Factoring hits new €14Bn record in Portugal

Factoring grew 21.7% in 1Q of 2026 with credit taken out on some €14Bn according to the Portuguese Association of Leasing, Factoring, and Renting (ALF).

According to data released this Wednesday by ALF, the factoring sector closed the first quarter of 2026 with a total of €14Bn in receivables purchased, representing a 21.7% increase compared to the €11.5Bn recorded in the same period of 2025.

Factoring is a financial transaction where a business sells its outstanding accounts receivable (unpaid invoices) to a third party (a factor), usually a bank or credit company, at a discount.

This provides the company with immediate cash flow to meet operational needs, while the factor assumes the responsibility of collecting the payments from the customers.

And real estate leasing volume reached €183.8 million between January and March, up 5% from the €175 million recorded in the same period last year.

On the other hand, the accumulated volume of equipment leasing in the first quarter fell by 8.5%, totaling €487 million.

Vehicle renting (long-term rental) also saw a decline; member companies recorded a total of 9,284 new vehicles—a 10% drop compared to the 10,321 units in the same period last year—while the investment value fell by 6.5% to €255.5 million.

According to ALF, the rental fleet is approaching 150,000 vehicles, with an increasing share of electric models. “Electric and plug-in hybrid vehicles accounted for 51.6% of the new vehicles acquired through rental agreements in the first quarter of 2026,” the association stated.

Source: ALF/ECO