Leasing Structures Popular by Large Companies

Long-term loans remain unpopular among executives of large corporates, driven by the hectic changes in the domestic and especially the international economic situation. A growing proportion of those who use loans to realize their investments are considering leasing structures, according to a representative survey by K&H, the findings of which were published in a statement to MTI on Thursday.

Based on the research of the first quarter of 2025 of the K&H large company growth index, in which 200 large companies with a turnover of over two billion forints were surveyed, it was found that the proportion of company managers who expect a decline in the volume of their investments within a one-year timeframe has decreased. In fact, they are setting themselves up to maintain the current level: with a 9-percentage-point increase, nine out of ten managers now expect the volume of investment to remain unchanged.

They stressed that leasing is the most popular option among those who plan to bring in external help to finance their development.

The number of managers who consider short-term loans irrelevant has also decreased significantly. While at the end of the year more than half of them thought this way, the first quarter data show that just over a third of them now think this way.

Among large companies, long-term loans are the least popular form of financing. One in six business leaders believe that the take-up of long-term loans will fall in the next year. Here too, the proportion planning to level off has risen the most (from 23 to 33 percent).

The release quoted Tibor Bodor, head of K&H's corporate division, as saying that the data shows that large companies are still concerned about the expected development of the domestic economy, but also the international economy. They still prefer to play the "safety game" and are reluctant to commit in the long term.