SPECIALIZED FINANCING REACHES AN ALL-TIME HIGH WITH 48 BILLION EUROS IN SUPPORT FOR THE ECONOMY

The performance in 2023 of the three sectors represented by the Portuguese Association of Leasing, Factoring and Renting was the highest ever. Renting production exceeded one billion euros, with a strong growth of 37% in the number of vehicles leased, while factoring took on more than 44 billion euros in invoices.

The Portuguese Association of Leasing, Factoring and Renting (ALF) has just released the 2023 statistics for the three sectors in which it represents more than 90% of the Portuguese market, revealing a year-on-year growth of 5.9% in the support given to the national economy. The sum of 47.8 billion euros is equivalent to around 20% of Portugal's GDP in 2023.

In a consistent pattern, the three sectors represented by ALF closed 2023 with increases ranging from 5% in the value of Factoring receivables to a significant 53% in the value of new vehicles leased, as well as 8.5% increase in the value of Leasing investments. The 47.8 billion euros resulting from the sum of Leasing and Renting contracts, together with the invoices acquired by Factors in 2023, represents an increase of almost 2.7 billion euros compared to 2022. This increase is made up of a growth of 350 million euros in Renting production, 200 million in Leasing and a significant 2.1 billion euros in Factoring.

"The year 2023 defied all forecasts, combining a second conflict with an impact on Europe, uncertainty over the ECB's monetary policy and, in Portugal, the fall of a majority government and the calling of early elections. Despite everything, specialized financing showed robust growth, contributing to the growth of the Portuguese economy," says Luís Augusto, president of ALF, concluding: "The data for 2023 contradicts any pessimistic visions and ALF's projections for 2024, the year of our 40th anniversary, and reinforces the role of specialized financing in supporting the formation of GDP."

RENTING AND FACTORING WITH SIGNIFICANT GAINS

Factoring and Renting are clearly conquering the market. Factoring, which was worth 34.5 billion euros in 2021 and reached 42 billion euros the following year, ended 2023 with a total of 44.2 billion euros in receivables. In just two years, factoring performance increased by 28%, equivalent to around 10 billion euros. Of particular note was confirming (managing company payments to their suppliers), which grew by 7.4%, corresponding to an increase of 1,370 million euros over the previous year, and international factoring. Import factoring, which consists of supporting the payment of invoices from a domestic client to its foreign supplier, is the most prominent, surpassing the 2022 figure by 51%, with a jump from 360 million euros to 544.6 million euros. As for export factoring, which provides support in receiving from clients located abroad, it grew by just 2.4%, around 121 million euros more than the previous year, totaling 5.15 billion euros, very relevant in supporting national exports. In domestic factoring, recourse factoring remained stable, compared to a growth of 4.3% in non-recourse factoring.

At the same time, Renting continues to consolidate its position as a fleet management solution for companies and individuals. During 2023, renting put 36,000 new vehicles into circulation on Portuguese roads, for a value of over one billion euros, a significant 53% increase compared to the 667 million euros in new contracts in 2022. This increase is also the result of the growth in the average value per vehicle, driven by the growing number of electrified vehicles, and the inflation seen in the automotive sector. As with green leasing - which benefits the acquisition of equipment with a lower carbon footprint - the renting of plug-in hybrids and electric vehicles reinforces the role of this sector in the national decarbonization of mobility.

With this growth trend, which has been characteristic in recent years, the current fleet in circulation contracted through Renting reaches 2.48 billion euros in value, up by 18% over the previous year. In terms of number of vehicles, there are now 133,748 light vehicles circulating on Portuguese roads, more than 80% of which are passenger cars.

EQUIPMENT AND VEHICLE LEASING GROWS AND OFFSETS REAL ESTATE

During 2023, the only negative sign came in real estate leasing, although the 20.5% growth in equipment and vehicle leasing more than offset this decrease. Compared to 2022, real estate leasing fell by 14.7% to 686 million euros. Disturbing the performance of this product are constraints in the product's tax framework that keep lessors away from it and, of course, the increase in the European Central Bank's benchmark interest rates.

Meanwhile, equipment and vehicle leasing grew by 20.5% to reach an output of 1.87 billion euros. Cars account for the majority of this figure, with 24,533 light vehicles, worth 777 million euros, and 5,520 heavy vehicles, worth 491 million euros. Vehicles account for 68% of the volume of equipment and vehicle leasing, while equipments amounted to 602 million euros.