FINANCE COMPANIES AND THERE FUTURE

The main businesses of the finance companies are leasing and pawning...Pawning business is already washout because of the unsecure condition of the pawning prices in the world market....After the Commedity crash in the world market...Finance companies foucs there business to leasing..

Specially Leasing over the Triwheels is the most profitable and most income generating business for them...Becasuse tri wheel owners there are the poor people and they don't have proper income verification documents to get a bank loan...

After this Implement of this new taxes..Triwheel prices also going up..The most income generating business of a finance company is getting dark....

I Personally recommend this is the ideal time to exit from finance companies....

Thanx

There is a substantial number of families who depend on income earned from three wheel hiring. Tax increases slow down registering of new units thereby reducing leasing business. Moreover, it is the commoners mode of transport & such tax hike is a direct hit to its expansion. On the other hand some feel uncomfortable of increasing number of three wheels as it has become a traffic nuisance.

I saw that last year the vehicle registrations have gone up by 60% or something similar. Think this hike is aiming to reduce the new registrations with the objectives of saving foreign exchange as well as reducing further traffic congestions.

Any way it is too early to comment on the impact of finance companies of such a move. Remember from 2nd half of this year banks are restricted to do leasing so leasing has to be mainly channelled through finance companies. Lot of variables to be included in any kind af analysis for banking and finance sector.

EquityChamp wrote:I saw that last year the vehicle registrations have gone up by 60% or something similar. Think this hike is aiming to reduce the new registrations with the objectives of saving foreign exchange as well as reducing further traffic congestions.

Any way it is too early to comment on the impact of finance companies of such a move. Remember from 2nd half of this year banks are restricted to do leasing so leasing has to be mainly channelled through finance companies. Lot of variables to be included in any kind af analysis for banking and finance sector.

No Sir,I am 100% sure there are no restrictions to do leasing business in banks after June...It is like a another CGT...

ok. Lets find out more. Anyway analysis is my hobby. This sector looks very interesting to me.

when we consider motor cars , less than 1000cc getting benefit from new tax model. so i think well manage finance companies has enough room.

Agree with EC and reader..
This will not have a major impact for well managed companies..These days finance companies have lots of new products..They are not depend on vehicles now.

Personally I don't like finance companies...If a Srilanka face financial sector crisis one day..The main reason will be le bona finance companies only...
They only focus their profits and they don't care about the customers wealth.As an example If a bank reject a loan or lease assume that the customer financial inability to pay the rental.Definitly finance company grant a lease facility with higher interest rate to him without care his income level and the repayment ability.After some time the facility goes to arreas section and they cease the vehicle and auction that and recover the due with profit.Profit mean excess amount of the lease due.
This is like more popular business for every finance companies.
So what about that innocent customer he loose all his money what he invest to that vehicle and his life style will be completly change.Now he become poor and he has nothing to do.Good example a incident happend in Ampara the lease customer of famous finance company attempt to sucide with inside the business premises becasue they ceaze his vehicle.
The finance companies are the real threat for Srilankan finacial sector and quality lending.
Thanx

Ow macho..Finance company kiyanne le bona yakku inna thenak..E geeyama ape salliwalata vithala thama apiwa eliyata yanna denne...BLOOD SUCKERS.....

Brinthan wrote:Personally I don't like finance companies...If a Srilanka face financial sector crisis one day..The main reason will be le bona finance companies only...
They only focus their profits and they don't care about the customers wealth.As an example If a bank reject a loan or lease assume that the customer financial inability to pay the rental.Definitly finance company grant a lease facility with higher interest rate to him without care his income level and the repayment ability.After some time the facility goes to arreas section and they cease the vehicle and auction that and recover the due with profit.Profit mean excess amount of the lease due.
This is like more popular business for every finance companies.
So what about that innocent customer he loose all his money what he invest to that vehicle and his life style will be completly change.Now he become poor and he has nothing to do.Good example a incident happend in Ampara the lease customer of famous finance company attempt to sucide with inside the business premises becasue they ceaze his vehicle.
The finance companies are the real threat for Srilankan finacial sector and quality lending.
Thanx

I will compare Bank and financial companies to government and private companies.Well managed finance companies out perform rigid banks.Performances of particular banks and financial companies gives the answer.Financial companies more flexible and divert into more profitable sector whether leasing or loan or anything else.When buget released.lot people put negative comments.Results are opposite side.Bank will be regid as government department.Good financial companies progress cannot be stopped.....

