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EQUIPMENT LEAASING AS A SOURCE OF FINANCE IN CONSTRUCTION INDUSTRY

Format: MS WORD  |  Chapter: 1-5  |  Pages: 66  |  1115 Users found this project useful  |  Price NGN3,000

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CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND TO THE STUDY

Equipment leasing started in Nigeria in early 60’s through off-shore United Kingdom leasing companies. Awelewa (1989, pp.20) with the outbreak of civil war in 1967, these leasing transaction became impossible due to difficulties in exchange control measures introduced by the military Government. The Marlum Civil Engineering and construction Company, Enugu is not an exception in the equipment leasing. The Marlum have been in existence from 2002 to date in this leasing process. Equipment leasing was their main source of finance. The leasing increased their paid up capital. At a time it started to dwindle due to the lessor could not meet up to the expectations of demand by the construction company. Sometimes, the lessor may not use the equipment as a result of depreciation occurance. Delay in the payment caused the dwindle. The lessor may not finish the payment until he died. Before leasing the equipment, the lessor has to write the designated place where the equipment has to be used. The person has to be registered in a well-know company. The purpose of which the equipment you want will be indicated in the form. Most problems are encountered by Marlum Construction company is over used and breakdown of equipment. The lessor does not give adequate information about the equipment after used. When another lessor comes to use the same equipment , the damages which have been caused by the former, will be noticed. The company has been suffering from this because of insecurity in the use of equipment.

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EQUIPMENT LEAASING AS A SOURCE OF FINANCE IN CONSTRUCTION INDUSTRY

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