A SOURCES OF BUSINESS FINANCING
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A SOURCES OF BUSINESS FINANCING
1.1 BACKGROUND OF THE STUDY
Finance has been regarded as the daring of every company organisation, and its importance is doubled where it is required. Lease financing is quickly becoming one of a company’s most crucial forms of funding.
According to J.Iloh (2002), leasing is a source of long-term financing that involves a contractual arrangement between two parties: the lessor, who owns the assets, and the lessee,
who uses the asset in exchange for a periodic payment known as the lease rental payment. The lessee can use the assets with a small outlay of his own money.
Lease businesses are a type of specialised financial organisation that gives clients access to production assets such as automobiles, planes, and equipment via the writing of a lessee.
According to assets (1997), lessees allow businesses to use assets for a period of time at a cheaper cost than borrowing or owning the same asset stream of lease benefits from depreciating the leased asset.
1.2 STATEMENT OF THE PROBLEM
There are numerous methods and methods by which corporations in Nigeria set aside their limited financial resources to ensure that outmoded assets are replaced as and when required. However, in Enugu, many businesses use leasing to finance their operations.
1.3 AIM AND OBJECTIVES OF THE STUDY
1. To discover why leasing is preferable to other forms of business finance.
2. To investigate the impact of leasing on business formation.
3. To make recommendations on how to sustain and improve leasing’s success in sourcing business not only in Enugu but throughout Nigeria.
1.4 THE SIGNIFICANCE OF THE STUDY
The report comes at an opportune time, when all hands are on deck to boost the development and expansion of Nigerian industries.
It will also serve as a reference for the organised private sector in satisfying short-term needs with minimal capital investment. Furthermore, the study will serve as a guide for individuals who require a vehicle (car) but wish to avoid the obligations of owning such a vehicle, as they may consider leasing. Finally, it would be a coverage to finance scholars with other documented disciplines.
1.5 DEFINITION OF TERMS
Finance is short for “finance.” money to finance implies providing or raising the funds required to carry out an action.
Lease: A lease is a contractual agreement between two people in which the lessor lends his property to the lessee for a set period of time, either in installments or in bulk.
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