Yahapalanaya wrote:

Brinthan wrote:Personally I don't like finance companies...If a Srilanka face financial sector crisis one day..The main reason will be le bona finance companies only...
They only focus their profits and they don't care about the customers wealth.As an example If a bank reject a loan or lease assume that the customer financial inability to pay the rental.Definitly finance company grant a lease facility with higher interest rate to him without care his income level and the repayment ability.After some time the facility goes to arreas section and they cease the vehicle and auction that and recover the due with profit.Profit mean excess amount of the lease due.
This is like more popular business for every finance companies.
So what about that innocent customer he loose all his money what he invest to that vehicle and his life style will be completly change.Now he become poor and he has nothing to do.Good example a incident happend in Ampara the lease customer of famous finance company attempt to sucide with inside the business premises becasue they ceaze his vehicle.
The finance companies are the real threat for Srilankan finacial sector and quality lending.
Thanx

I will compare Bank and financial companies to government and private companies.Well managed finance companies out perform rigid banks.Performances of particular banks and financial companies gives the answer.Financial companies more flexible and divert into more profitable sector whether leasing or loan or anything else.When buget released.lot people put negative comments.Results are opposite side.Bank will be regid as government department.Good financial companies progress cannot be stopped.....

Ane yahapalanaya ...Gong reply karanna epa...Profit kiyanne finance companywala  witharak newei..Poli muthalali unta wada habbukarannawa..Profit hoyanna widiyak thiyennawanne ....Mang nam kiyanne un profit oyana vidiya werathi kiyala...Gini poliyata lease deela Minisunge badata galla ne profit hoyanne...Unta wada poli mudalali thaha gunayak hondai...

We are nt talking abt ethics of companies & bla bla coz u & me can not change those in SL..  if so almost all companies are blood sukers,So focus on their management strategies and performance..:-)

Suranga malli wrote:

Yahapalanaya wrote:

Brinthan wrote:Personally I don't like finance companies...If a Srilanka face financial sector crisis one day..The main reason will be le bona finance companies only...
They only focus their profits and they don't care about the customers wealth.As an example If a bank reject a loan or lease assume that the customer financial inability to pay the rental.Definitly finance company grant a lease facility with higher interest rate to him without care his income level and the repayment ability.After some time the facility goes to arreas section and they cease the vehicle and auction that and recover the due with profit.Profit mean excess amount of the lease due.
This is like more popular business for every finance companies.
So what about that innocent customer he loose all his money what he invest to that vehicle and his life style will be completly change.Now he become poor and he has nothing to do.Good example a incident happend in Ampara the lease customer of famous finance company attempt to sucide with inside the business premises becasue they ceaze his vehicle.
The finance companies are the real threat for Srilankan finacial sector and quality lending.
Thanx

I will compare Bank and financial companies to government and private companies.Well managed finance companies out perform rigid banks.Performances of particular banks and financial companies gives the answer.Financial companies more flexible and divert into more profitable sector whether leasing or loan or anything else.When buget released.lot people put negative comments.Results are opposite side.Bank will be regid as government department.Good financial companies progress cannot be stopped.....

Ane yahapalanaya ...Gong reply karanna epa...Profit kiyanne finance companywala  witharak newei..Poli muthalali unta wada habbukarannawa..Profit hoyanna widiyak thiyennawanne ....Mang nam kiyanne un profit oyana vidiya werathi kiyala...Gini poliyata lease deela Minisunge badata galla ne profit hoyanne...Unta wada poli mudalali thaha gunayak hondai...

You better put your money in charities..

Finance companies may also experience higher default rates and  account for higher provisions in the next quarter due to the flood damages.

SupunD wrote:Finance companies may also experience higher default rates and  account for higher provisions in the next quarter due to the flood damages.

History tells how good financial companies(LFIN,VFIN...etc not craps) performed in Tsunami,flood,etc...

