ON A SHRINKING MARKET, "Deutsche Leasing" turns to funding agriculture

On a leasing market that has seen its main segments contract, "Deutsche Leasing Romania" is now turning its attention to providing specialized financial services. Agriculture, construction, logistics, metals, plastics manufacturing and woodworking industries are the main markets that the company has focused on since entering the local leasing market, in February 2008.

"Our strategy consists of targeting specific sectors, which require sizeable leasing financing, in particular in the case of industrial segments, agriculture, print, packaging, media and construction equipment", officials of "Deutsche Leasing Romania" say.

• Romanian agriculture offers major opportunities for leasing companies

According to company officials, when it comes to "niche segments such as Agriculture, the Romanian market has a lot of potential. Lenders provide customers with a varied product portfolio, tailored to their changing needs and demands. More than that, "if a customer feels that their needs are served best by another solution, we offer co-financing for European funds, as well as loans for investments", officials of "Deutsche Leasing Romania" said. These solutions are created to meet specific customer needs, facilitating payments or contractual periods. Thus, "a farmer has every chance to develop his business, by opting for the type of financing that best suits his needs", company officials said.

Concerning the benefits of the sector they are targeting, in the case of lenders that have unlimited financial resources, this includes the ability to screen potential customers and projects that are likely to be successful. On the other hand, disadvantages include the short lifespan of companies that apply for funding, which negatively affects their risk rating.

• The coming period, one of market shifting and stabilization

The economic crisis has left its mark on the leasing sector, forcing leasing companies to rethink their strategy and turn to other market segments in order to preserve their market share. In the case of "Deutsche Leasing Romania", "out of the markets that we serve, print, constructions and plastics manufacturing were hit the hardest", said the officials of Deutsche Leasing Romania. They remain optimistic for the future: "There will be a period of stabilization after the steep downward slope, which will also lead to a shifting of the market for leasing companies, as well as for their customers.