ALF reveals semester of recovery for specialized financing
ALL SECTORS GAIN COMPARED TO 2021 AND FACTORING ACCELERATES BEYOND 2019 FIGURES. RENTING ESCAPES RESTRICTIONS ON VEHICLE SUPPLY
The performance of Leasing, Factoring and Renting in the first half of the year aligned with the growth of the national economy, registering progress in all three sectors, compared to the same period last year. Apparently immune to the effects of the war at the beginning of the semester, specialized financing even surpassed, in some segments, figures for 2019, reveals the half-year data of the Portuguese Association of Leasing, Factoring and Renting (ALF).
The biggest gains are seen in Factoring, with an expressive rise in production, 27.1% beyond the same period of 2021, and about 20% above the pre-pandemic year, for a total of 20.1 billion euros.
Confirming had the most imposing growth, soaring 34.9% to €8.8 billion. This means an increasing use by clients to pay their suppliers through a financial institution, with the possibility of anticipating payment, improving cash flows for both Factor's clients and their suppliers. The response from ALF members has been firm, ensuring a Confirming output that is 42.4% higher compared to 2019.
The Domestic Factoring and International Factoring segments have also demonstrated strong growth in turnover, with increases of 21.8% and 21.7%, respectively.
The Leasing sector denotes a marginal growth, remaining at €1.1 billion, in relation to the first half of 2021. Looking at ALF data, Equipment and Vehicle Leasing presents itself as the downward pressure factor, with a drop of 4.4%, to an output of 697.2 million euros between January and June. On the contrary, real estate financing through Leasing increased 10.1%, to 408 million euros (still short of the 430 million euros of the pre-pandemic year).
In Equipment and Vehicle Leasing, investment in equipment stood at 235.2 million euros, in a total of 3,685 contracts, below the 279.8 million in the same period of 2021.
The growing restriction in the supply of new light vehicles may also have contributed to the drop in production in Vehicle Leasing. In financial leasing, the reading of the total of light and heavy vehicles shows a reduction of almost 900 vehicles financed, for a total of 12,279 vehicles.
This performance in Equipment and Vehicle Leasing follows the trend of the total car market in Portugal in this period. Data from the Portuguese Automotive Association (ACAP) point to a reduction in the registration of light and heavy vehicles of 9.4% in the 1st half of 2022.
The shortage of cars proved to be less penalizing for the Renting sector. In the first semester of this year, Renting grew 11.4% in number of new vehicles, to 13,569 units. These vehicles amounted to 326.4 million euros, growing 19.9% compared to the same period in 2021.
Analyzing figures for 2019, the last year without pandemic or lack of new cars, the sector shows increased resilience by registering, until the end of June, a growth in the value of vehicles purchased in 9.1%.
The fleet managed by the Renting companies amounted to nearly 124 thousand vehicles, a growth of 4.1% and 7.2%, compared to the 1st semester of 2021 and 2019, respectively. The performance in counter-cycle with the national car market proves the growing adherence of companies and individuals to the Renting model.
"The war in Ukraine, the persistent rise in inflation and the foreseeable risks of the disruption of gas supplies to industry and households in major European economies did not have a slowing effect on the recovery of specialized financing as a whole in the first half of the year. Although Leasing has apparently had adverse effects on the acquisition of vehicles, due to the semiconductor crisis, Renting has managed, through good management and the adaptability of the sector, to maintain growth", highlights Luís Augusto, president of ALF. "ALF members have accompanied the improvement of the national economy, reinforcing their contribution to the good management of companies' working capital through Factoring and to the formation of the Portuguese GDP in the sum of the three products".