One of the most traditional sources of financing for lessors has always been bank loans, but amid the crisis, access to credit resources has been significantly limited. Some lessors claim that many banks have stopped working with leasing companies altogether. The deterioration of the funding situation inevitably leads to a decrease in the volume of leasing business, an increase in the cost of leasing products, and the withdrawal of some companies from the market.

It is becoming increasingly difficult for lessors to obtain funds for their activities
Photo: Evgeny Pavlenko, Kommersant / buy photo

The funding situation for leasing market players is as far from ideal as possible. Due to the reduction in the supply of money and limited access to credit resources for leasing companies, the volume of investment in the industry began to fall rapidly. Lessors note that market leasing companies are forced to devote all their efforts to working with banks and searching for alternative investments.

According to the commercial director of Lentransleasing LLC Dmitry Paslavsky, many banks have temporarily suspended work with leasing in general.

According to the General Director of Control Leasing, Dmitry Timofeev, in addition to bank loans, traditional sources of funding were the placement of bond issues (in rubles and foreign currency in domestic and foreign markets), funds and loans from shareholders. It is also possible that leasing companies with foreign participation directly raised money abroad. In addition, lessors, which are subsidiaries of large public and private companies, receive money from their parent companies, among other sources.

However, let's return to banking instruments. According to experts, interest rates on loans in rubles for lessors increased by 6-8%.

Dmitry Zotov, general director of the leasing company TransFin-M, notes that before the crisis, rates on banking products were relatively low and the terms of attraction correlated with the terms of leasing. “With the onset of the crisis, access to credit resources turned out to be significantly limited, and we are talking not only about increasing rates, but also about reducing terms, which reflects the general level of uncertainty in the economy. The most accessible source today still remains loans from Russian banks. Interest rates bank loans, despite the reduction in the key rate to 14%, are at the level of 17-20%. It is difficult to find a sector of the economy that could take advantage of resources of such value and at the same time remain profitable. Borrowing from Western banks was not very common among people before the crisis. domestic players in the leasing industry were largely used for transactions in the aviation segment. With the introduction of sanctions, their very possibility has come to naught. Chinese banks are being considered as an alternative, but it will take time to build a process of interaction with them. Russian market,” Mr. Zotov paints a disappointing picture.

Murat Sataev, director of the North-Western regional branch of Sberbank Leasing CJSC, states that due to rising interest rates, the share of bank loans in the financing structure is decreasing, and the share of own funds and advances is growing.

And General Director of ZEST Group of Companies Oleg Anufriev emphasizes that under the pressure of sanctions, the leasing market is significantly suffering from an increase in the cost of funding, regardless of its source. “ZEST Group continues to receive loans from its partner bank Rossiya. Of course, the rates on attracted financing have increased in recent months, but this is a general trend,” he explains.

Under the wing

Now, however, the sources of funding have remained the same, with the exception of foreign markets, which have become inaccessible due to the introduction of sanctions, and foreign currency liabilities (credits and borrowings), the rates for which are simply unaffordable today.

However, Alexey Smirnov, CEO of Carcade, notes that currently most participants in the leasing market rely mainly on existing credit lines and their own funds. “In a more preferable situation, there are companies with significant state participation, which can raise funds as part of additional capitalization of parent structures by the state,” he points out.

Leasing operators with a diversified portfolio of loan obligations found themselves in a more advantageous position. In addition, experts add that large federal companies from the top 20 are less vulnerable in this situation. The fact is that, as a rule, top companies have better optimization business processes and risk management, they have more resources to retain “quality” clients, they can negotiate with leading lenders and have the opportunity to purchase leasing portfolios of small companies.

Convulsive contraction

Participants in the leasing market explained what the situation with the contraction of the borrowing market will lead (and in some cases has already led to). Mr. Anufriev says that the deterioration of the funding situation and the increase in the cost of leased items, coupled with the difficult financial situation of potential borrowers, will inevitably lead to a decrease in the number of transactions in the leasing market.

According to Mr. Paslavsky, this situation creates additional difficulties for lessors in light of the need to constantly maintain volume due to the VAT problem that will arise in the absence of new transactions. “In addition, even with a high-quality portfolio, in the absence of new business due to a constant decrease in average monthly revenue, the lessor’s margin will also constantly decrease. This may lead to the fact that indirect costs will no longer be covered by the core activity,” says He.

Vladimir Pekhterev, head of leasing at Intesa Leasing CJSC in St. Petersburg, emphasizes that the deterioration of the funding situation in the leasing market will lead to an increase in leasing interest rates, since the lessor must maintain margins. “Due to the general increase in the cost of money in the market, the cost of leasing products will also increase. Accordingly, fewer and fewer companies will be able to afford leasing products, there will be an outflow of clients and stricter requirements for them,” explains Mr. Pekhterev.

According to Dmitry Zotov, the inability to attract long-term financing forces leasing companies to freeze new projects or increase the volume of investments from their own funds. "If the company manages liquidity competently, it is possible to attract shorter-term liabilities. However, one way or another, the volume of new transactions will decrease in 2015. Both due to expensive borrowed resources, and against the backdrop of a difficult economic situation and the deterioration of the financial condition of lessees. I think that in 2015, the reduction could range from 30 to 50% of the 2014 volume, everything will depend on the normalization of the situation in the banking sector,” he notes.

Pack your lease suitcase

Some experts confirm the possibility of the worst-case scenario for market participants—bankruptcy.

According to Mr. Timofeev, the deterioration of the funding situation is already leading to an increase in payments under leasing contracts for clients in the short term, and in the medium and long term - to the withdrawal from the market of some leasing companies with a portfolio that is not diversified by the source of funding.

According to Deputy General Director of VEB-Leasing OJSC Alexey Sichinava, the current situation will lead to the fact that leasing companies will be forced to increase the cost of leasing, reduce the percentage of approved transactions, and some leasing companies will be forced to cease their activities or enter the structure of another company.

Alexey Smirnov also believes that the consequences of current events may include the departure of small players from the market, restructuring or sale of part of their portfolios. “The funding situation will also lead to a reduction in the volume of sales in the leasing market. Operators simply will not be able to finance the volume of transactions that they previously counted on - the main bet will be placed on the most reliable and solvent clients,” he claims.

Daria Simonova

With a wide zipped pocket