https://doi.org/10.36719/2706-6185/42/36-4
Nail Gasimzade
Azerbaijan University of Architecture and Construction
Ph. D. student
https://orcid.org/0009-0001-1311-4512
The Theoretical and Methodological Foundations of Credit Instruments
in the Construction Sector: Development and Optimization Perspectives
Abstract
The article looks into the theoretical and methodological basis of credit instruments within the construction sector, with emphasis on their functions in processes of financial management and development. The present analysis has pointed out that the credit tools, if well-structured and properly applied, increase the financial stability and investment capacity of the sector. Drawing from capital structure and asymmetric information theories, this study identifies the credit mechanism in enhancing project efficiency and responding to risk management challenges. The research also shows that leasing mechanisms, especially for small and medium-scale projects, are very feasible but require further optimization in large-scale infrastructure projects. This indeed calls for a diversification in the credit instruments and an increase in the strategic risk management approach, together with integrating various financing models that are innovative, with a view to enhancing long-term sustainability in the sector. Recommendations have been put forth with a rationale to solve these challenges at the present time and offer guidance on how best to orient local practices in line with international standards and thus support vigorous economic growth within the building sector.
Keywords: credit instruments, leasing mechanisms, financial stability, risk management, investment projects.