Czech leasing companies are
expected to continue to offer more credit and factoring as they
diversify their product offerings during 2011.
A total of 27 CLFA members provided
loans and other non-leasing financial products amounting to CZK
18.37bn in the first nine months of 2010, up by 10.3% from the same
period a year earlier. Factoring increased by 17.9% to CZK 79bn in
the period.
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Jiri Pulz, secretary general at
CLFA, expected the switch to impact total leasing volumes in
2011.
“We don’t expect any large
increase, because most leasing companies switched to providing
credit as an additional financial product,” Pulz said.
“They have broadened their
activities in the credit area, but at the same time are keeping
their leasing offer. This means that the volumes of our members are
still quite large, but to the detriment of leasing.”
The EU Consumer Credit directive
will be applied to consumer leasing from January 2011.
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By GlobalData“It will affect consumer leasing
because the administration and regulation is so strict that it
becomes simpler to finance in the form of consumer credit than
through consumer leasing,” Pulz said.
It will be a blow to Czech consumer
leasing, although this only represented 5% of total leasing during
2010.
“We will lose another 5% of our
leasing volume to consumer credit, being offered by the same
companies,” said Pulz.
“However, we expect a slight rise in investments, which will be
financed through leasing, so we expect some growth in leasing next
year.”
See also:
Czech leasing off critical list