Yahapalanaya wrote:

Suranga malli wrote:

Yahapalanaya wrote:

Brinthan wrote:Personally I don't like finance companies...If a Srilanka face financial sector crisis one day..The main reason will be le bona finance companies only...
They only focus their profits and they don't care about the customers wealth.As an example If a bank reject a loan or lease assume that the customer financial inability to pay the rental.Definitly finance company grant a lease facility with higher interest rate to him without care his income level and the repayment ability.After some time the facility goes to arreas section and they cease the vehicle and auction that and recover the due with profit.Profit mean excess amount of the lease due.
This is like more popular business for every finance companies.
So what about that innocent customer he loose all his money what he invest to that vehicle and his life style will be completly change.Now he become poor and he has nothing to do.Good example a incident happend in Ampara the lease customer of famous finance company attempt to sucide with inside the business premises becasue they ceaze his vehicle.
The finance companies are the real threat for Srilankan finacial sector and quality lending.
Thanx

I will compare Bank and financial companies to government and private companies.Well managed finance companies out perform rigid banks.Performances of particular banks and financial companies gives the answer.Financial companies more flexible and divert into more profitable sector whether leasing or loan or anything else.When buget released.lot people put negative comments.Results are opposite side.Bank will be regid as government department.Good financial companies progress cannot be stopped.....

Ane yahapalanaya ...Gong reply karanna epa...Profit kiyanne finance companywala  witharak newei..Poli muthalali unta wada habbukarannawa..Profit hoyanna widiyak thiyennawanne ....Mang nam kiyanne un profit oyana vidiya werathi kiyala...Gini poliyata lease deela Minisunge badata galla ne profit hoyanne...Unta wada poli mudalali thaha gunayak hondai...

You better put your money in charities..

Charities wala onne macho..pluwannam Maha banku bethumkaranayak wage set karala deepanko...

Yahapalanaya wrote:

SupunD wrote:Finance companies may also experience higher default rates and  account for higher provisions in the next quarter due to the flood damages.

History tells how good financial companies(LFIN,VFIN...etc not craps) performed in Tsunami,flood,etc...

Yahapalanaya...Umba octhchara dagalanawidiyata man ithanne Umbagawa Finance companies shares ema umbe protfolio eka pirenta wage thiyyay wage...

Suranga malli wrote:

Yahapalanaya wrote:

Suranga malli wrote:

Yahapalanaya wrote:

Brinthan wrote:Personally I don't like finance companies...If a Srilanka face financial sector crisis one day..The main reason will be le bona finance companies only...
They only focus their profits and they don't care about the customers wealth.As an example If a bank reject a loan or lease assume that the customer financial inability to pay the rental.Definitly finance company grant a lease facility with higher interest rate to him without care his income level and the repayment ability.After some time the facility goes to arreas section and they cease the vehicle and auction that and recover the due with profit.Profit mean excess amount of the lease due.
This is like more popular business for every finance companies.
So what about that innocent customer he loose all his money what he invest to that vehicle and his life style will be completly change.Now he become poor and he has nothing to do.Good example a incident happend in Ampara the lease customer of famous finance company attempt to sucide with inside the business premises becasue they ceaze his vehicle.
The finance companies are the real threat for Srilankan finacial sector and quality lending.
Thanx

I will compare Bank and financial companies to government and private companies.Well managed finance companies out perform rigid banks.Performances of particular banks and financial companies gives the answer.Financial companies more flexible and divert into more profitable sector whether leasing or loan or anything else.When buget released.lot people put negative comments.Results are opposite side.Bank will be regid as government department.Good financial companies progress cannot be stopped.....

Ane yahapalanaya ...Gong reply karanna epa...Profit kiyanne finance companywala  witharak newei..Poli muthalali unta wada habbukarannawa..Profit hoyanna widiyak thiyennawanne ....Mang nam kiyanne un profit oyana vidiya werathi kiyala...Gini poliyata lease deela Minisunge badata galla ne profit hoyanne...Unta wada poli mudalali thaha gunayak hondai...

You better put your money in charities..

Charities wala onne macho..pluwannam Maha banku bethumkaranayak wage set karala deepanko...

Thenda Ali babata.He will do charity for his family and horu kattiya around him.

Suranga malli wrote:

Yahapalanaya wrote:

SupunD wrote:Finance companies may also experience higher default rates and  account for higher provisions in the next quarter due to the flood damages.

History tells how good financial companies(LFIN,VFIN...etc not craps) performed in Tsunami,flood,etc...

Yahapalanaya...Umba octhchara dagalanawidiyata man ithanne Umbagawa Finance companies shares ema umbe protfolio eka pirenta wage thiyyay wage...

Yes of course.We are investors.We are in investors forum.You are in wrong forum if you want to do charity work.