Equipment Leasing As A Source Of Finance In Construction Industry

Equipment Leasing As A Source Of Finance In Construction Industry

Abstract

The end of this study is to find out how the establishment of Equipment Leasing in the Federation has helped in backing investment. To carry out this study, four exploration questions were formulated. In this study, a questionnaire was used to collected applicable data from the staff of Marlum Construction Company, Emene, Enugu. The findings revealed that Marlum has a positive perception that the established of Equipment Leasing in the confederation helped in enhancement of investments while lessens also have positive perception, better perception in all the issues raised in the exploration work. The relative recent development of leasing in Nigeria as compared to other forms of finance have been said to be the reason for the stunning lack of information about it and the options it offers to the business concern in Nigeria. This lack of information is pitiful in that most members of the public aren’t indeed apprehensive of its presence in Nigeria. The need for organized and comprehensive information couldn’t be overemphasized.Furthermore, being new most investors aren’t really well informed as to the profitability or else of leasing as a finance option, hence the low position of enterprises that engaged in leasing which goes to emulsion the problem of the Nigerian investors not having important choice as to the stylish volition available to him. latterly, this study will go a long way in projecting the profitability and unborn prospects of leasing business in Nigeria and also contributing to the development of leasing in Nigeria which under the present profitable condition its desirousness can not be over emphasized.

Chapter One

Preface

Background Of The Study

outfit leasing started in Nigeria in early 60’s through off- reinforcement United Kingdom leasing companies. Awelewa( 1989,pp. 20) with the outbreak of civil war in 1967, these leasing sale came insolvable due to difficulties in exchange control measures introduced by the military Government.

The Marlum Civil Engineering and construction Company, Enugu isn’t an exception in the outfit leasing. The Marlum have been in actuality from 2002 to date in this leasing process.

outfit leasing was their main source of finance. The leasing increased their paid up capital. At a time it started to reduce due to the letter couldn’t meet up to the prospects of demand by the construction company. occasionally, the letter may not use the outfit as a result of deprecation occurance.

Delay in the payment caused the dwindle. The letter may not finish the payment until he failed.

Before leasing the outfit, the letter has to write the designated place where the outfit has to be used. The person has to be registered in a well- know company. The purpose of which the outfit you want will be indicated in the form.

utmost problems are encountered by Marlum Construction company is over used and breakdown of outfit.

The letter doesn’t give acceptable information about the outfit after used. When another letter comes to use the same outfit

the damages which have been caused by the former, will be noticed.

The company has been suffering from this because of instability in the use of outfit.

Statement Of The Problem

Marlum had been suffering fiscal problems as a result of the detention in payment by the letter and it had inversely denied them cash for working capital.

Some of the letter couldn’t meet up with the company demand in leasing out the outfit as a result of defined guideline.

The Marlum security officers weren’t always at their duty post and this negligence of duty created a lot of problems to the extent that they were present indeed when outfit is returned.

Marlum spends so important time and plutocrat in the courts because of the action of all types particularly with respect to recovery of bad debts or doubtful debts.

Purpose Of The Study

The once development of leasing in financing association and options it offered to marlum construction company Emene, Enugu.

still, in the purpose of the study, the experimenter intends to identify the miscalculations and possible results to similar.

To find out how the marlum had suffered fiscal constraints

To find out why the letter couldn’t meet up with the guidelines

To probe why security officers aren’t on their duty post when at work.

To find out how marlum had been suitable recover their debts.

Compass Of The Study

The experimenter encountered multitudinous difficulties ranging from finance, time consuming and particular comfort.

In as important as the experimenter is pupil and carries out the exploration work with a limited quantum of plutocrat, he’s bound to have fiscal problems hence the experimenter work needed important plutocrat for producing questionnaire or interview attendants and transportation. The fiscal problem averted the experimenter from traveling to other corridor of the country for effective data collection, hence only Enugu Metropolis was used.

Exploration Questions

Does Marlum suffer fiscal problems as a result of detention in the payment by the letter?

Do the letter meet up with the company demand in leasing out the outfit as a result of defined guideline?

Do marlum labor force spend so important time and plutocrat in the cause of recovering bad and doubtful debts?

The Signifance Of The Study

There’s a strong need to study the outfit leasing as a source of finance in Nigeria. It’s necessary that this study be done so that this practice, prospectus and problems will also be examined and dived by the authority in- charge for smooth handling of the company. This study will also give an idea into ways of under taking smooth leasing system.

This study will also be veritably useful in the academy system to enrich the academics in the library.

It’ll also serve as a useful companion for any person intending to go into leasing practices. It’ll also be veritably useful to the policy makers of marlum Construction Company in diving operation issue on leasing.

Definition Of Terms

There are some words considered specialized which if not defined might be in manacle to an ordinary man’s understanding and appreciation of the exploration work.

They are

LEASING- Any reference to leasing in this study is supposed to mean indispensable source of finance.

LESSOR- For the purpose of this study, this refers to some bone who grants a parcel.

Boarder- This refers to someone who’s granted a parcel or whom the property is been leased.

Parcel-Legal agreement under which the proprietor of property allows another party to use the property for a specified period and preliminarily arranged payments.