The Association of Multiple Banks of the Dominican Republic (ABA) informed that the banking sector has increased its financial leases (leasing) by RD$2,889 million during the last four years, showing an accumulated growth of 46.2% in said period.
The ABA explained that that the financing granted by multiple banks through the leasing format passed from RD$6,254 million in 2018 to RD$9,143 million, at the end of 2021.
detailed Compared to the previous year, said leases increased by RD$1,036 million, showing a growth of 12.7%. He explained that, at the end of 2021, 1,628 leasing operations were maintained.
The union highlighted that the leasing is taking greater strength as a financial form to support companies in their investment needs in machinery and equipment for the development of their activities.
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“This financial instrument allows companies to make investments without having to disburse a large amount of their resources, benefiting at the same time from the use of goods that, at the end of the term of the contract and in case of wanting to incorporate said goods into their assets, could be acquired for their residual value”, he specified. the ABA.
Invoice discounting or factoring
The discount of invoices (factoring) of the multiple banks showed an accumulated growth of 50% during the last four years, equivalent to RD$359 million, reported the official. the banking union, explaining that this instrument passed from RD$717 million in 2018 to RD$1,077 million at the end of 2021.
Last year, the invoice discount increased. It increased by 346 million (47% growth) in relation to 2020 and reflected a recovery in this form of financing, when compared to the amount of existing credit in 2019.
The ABA What is the usefulness of this financial instrument that is used by companies to anticipate the collection of their credit sales, improving their liquidity and payment capacity, and thus facilitating their commercial activity?
De Similarly, the banking union highlighted The importance of this type of financing for different productive sectors, especially for working capital of small and medium-sized companies.