AS A SOURCES OF BUSINESS FINANCING. A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Finance has been described as the bold of any business organization and its vital need is double realized where it is Ladcing Lease financing is becoming one of most important sources of finance for a firm.
According to J.Iloh (2002) leasing is sources of long term financing involving a contractual agreement between two parties the lessor who owns the assets and the leases who is utilizing the asset in consideration of a periodic payment called lease rental payment. The lessee in able to use the assets with a limited outlay of his own find.
Lease companies represent a kind of specialized financial institution that provides customers with access to productions assets such as automobiles airplanes and equipment through the writing of lessee.
According to a assets (1997) lessee allow business to use asset some time at a lower cost than borrowing or owning the same asset stream of lease benefits form depreciating the leased asset the study would be taken this.
1.2 STATEMENT OF THE PROBLEM
There are so many ways and method by which companies in Nigeria set aside their Limited finance resources to ensure that the obsolete of their asset are change as and when due. But in Enugu many companies leasing in financing their business.
1.3 OBJECTIVE OF THE STUDY
1. To find out why lease is preferable to other sources of business financing.
2. To find out the impact of leasing on business formation
3. To recommend what can be done to maintain and enhance the success to leasing in sourcing business not only in Enugu but in Nigeria as a whole.