Record growth in leasing. Good forecasts for 2024

Luc Williams

In addition to the record value in the transaction in 2023, the Polish Leasing Association also announced that the total value of investments financed by leasing over the 30 years when the lessors organization was established reached PLN 1 trillion.

– Another record year is behind us, in which mainly micro and small enterprises operating in Poland decided to finance their investments using leasing. The value of assets used by clients of leasing companies reached PLN 200 billion. This confirms our belief that leasing is an important tool to drive the economy. In 2023, the highest increase – by 35%. y/y – we recorded in the group of light vehicles, i.e. passenger cars and delivery vans up to 3.5 tons GVM. – says Monika Constant, president of the management board of the Polish Leasing Association.

ZPL representatives emphasize that in Poland – compared to other EU countries – leasing is the preferred method of financing investments for entrepreneurs, and the results for 2023 – PLN 102 billion 514 million indicate an “optimistic growth trend”.

Motor cars

Leasing transactions dominate among the concluded contracts. Their value at the end of 2023 amounted to PLN 89.1 billion. The total value of loan agreements in the industry in 2023 amounted to PLN 13.4 billion.

– Everywhere in the world where free market rules apply, the largest group of leasing products recipients are small and micro companies, i.e. customers with a turnover of up to PLN 20 million. In Poland, at the end of 2023, they have almost ¾ of the market, 69.4% to be precise. share in the customer structure of leasing companies. – says Paweł Pach, president of the management board of PKO Leasing, chairman of the ZPL Council.

The largest (48.5%) group of customers are micro companies, i.e. customers with a turnover of up to PLN 5 million. – Larger clients, with turnover from PLN 5 to 20 million. today they constitute 20.2 percent. and 29.2 percent Companies with a turnover above PLN 20 million have a share in the customer structure of leasing companies, enumerates Paweł Pach.

The leading sector for the Polish leasing industry is the financing of light vehicles. In terms of amounts, it is 48.9 percent. the entire market, and together with trucks – 70.9 percent, according to ZPL. Machines and other equipment account for 24.4 percent. value of contracts, and for other transactions (including real estate) nearly 5%.

In the light vehicle group, 85 percent are passenger vehicles, while 15 percent delivery vans and trucks up to 3.5 tons GVW. Light vehicles mostly (60.7%) went to the smallest companies with an annual turnover of up to PLN 5 million. Among trucks, leasing is most often used to finance the purchase of tractor units (54%), semi-trailers and trailers (22%), vehicles over 3.5 tons GVW (19%) and buses (5%). However, in the machinery market, leasing was most often used to finance agricultural machinery (24.7%), construction equipment (17.5%), plastics production and metal processing machinery (12.6%), and medical equipment (5.1%). percent) and food machines (3.5 percent). In this group, other machines and devices, such as elevators, ice cube makers, commercial containers and knitting machines, constitute 33.6%. market. As ZPL notes, machines, to a much greater extent than vehicles, are financed with loans and new equipment dominates here.

Forecasts for 2024

Paweł Pach points out that the industry is strongly counting on a positive breakthrough in 2024 thanks to the acceptance of the documentary form (not only in writing) as an equal form when concluding a leasing contract. Thanks to this, external financing will become more convenient for the entrepreneur.
– The industry is waiting for this step, it is adequately prepared and determined – said the president of PKO Leasing.

However, 2024 brings changes that may have negative consequences for the industry. – Legal changes that entered into force on January 7, 2024 will affect the offer and financing process for clients operating as sole proprietorships. This applies in particular to farmers, i.e. natural persons running a farm. Farmers’ access to financing was limited, and a number of additional requirements were imposed on leasing companies. This may lead to a significant increase in the cost of this product. From the perspective of our clients, this action is non-market and causes significant turbulence in this segment – adds Paweł Pach.

On January 7, the regulations of the Act of April 14, 2023 on consumer pawn loans came into force.

2023 also brought a significant increase in the prices of contract items, which increased the value of the entire leasing market. As ZPL experts forecast, in 2024 the prices of financed fixed assets will no longer grow so dynamically. The industry’s expectations for further double-digit market growth are based primarily on the real investment demand of enterprises in response to the growth opportunities and expectations of the economy, in an environment of falling interest rates and decreasing costs of financial services.

The leasing industry is also counting on systemic changes that will strengthen its position on the market, e.g. recognizing leasing (including operational leasing) as an acceptable form supporting the absorption of EU funds in all EU programs. It is important for the industry to constantly strive for the digitization of leasing, understood as the actual digitization of the process of obtaining financing in the form of leasing, from the application submitted by the lessee, through its handling – largely automated – to the conclusion of the contract, its handling and settlement.

ZPL also points to the good mood of Polish entrepreneurs, even though the war in Ukraine brought a significant decline in PMI readings. As representatives of the organization note, at the same time, the broader economic climate index of the Central Statistical Office, which takes into account the ratings of smaller and medium-sized companies, improved to a greater extent.

ZPL forecasts indicate that, excluding real estate, the total assets financed by leasing companies in 2024 may exceed over PLN 118 billion. According to the organization’s experts, this year will bring economic development based on strong consumer spending and growing corporate investments, which will clearly support the results of the leasing market.

ZPL information comes from reports of member companies and cooperating organizations. Thanks to this, together with the revaluation, as the organization informs, its reports cover 100 percent. Polish market. The organization brings together 32 leasing companies and the Polish Vehicle Rental and Leasing Association.

Study on access to finance for enterprises (SAFE) – December 2023 / Media / European Commission


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