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ABSTRACT

The purpose of this research is to determine how the Federation’s establishment of Equipment Leasing has aided in the financing of investment. Four research questions were developed to carry out this investigation.

A questionnaire was used to obtain pertinent data from the employees of Marlum Construction Company in Emene, Enugu for this study.

Marlum has a positive perspective that the establishment of Equipment Leasing in the federation aided in the improvement of investments, while Lessens also have a positive perception, better perception in all of the topics mentioned in the research work.

The striking absence of knowledge regarding leasing in Nigeria as compared to other types of finance has been attributed to its relative newness in comparison to other forms of finance.

. This information gap is so severe that most Nigerians are unaware of its existence. The importance of well-organized and comprehensive data cannot be overstated.

Furthermore, because most investors are new, they are not well informed about the profitability or otherwise of leasing as a financing option, resulting in a low number of leasing companies, further compounding the problem of Nigerian investors having little choice as to the best option available to them.

As a result, this study will go a long way toward forecasting the profitability and future prospects of the leasing sector in Nigeria, as well as contributing to the development of leasing in Nigeria, which is critical given the country’s current economic situation.

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

In the early 1960s, off-shore United Kingdom leasing corporations began leasing equipment in Nigeria. With the onset of civil war in 1967, these leasing transactions became unfeasible due to difficulties in exchange control procedures imposed by the military government, according to Awelewa (1989, pp.20).

Enugu’s Marlum Civil Engineering and Construction Company is no exception when it comes to leasing equipment. The Marlum has been in operation since 2002 and is currently undergoing a leasing procedure.

 

Their primary source of funding was equipment leasing. Their paid-up capital increased as a result of the leasing. It began to decline at one point since the lessor was unable to match the construction company’s demand expectations. As a result of depreciation, the lessor may decide not to use the equipment.

Before leasing equipment, the lessor must write down the specific location where the equipment will be used. The individual must be a registered employee of a well-known corporation. The purpose for which you desire the equipment will be specified in the form.

Overuse and equipment breakdown are the most common issues faced by Marlum Construction.

 

The lessor fails to provide sufficient information regarding the equipment after it has been utilized. If a different lessor wants to use the same equipment,

 

, the harm created by the former will be noticed.

 

Because of uncertainty in the utilization of equipment, the company has been suffering.

STATEMENT OF PROBLEM

Marlum had been experiencing financial difficulties as a result of the lessor’s late payment, and it had also denied them cash for working capital.

As a result of the restrictive guidelines, several lessors were unable to meet the company’s demand for leasing out equipment.

 

The Marlum security officers were not constantly on duty, which caused a slew of issues, to the point that they were still present when the equipment was returned.

 

Marlum spends a significant amount of time and money in court as a result of various sorts of litigation, notably with regard to the recovery of bad debts or questionable debts.

RESEARCH QUESTIONS

Is Marlum having financial difficulties as a result of the lessor’s late payment?

As a result of the restrictive guidelines, does the lessor meet the company’s desire in leasing out the equipment?

Do marlum employees devote so much time and money to resolving poor and questionable debts?

THE PURPOSE OF THE STUDY

The history of leasing in the financing industry and the choices it provided to Emene Construction Company in Enugu.

However, the researcher’s goal in this study is to uncover faults and possible solutions to them.

 

To learn how the marlum came to be in such a financial bind.

 

To determine why the lessor was unable to adhere to the rules.

 

To find out why security officers aren’t on duty when they’re supposed to be.

 

To learn how Marlum was able to recoup their loans.

SCOPE OF THE STUDY

The researcher faced various challenges, including financial, time-consuming, and personal comfort issues.

Because the researcher is a student working on a tight budget, he is certain to run into financial difficulties. As a result, the researcher’s task necessitated a large sum of money to produce questionnaires or interview guides, as well as transportation. Due to a financial constraint, the researcher was unable to go to other regions of the country to collect data, hence only Enugu Metropolis was used.

DEFINITION OF TERMS

There are some technical terms that, if not clarified, can make it difficult for the average person to comprehend and appreciate the research.

They are as follows:

LEASING: Any mention of leasing in this report is taken to represent an alternate source of funding.

LESSOR: A person who grants a lease is referred to as a lessee in this study.

LESSEE: A person who has been awarded a lease or to whom the property has been leased.

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