Factoring & Leasing

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 2021, factoring volume in Germany was EUR 309.4 billion. The factoring ratio reached 8.7 percent. This also indicates that Germany has significant growth potential in comparison to other countries that are reaching market saturation (Belgium 21%, Spain 17%, France 16%).

Grafiken_Finanzplatz_Factoring-2022

Factoring is a particularly well established SME financing instrument in Germany. It is also one that is increasingly used by companies of all sizes in times of crisis like the current coronavirus pandemic. Almost 95 percent of SMES are currently served in the segment up to EUR 10 million in factoring revenue. Small-ticket factoring recorded an annual increase of more than nine percent to rise to 28.5 percent for volumes up to EUR 10 million. Big-ticket items with an outstanding balance of receivables of EUR 50 million and more accounts for 46.7 percent of reported revenue volume.

Source: Deutscher Factoring Verband e.V. [German]

The leasing sector is Germany’s largest investor, generating annual investment volume of EUR 70 billion in 2021. The leasing share of equipment investment is 26.4 percent. Within Europe, the UK and Germany lead in terms of leasing sector investment & volume.

Grafiken_Finanzplatz_Leasing-2022

Small and medium-sized enterprises are important leasing clients.

The most important leasing clients are service companies (38%) and companies in the manufacturing sector (17%). Private households account for around 12 percent of leasing volume.

Source: The Bundesverband Deutscher Leasingunternehmen e.V. (BDL)