Demand for Specialized Financing continues to grow

Specialized financing continued to register positive results in 2015, according to the estimates released by the Portuguese Association of Leasing, Factoring and Renting (ALF). The figures analyzed reveal a production growth in Leasing, in Renting and in Factoring, in line with the tendency of gradual recovery of the national economy and of the levels of business investment.

“We were pleased to witness in 2015 that Specialized Financing continued to increase its importance in the support to the Portuguese economy, reinforcing its role as a catalyst for investment and in the treasury management of the Portuguese companies and other economic agents” stated Paulo Pinheiro, ALF’s President, adding that “the Portuguese companies have been increasingly benefiting from these products’ advantages, converging to a level of use verified in the more economically developed European countries”.

Leasing registered an estimated growth of 20% in the last year, when compared with 2014, totaling 2.29 billion euros in its support to the national investment. Towards this evolution, leasing of fixed assets contributed with a growth of 33% in the value of contracts, with the highlight of vehicles (+41% in comparison with 2014, totaling 920 million euros) and of equipments (growth of 25% relatively to 2014, totaling 682 million euros). The number of contracts in real estate leasing also showed an estimated increase of 10% in relation to the previous year, totaling 672 million euros in production.

“These results reconfirm once again that leasing is a financial solution which allows an adaptability that, in the current economic context is thoroughly enjoyed by economic agents, given the contracts’ flexibility in terms of duration, rents and forms of payment”, stated Eduardo Moradas, ALF’s Board Member in charge of Leasing.

In relation to Renting, 2015 ended with a total acquisition of 28.547 new vehicles (22.137 light passenger vehicles and 6.410 commercial), which revealed a growth of 8.2% compared with the previous year, representing a total production of 543 million euros, which signified a growth of 13% comparatively to the previous year. The automotive fleets managed by Renting companies amounted to more than 92.000 vehicles at the end of 2015, with a tendency to grow.

“These figures consolidate the growth in the demand for Renting solutions verified in the last years. The economic constraints for the acquisition of vehicles and the necessity to reduce operational costs in companies, have contributed towards the growth in the number of entities with an interest in this solution, due to the specific advantages it brings in these fields”, stated António Oliveira Martins, ALF’s Vice-President in charge of Renting.

Exporters bet in Factoring solutions

In 2015, factoring – the treasury support mechanism which allows companies to have a better financing of their exploration cycle, since it allows to anticipate receivables from its clients – has acquired a total of 22.9 billion euros in invoices, registering an estimated growth of 3.8% (847 million euros more), when compared with 2014.

Export factoring contributed towards this boost, registering a robust growth of 7% in 2015, with total turnover being responsible for managing collections of a growing portion of the commercial trade with foreign countries, to the tune of 2.72 billion euros (around 5.5.% of total national exports in 2015 were done resorting to the support and security of Factoring). It should be noted that Export Factoring takes place when the factoring institution acquires invoices that Portuguese suppliers (the factor’s client is the exporter) hold over foreign acquirers (the debtors).

In relation to Confirming factoring, the management of payments to the suppliers of companies, it represented 7.8 billion euros in Portugal, while domestic factoring was responsible for 12.3 billion euros.

Rui Esteves, ALF’s Vice-President in charge of Factoring noted that “with an ever increased preponderance, factoring is one of the favorite tools of companies when it’s time to export, because it decreases the risk for the exporter and professionalizes the collections process. As it is an economic activity that helps the export sector, Factoring has also contributed in this way to the very important and needed positive commercial trade balance, giving its contribution to the recovery of the national economy.”

For more information, please contact:

Business Development & Communication (BDC)

Carla Martins Ramos | cr@bdc.pt | 932 960 484

Susana Monteiro | sm@bdc.pt | 913 088 207

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