Factoring drives mixed Q1 for Portuguese specialised finance

Portugal’s specialised finance sector delivered mixed results in the first quarter of 2026, with record growth in factoring offset by weaker vehicle and equipment leasing activity, according to the latest figures from the Portuguese Association of Leasing, Factoring and Renting (ALF).

The association reported that factoring exceeded €14 billion in turnover during the first three months of the year – the highest first-quarter figure on record – while real estate leasing continued to expand and operational leasing (renting) fleets grew despite a slowdown in new vehicle registrations.

Factoring turnover increased by 21.7% year-on-year to €14 billion, underlining its growing importance as a source of working capital for Portuguese businesses.

Domestic factoring rose by 15.4% to €5.3 billion, while international factoring increased 9.5% to €1.58 billion. Export factoring climbed 5.6% to €1.42 billion, with import factoring surging 62% from a lower base.

Receivables reached €7.2 billion, a 30% increase on the first quarter of 2025, reflecting growing demand for integrated supplier payment management solutions.

The sector’s managed portfolio rose 8.3% to €11.65 billion, while total credit outstanding also increased by 8.3% to €10.58 billion.

By contrast, vehicle and equipment leasing declined by 8.5% year-on-year, with new business totalling €487 million.

Light vehicles remained the largest segment at €199.1 million, down 3.9%, although heavy vehicle leasing increased by 8.4% to €151.3 million. ALF estimated that leasing now finances around 60% of all heavy vehicles purchased in Portugal.

Despite the overall decline, demand for electrified vehicles continued to strengthen. Leasing volumes for battery electric vehicles rose 23.4% to €45.5 million, while plug-in hybrid financing increased by 41.5% to €37.5 million. In contrast, financing for petrol-powered vehicles declined by 9.2%.

Real estate leasing maintained positive momentum, with new business increasing 5% to €183.8 million.

Commercial property remained the largest asset class at €63.8 million despite a 15% decline, while residential real estate leasing fell 5.1% to €57 million. Industrial property was the strongest-performing segment, rising 23.4% to €30 million.

Combined, vehicle, equipment and real estate leasing financed investments worth €670.8 million during the quarter.

The renting market also produced mixed results. New vehicle production fell 10% year-on-year to 9,284 vehicles, while investment declined 6.5% to €255.5 million.

However, managed fleets continued to expand, reaching 147,115 vehicles, an increase of 6.2% compared with the first quarter of 2025. The fleet’s book value also grew by 10.7% to €3.2 billion.

Electrification remained a key growth driver. Zero-emission vehicles accounted for 30.2% of new vehicle production during the quarter, while the number of electric vehicles within managed fleets increased by 39.3% year-on-year to more than 29,500 vehicles.

Electric and plug-in hybrid models represented 51.6% of all new vehicles acquired within the renting sector during the first quarter.

“The results for the first quarter of 2026 confirm the structural role of the Leasing, Factoring and Renting sectors in financing and modernising the Portuguese economy.

“Factoring reached a new all-time high for a first quarter, Renting continued to accelerate the electrification of its fleet, and Real Estate Leasing maintained a solid growth trajectory – all in a quarter that saw declines in some segments. Given these products’ strong link to investment in the national economy, these developments may signal a more subdued economic outlook.”

The results suggest Portugal’s specialist finance market continues to play a central role in supporting business investment and cash flow, although the contrasting performances across the different sectors reflect the more cautious economic environment facing businesses during the first half of 2026.