Portuguese factoring grows 20.6% as leasing markets show mixed performance

Portugal’s factoring market recorded strong growth in the first half of 2026, with receivables purchased increasing by 20.6% to €28.8bn, according to new figures from the Portuguese Association of Leasing, Factoring and Renting (ALF).

The latest data reveal contrasting performances across the country’s specialist finance sectors, with real estate leasing returning to growth while equipment and vehicle leasing and renting recorded declines in new business.

Factoring growth driven by confirming

Factoring volumes increased from €23.9bn in the first half of 2025 to €28.8bn in the corresponding period this year, supported by strong growth in confirming, or reverse factoring.

Confirming volumes rose by 30.6% to €14.4bn, accounting for more than half of total factoring activity.

Domestic factoring increased by 11.9% to €11.1bn, while international factoring grew by 12% to €3.3bn.

Within international factoring, export factoring rose by 9.4% to €3bn, while import factoring recorded particularly strong growth of 45.1% to €317m.

The outstanding credit portfolio reached €11.1bn, an increase of 8.1%, while total receivables under management grew by 8.5% to €12.3bn.

Equipment leasing declines as real estate recovers

Equipment and vehicle leasing production fell by 6.2% to €1.1bn during the first six months of 2026.

However, performance varied across vehicle categories, with heavy vehicle leasing increasing by 9.4% to €294m, while light vehicle leasing declined by 4.5% to €456m.

The transition towards electrified vehicles continued, with battery electric vehicles and plug-in hybrids accounting for 43.9% of light vehicles financed through leasing, compared with 35.4% a year earlier.

Electric vehicle financing increased by 27%, while plug-in hybrid financing grew by 10%.

Meanwhile, real estate leasing rebounded, with new production rising by 15.1% to €412m, reversing the 19% decline recorded in the previous year.

Industrial property leasing increased by 63.4% to €68m, while residential property leasing rose by 14.3% to €126m. Commercial property leasing, however, declined by 23.2% to €118m.

Together, equipment, vehicle and real estate leasing financed investments worth approximately €1.5bn, down 1.1% year-on-year.

Renting fleet expands despite lower new business

Portugal’s renting sector recorded €499m in new production, a decline of 6.3%, with 18,014 new light vehicles contracted, down 7.3% compared with the first half of 2025.

Despite the reduction in new contracts, the total fleet managed by renting companies increased by 6.8% to 149,788 vehicles, with a combined value of €3.3bn, up 9.9%.

Zero-emission electric vehicles accounted for 28.4% of new renting acquisitions, an increase of 3.3 percentage points, and represented 21.6% of the total managed fleet.

“The first half of 2026 reveals a sector characterised by contrasting trends. Factoring and Confirming are strengthening their role in corporate cash flow management, and Real Estate Leasing is recovering.

“Meanwhile, Equipment and Vehicle Leasing and Renting, despite a more challenging market environment, continue to play an important role in financing the economy and accelerating the transition towards lower-emission mobility.”

The findings follow Leaseurope’s 2025 Annual Statistical Report, which showed that European leasing and renting production reached €464bn in 2025, an increase of 3.2%.

Portugal remains an important market for asset-based finance, with leasing and renting supporting 20% of equipment investment and 4% of real estate investment, the latter representing the highest penetration rate among countries reporting data to Leaseurope.