The spurt in the economy has fuelled a renewed demand for credit from the financial sector. Some of the quickest credit providers in the market, the leasing companies, have seen growth rates that have comfortably outstripped the double digit growth rates in the financial sector.
But the face of leasing is also fast changing with the emergence of commercial banks as industry leaders and new avenues of raising funds to finance business.
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rnThe yards of the leasing companies have always been full in recent times, because a few years ago a lot of leases went bad and most of the vehicles were seized. rn
rnEvery month many vehicles go under hammer to recover the outstanding from overdue leases. rn
rnBut of recent, business volumes have rocketed while leases going bad have sharply come down. Whatever the reason, the auction yard continues to be a busy.rn
rnLeasing companies say that the pick up in leasing business is largely due to the improved economic climate in the country.rn