated loan, that is, other bank institutions are involved for joint lending for the maximum amount of a high-tech corporation (Kokodey et al., 2018).


It should be concluded that the issuance of syndicated loans is effective for both the borrower and the lender (Mahboud, 2017). The first receives the necessary amount of funds to conduct their business, and the second - the maximum profit, since high technologies are extremely profitable, and banking institutions lend them at an increased rate and on certain conditions, since they consider these loans to be high-risk (Tihomirov, 2017). Thus, under positive conditions and circumstances, both parties get the maximum effect (Posnaya et al., 2019).

So, the capital of a banking institution acts as a guarantee of the stability of the material base, at the cost of raising funds. And loans are the key to the profit of a banking institution and continuous development, especially of an innovative nature. And only the capital base of a banking institution gives a start and starts a mechanism of passive and active operations, the financial stability of a particular bank and the banking system as a whole depends on its effectiveness.


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Publication Date

21 October 2020

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Economics, social trends, sustainability, modern society, behavioural sciences, education

Cite this article as:

Posnaya, E. A., Ditsulenko, O. I., Kolesnikov, A. M., & Shokhnekh, A. V. (2020). Features And Advantages Of Loaning Of High Technology Corporations. In I. V. Kovalev, A. A. Voroshilova, G. Herwig, U. Umbetov, A. S. Budagov, & Y. Y. Bocharova (Eds.), Economic and Social Trends for Sustainability of Modern Society (ICEST 2020), vol 90. European Proceedings of Social and Behavioural Sciences (pp. 402-408). European Publisher. https://doi.org/10.15405/epsbs.2020.10.03.45