LEASING, FACTORING AND RENTING WITH SIGNIFICANT GROWTH

14/02/2019

ESTIMATES FOR SPECIALIZED FINANCING IN 2018

LEASING, FACTORING AND RENTING WITH SIGNIFICANT GROWTH

Real Estate Leasing grows 37.3 percent.
Leasing of Movable Assets with a volume of 2.3 billion euros.
Factoring boosts production by 21.2 percent.
Renting with an increase of 17.5 percent.

According to the estimates of the Portuguese Association of Leasing, Factoring and Renting (ALF), in 2018 specialized financing products grew in a very positive way.

The projections revealed today show that the Leasing sector ended 2018 with a notable rise, especially in Real Estate Financial Leasing, which presented a demand 37.3 per cent higher than the one observed in 2017, amounting to a value of 1.1 billion euros.

Movable Assets Leasing also confirmed the positive trend, with a growth of 5.3 percent. Automobile Leasing contributed 1.5 billion euros and Equipment Leasing amounted to 767 million euros.

The ALF’s estimates also indicate that the Factoring sector registered a year-on-year growth of 21.2 percent, with ALF members taking 31.8 billion euros in invoices. Factoring's contribution to the internationalization of the Portuguese economy stands out, with Export Factoring gaining an increase of 24.5 percent, reaching 4.8 billion euros (while in 2017 it stood at 3.9 billion). Import Factoring showed an increase of 18.2 percent, totaling a production of 288 million euros.

Domestic Factoring also maintained its upward trajectory, with a production of 15 billion euros, which represents an increase of 19.5 percent. In this context, Factoring without recourse was decisive to reach this figure, with a production estimated at 9.7 billion euros (24.8 per cent more than in the previous year).

Confirming - a service with increasing demand, in which the factor makes payment to its customer's suppliers, and can take the form of an advance - also contributed positively to the growth of Factoring, with an expansion of 22.1 percent and one estimated total volume of EUR 11.7 billion.

Renting, according to estimates provided by ALF, grew by 17.5 percent in 2018, reaching a production value of 743 million euros (636 million of which relate to passenger cars and 107 million to commercial vehicles). The percentage of new cars acquired in Renting also increased 14.5 percent, which corresponds to a total of 37,494 passenger and commercial light vehicles purchased. At the end of 2018, the Renting companies member of ALF managed an estimated active fleet of 115,751 vehicles, corresponding to a book value of almost 1.8 billion euros.

For ALF President Paulo Pinheiro: "The growth of specialized financing in 2018 results essentially from the broad recognition of the advantages and benefits of Leasing, Factoring and Renting solutions compared to other less flexible options. For 2019, the outlook is also positive given the forecast for economic growth and rising demand from new customers, particularly small and medium-sized enterprises."

ABOUT THE PORTUGUESE ASSOCIATION OF LEASING, FACTORING AND RENTING With 35 years of existence, the Portuguese Association of Leasing, Factoring and Renting (www.alf.pt) is the representative association of the specialized financing sector in Portugal. Among its 30 members are the main institutions that carry out Financial Leasing, Factoring and Renting in Portugal.

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