The market for vendor finance
increased by 31% between 2009 and 2010, according to Dogus Karaca,
credit and finance manager at MAN Financial Services.
It is an impressive level of
growth, despite being below the 45% seen in the wider leasing
market. Over the long term the sector has repeatedly proven its
resilience, increasing in size by 400% in the ten years since
2000.
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Cem Surmen, senior vice-president
and head of financial institutions at Garanti Leasing, explains:
“With its growth rate of 8.9% in 2010, the second highest in the
world after China’s 10.3%, Turkey is increasingly attracting global
machinery and equipment producers.
“Continuously renewing technologies
require companies to renovate their machinery park, which brings an
increasing amount of investment in this regard.”
Surmen adds: “In the aftermath of
the global financial crisis, both European and Far Eastern
machinery producers are tending to shift their production and
distribution centres to Turkey.
“They are attracted by its vivid
economic activity, advantageous demographic status and supportive
investment environment.
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By GlobalData“This conveys great opportunities
for Turkish leasing companies, which have an existing vendor
business line. Recently, vendor activity in especially construction
machinery and metal processing machinery is increasing.”
Opinion differs over where the
opportunities will lie in the future.
A&T Leasing treasury manager
Cem Cinar agrees that, like the wider leasing market in Turkey,
both the construction and manufacturing sectors will continue to
perform strongly in the vendor finance market throughout 2011 and
2012.
Karaca says he sees the main
opportunity in increased export levels. Turkey’s exports had been
climbing year-on-year until a fall in 2008, but are now expected to
return to growth.
Karaca sees this increase, alongside additional demand for
trucks used for international transport, as providing a major boost
in the coming months.
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