Instead of increasing long-term loans, large companies are considering maintaining leasing structures

By: Trademagazin Date: 2025. 05. 22. 11:50

Long-term loans are still not popular among the managers of large companies, which is explained by the hectic changes in the domestic, but especially the international economic situation. According to the research data of the K&H Large Company Growth Index for the first quarter of 2025, these are the least popular: the proportion of those who plan to take out fewer such loans increased by 5 percentage points, while those who plan to take out more such loans decreased by 4 points. Therefore, large companies are waiting for the time being or are investing in developments with a maximum of shorter terms. Those who implement their investments with loans are increasingly considering some kind of leasing construction. Overall, the most typical use rate for all financing solutions is the unchanged utilization rate.

According to the research data of the K&H Large Company Growth Index for the first quarter of 2025, the proportion of company managers who expect a decline in the volume of their investments over a one-year period has decreased. Although this is a positive result, it is not a reason for excessive joy, as they are not planning for growth, but for maintaining the current level: with a 9 percentage point increase, nine out of ten company managers are currently calculating with unchanged investment volume.

Among those who plan to involve external help in the implementation of their developments, leasing structures are the most popular. The proportion of those for whom this form of financing is not relevant has decreased by more than 10 percentage points, with just over a third currently stating this. In addition, the proportion of those who believe that the utilization of leasing structures will increase is 6 percent, while the proportion of those for whom the utilization of leasing structures will decrease has decreased from 5 to 3 percent. At the same time, more than half of the companies are counting on maintaining leasing at the same level, which is the highest value measured so far.

The number of company managers who consider short-term loans to be irrelevant has also decreased significantly. While more than half of them thought so at the end of the year, based on the data from the first quarter, only just over a third of them do. This has continued the downward trend that has been going on since last autumn, with almost half as many (36%) now considering short-term loans irrelevant as they did then (63%). At the same time, the proportion of those who expect stagnation in the popularity of this form of financing has doubled over the same period. The proportion of those who predict growth and those who expect a decline are moving together: both decreased by 2 percentage points in the last quarter and are currently at 3 points.

Although the number of business leaders who consider long-term loans irrelevant has decreased significantly – from two-thirds to about half – this is still the least popular form of financing among large companies. One in six business leaders believes that the utilization of long-term loans will decrease in the next year, and the proportion of those expecting an increase has decreased by 4 points to just 2 percent. In this case, the proportion of those planning to maintain the level increased the most (from 23 to 33 percent).