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First financial leasing company for Cambodia

GL Finance (GLF), the first and only financial leasing company in Cambodia, opened its 11th branch in Phnom Penh on Friday, covering all authorised Honda and NCX  dealerships in Phnom Penh and its vicinity.

GLF, in partnership with Honda NCX, helps customers buy their own motorbikes and provides services such as registration and insurance.

The leasing company focuses on motorcycling because it is a necessity in Cambodia as “people have to use the motorcycle for their transportation,” Mitsuji Konoshita, president of GLF, said during a press conference at their head office in Phnom Penh last Friday.

People in Cambodia are not yet familiar with financial leasing, but Konoshita said motorcycle leasing was more convenient and faster than getting a bank loan.

Laurent Notin, general manager of Indochina Research, said Cambodian people usually prefer to borrow money from friends or relatives rather than going to a bank or a formal organisation.

“One of the keys of success for this company is to change people’s behaviour,” he said.

“I guess that if they are successful in doing that, they will open the door to more competition.”

Sim Senacheert, president and chief executive of PRASAC microfinance institution, said they have many clients who ask for money to buy a motorcycle, but, according to him, microfinance institutions target all kinds of clients and provide loans for different areas.

According to Sim Senacheert, possible competitors could include motorcycle shop owners because some have started services similar to leasing, such as offering monthly instalments.

Neng Hak, managing director of Cambodia Motorcycling, said he has customers who want to purchase their own motorbikes but usually pay the whole price immediately.

He said he can let customers pay for the bike monthly but then the price increases “because I have to wait for the money”.

He said for example a customer who wants to pay for a bike worth $900 within a period of five months, the price could increase to $1,100.

GLF received its financial leasing licence from the National Bank of Cambodia in May this of year.

To contact the reporter on this story: anne.renzenbrink@phnompenhpost.com

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