Micro financing boosts leasing portfolio of LB Finance

Micro-financing boosts the lending portfolio of LB Finance - An impressive 40 percent of disbursements through micro loans LB Finance announced that 40 percent of its total disbursements were in micro-finance during the financial year ending March 31.

The momentous rise in this less explored sphere of financing is said to be attributed to the Company’s aggressive and perceptive strategy in taking leasing to the informal economy, serving people with little access to the financial domain.

The just concluded financial year saw the company laying a special focus on pawning facilities, lease financing for 3-wheelers and agro-based equipment. With a solid presence in all the main towns in Sri Lanka, LB Finance has throughout the past year extended its presence to the more remote areas of the country where villagers have limited options when it comes to financial solutions.

Periodical promotions

LB Finance currently operates 57 pawning centres across the island, including in far-flung areas like Pitigala, Mahiyanganaya, Matale, Moneragala and Embilipitiya, affording small-scale borrowers the services of one of the top financial institutions in the country. The Company also hopes to soon take its services to the east as well, with the opening of a branch in Batticaloa.

The Company realizes too that its significant forays into micro-financing would play a considerable part in the country’s development drive. For example, the periodical promotions in three-wheeler leasing conducted at specially-picked towns throughout the island give people in the provinces the opportunity to lease a three-wheeler almost within an hour, thanks to an on-the-spot credit evaluation.

Three-wheelers are a source of income for many a people in struggling localities; used for not just hires but other transport purposes as well, hirers now have the chance to be owners, in just a short period.

Repayments through 57 outlets which include main branch, pawning centres and service centres and its online payment facility give better access to clients.

“The management saw it fit to concentrate more on short-term income generating assets, small investments that mitigate risk and would also help the Company be directly involved in helping provide a source of employment,” said Lakshman Wanniarachchi, Manager - Micro Finance. “There are so many untapped areas with much potential for growth, not just for a business but especially individuals,” he said.

Benchmark

LB Finance prides itself in setting benchmarks for the financial industry, offering a range of products including fixed deposits, hire purchase, micro-finance, agro-finance, letters of guarantee, finance leases, pawn broking, and the express Western Union international money transfer facility. LB Finance is a public listed company, registered with and monitored by the Central Bank of Sri Lanka.

B.M.Amarasekara, the Chairman of the company is an Attorney-at-Law by profession and possesses over fifty years of experience in the field of law. Dhammika Perera remains the Company’s major shareholder and Deputy Chairman. Renowned entrepreneur and investor.