Leasing, Factoring and Renting boost the treasury of the Portuguese business fabric, green economy and new forms of mobility

LISBON, December 4th, 2020 - Leasing, Factoring and Renting products have been positioning themselves as clear drivers of economic growth in Portugal and Europe. The resilience shown over the last few years reinforces their future importance and anticipates a positive response to the challenging context of the Covid-19 pandemic.

The three products have shown remarkable performance over the last few years, points out the study "Specialized Financing and the Portuguese Economy", developed by Deloitte in partnership with the Portuguese Association of Leasing, Factoring and Renting (ALF). Automotive Leasing registered an annual growth of 26% from 2013 to 2019, mainly driven by the corporate segment; Renting registered an average annual growth of 12% from 2013 to 2019; and Factoring presented in 2019 the highest level of production of the decade, highlighting the contribution of the international side, mainly Export Factoring, which between 2010 and 2019 increased approximately three times.

The analysis carried out by Deloitte also highlights the importance of specialized financing products in the economy in 2019. Last year, Leasing production represented 20.3% of the total number of new registrations sold in Portugal and 8% of the investment in Portugal, with vehicles acquired in Renting accounting for 14% of new registrations and Factoring credits representing approximately 16% of the national GDP.

The study addresses the historical evolution of Leasing, Renting and Factoring products, what they represent for the economy and what are the future trends, and also contemplates the perspective of ALF Members, which represent almost 100% of the sectors under analysis. Taking into account the intrinsic characteristics of these products, their importance to the business fabric and the Portuguese economy is highlighted, and it is essential that both the legal framework and the member institutions of ALF enhance these specificities. According to the Members, there are two trends to be highlighted: a high propensity for the development of the digital component; and an evolution of the offer in order to strengthen the capacity of the Institutions to respond effectively and in a personalized way to the needs and demands of Clients.

The study also states that the Leasing, Factoring and Renting sectors assume a fundamental role for the future of the company, namely in contributing to the management of the treasury of Portuguese companies, to the future of mobility, to environmental sustainability and innovation and as a driver for the transition to a green and circular economy.

In Portugal, the search for shared mobility solutions has been increasing, the concept of Mobility as a Service implemented in Cascais being one example.

At the same time, these products have a relevant impact in reducing the environmental footprint associated with road transport, facilitating the transition to more ecologically efficient fleets, powered by non-combustible energy and with less wear and tear. The commitment to achieve carbon neutrality in 2050, as well as the objective of developing a Circular Economy in Portugal, also naturally lacks a set of relevant investments, which by their nature can be supported by specialized financing products.

"The last years have been marked by the affirmation of some trends of transformation in the economy and society. We predict that specialized financing will play a crucial role as an agent of this same transformation process, namely in the progressive transition to fleet electrification, in the adoption of more sustainable energy sources for the economy's production process, in the dissemination of new mobility solutions, in the gradual transfer to a circular and green economy, and in progress towards Industry 4.0", explains Bernardo Ferrão, Deloitte's Associate Partner.

"Not leveraging these instruments for the benefit of the Portuguese economy is a disservice to the country; and we hope that this Study will be an added value not only for ALF and its Members, but also for all economic agents and public entities that legislate and decide on the future of Portugal," says Alexandre Santos, President of ALF.

 

Access the full study here [in Portuguese]

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