DB&G Merchant to offer lease financing option
published:
Friday | February 22, 2008
Susan Gordon, Business Reporter
Tanya Ho-Shue, general manager at Dehring Bunting and Golding Merchant Bank. - File
DB&G Merchant Bank, a subsidiary of the newly renamed ScotiaDBG, is targeting loan growth of 25 per cent by diversifying into lease financing within the second quarter or by April.
The new product targets companies wanting the use of equipment or commercial vehicles for their business operations without having to invest capital to acquire the assets.
"We expect it to contribute significantly to our growth rate on loans," said ScotiaDBG vice-president and general manager of the merchant bank, Tanya Ho-Shue.
The merchant bank hopes to grow loans by $1.6 billion. Ho-Shue said the lease product should contribute about a third of that income.
Subscribers to the new product, she said, would have the added benefit of expensing the payment to offset taxes.
For the financial year ending October 2007, the merchant bank contributed $71 million or 10 per cent of Scotia's DB&G Group total income stream and realised annualised growth of 17.5 per cent.
Included in the list of items available for lease financing are plant and equipment, commercial vehicles, computers on a smaller scale, buildings, furniture and fixtures, equipment in farming and the agriculture sector and construction and industrial equipment.
The maximum term of the lease will be 60 months, and financing will be in foreign currency.
