Factoring & Leasing

Modern office Buildings in Frankfurt, Germany | © Getty Images/Westend61

Factoring & Leasing

Factoring

Factoring is a flexible and bank-independent concept for corporate financing. Liquidity is ensured through the ongoing sale of cash receivables from goods, deliveries and services.

In 2017, factoring volume in Germany was EUR 232.4 billion. The factoring ratio was 7.1 percent – the highest rate recorded in the German market to date. This also indicates that Germany has significant growth potential in international comparison (UK – 11%, Italy – 12%, Spain – 11%).

Factoring in Germany - Industry Shares in Factoring (2017, in %) | © Deutscher Factoring Verband e.V.

Factoring is a particularly well established instrument of SME financing in Germany. More than half of all turnover (57.8%) and almost all clients (92.7%) are in the factoring turnover segment with a value below EUR 10 million.

Source: Bundesverband Factoring für den Mittelstand [German]

Leasing

The leasing sector is Germany’s largest investor, generating annual investment volume of EUR 67 billion in 2017. The leasing share of equipment investment is 24.1 percent. Within Europe, Germany is in joint leading position with the UK.

Leasing in Germany - Major Leasing Markets in Europe (New Business – Leasing and Lease Purchase in EUR bn) | © Bundesverband Deutscher Leasing-Unternehmen e. V. (BDL)

Small and medium-sized enterprises are important leasing clients.

The most important leasing clients are service companies (37%) and companies in the manufacturing sector (20%). Private households account for around 11 percent of leasing volume.

Source: Bundesverband Deutscher Leasingunternehmen [German]

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