According to the Leasing Index survey conducted on SMEs planning to expand their operations, 17% declare that they already operate on foreign markets and another 20% is considering to enter foreign markets for its products. There is a correlation between planned expenditures for development and awareness of the leasing financing benefits. Out of the companies that have already availed of leasing, as much 55 percent declare that they intend to broaden their scope of activity. Interestingly, SME entrepreneurs who have used leasing before, invest twice as much than those who have not.
According to BZ WBK Leasing analysis, the motivation for expansion is the desire for dynamic growth in new markets – 42 percent of indications. In addition, 17 percent of the researched companies believe the expansion involves the implementation of the strategy they have adopted, while 8 percent of the companies have pointed to their innovative products or services and a competitive business model that they believe will allow them to quickly gain new markets.
– Our observation shows that, contrary to appearances, companies in the SME segment do not have any specific legal or formal obstacles in terms of expansion into foreign markets. However, entrepreneurs are concerned about the inability to find reliable business partners or unfavourable exchange rate changes. As for the challenges, in the context of the following years, it is important to support the financing of foreign expansion of Polish companies, to subsidize their participation in foreign fairs and exhibitions (especially among medium-sized enterprises). It is also important to support the search of business partners abroad and identify the target market – particularly relevant to the smallest companies deciding to take their first cross-border steps. This, in the coming years, should be the focus of the activity of the newly established trade offices which are suppose to replace the existing Investor and Exporter Service Centres – says Mr Tomasz Sudaj, Managing Director of Market Strategy at BZ WBK Leasing.
Leasing has been fuelling investments for years
In the context of the interesting correlation between planned development expenditures and the awareness of the benefits stemming from leasing, the most obvious area where you can tap into this form of raising capital for development is the purchase of new machinery. And indeed, 22 percent of the companies, that have already had some experience with leasing are planning to invest in equipment, comparing to only 5 percent the companies, that have not previously availed of leasing.
However, reducing leasing experience solely to financing of the equipment would be a significant simplification. Companies using leasing services indicate that they intend to increase employment (24 percent of respondents), and as much as 24 percent of the entrepreneurs want to use leasing as a source of fixed assets finance. It is worth pointing out that this is yet another proof that leasing is a flexible and accessible financial product supporting the development of SMEs and thus propping up the entire economic development, which is one of the fundamental goals of the industry not only in Poland but also in Europe.
– The above ratios confirm the entrepreneurs’ general willingness to invest in innovation, which differ slightly depending on the region of Central and Eastern Europe. In this respect, Poland does not stand out neither below or above the rest, thus remaining a strong average. There is a lot to do in this area, and the growth of the innovativeness of Polish companies is necessary to meet the very competitive global market, ” – concludes Mr Daniel Mrozek, Director of Marketing and Sales Support at BZ WBK Leasing.
BZ WBK Leasing is part of BZ WBK capital group. It offers financing of a wide range of fixed assets to SME sector business as well as large and corporate sector clients as a universal leasing provider.
The company specialises in the financing of machines, appliances, real estate and means of transport. The offer is supplemented with attractive insurance packages and fuel cards.
BZ WBK Leasing focuses on the quality of the offered products and services ad well as the solidity and transparency in cooperation with its contracting parties.
Full “Leasing Index” survey is available in Polish here
Source: BZ WBK Leasing Press Release
Media contact: Maciej Sokołowski