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. 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 company in Nigeria, as well as helping to the development of leasing in Nigeria, which cannot be overstated given the current economic situation.
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.
The decrease was caused by a payment delay. The lessor may not be able to complete the payment till he passes away.
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 want 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.
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.
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?
SIGNIFICANCE OF THE STUDY
In Nigeria, there is a great need to investigate equipment leasing as a source of funding. This study is required so that the practice, prospectus, and problems can be investigated and addressed by the authority in charge for the company’s smooth operation. This research will also provide insight on how to implement a smooth leasing system.
This research will also be beneficial in the school system, as it will add to the library’s academic offerings.
It will also serve as a good guide for anyone considering a career in leasing. It will also be very valuable to Marlum Construction Company policymakers in dealing with leasing management issues.
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 bound to run into financial difficulties. As a result, the researcher’s work 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.
LEASE: A legal agreement in which the property owner enables another party to utilize the property for a set length of time in exchange for pre-arranged payments.