LEASING AS A MAJOR FINANCING DEVICE FOR SMALL SCALE INDUSTRIES

Small-scale enterprises like Hapel Nigeria limited generally suffer from lack of adequate finance. The introduction of the structural adjustment programme compounded the problem such that the enterprise could hardly finance the fixed capital requirements.  In this circumstance, small-scale enterprise like Hapel Nigeria Limited would seek for a financing device that would enable them to obtain the use of required equipment without making outright payment. Leasing seems to be the answer. This study therefore, attempts to establish a case for leasing as a major financing device for small-scale enterprise by assessing the effectiveness of the source of finance available to them.In terms of review of related literature, financing means for small-scale enterprise like Hapel Nigeria Limited was discussed and the Nigerian bank for commerce and industry was seen as the greatest supplier of credit to small-scale enterprise. The concept and evolution of leasing was looked into and thus leasing was seen as a contract between a leasor and lessee giving lessee possession and use of a specific asset on payment of rentals over a period. In terms of methodology, the descriptive and historical research method is used. Data generated from the questionnaire administered and interviews were analyzed. Based on the analysis of data, some interesting findings were made. In the first place, it was found that many small-scale enterprises engage in manufacturing business and most of the small-scale enterprises about 99.9% of them were aware of leasing financing technique. Most of the small-scale enterprises acquire the use of their required equipments through lease transactions. It was also found that the levels of awareness among small-scale enterprise acquire the use of their required equipments through lease transitions. It was also found that the level of awareness among small scale enterprise like Hapel Nigeria Limited make effort to use lease financing techniques in their business transactions and this leasing has brought a lot of increase in their level of productivity. The conclusion based on the findings was that leasing should be increasingly used by small-scale enterprise to activate the problem of financing burden in small-scale enterprises. The researcher made some recommendations viz: The Central Bank should effect changes in its credit guidelines with respect to leasing. Secondly, adequate publicity should be mounted to maintain and increase the level of awareness of leasing among small-scale enterprises.

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