The Polish factoring market ended the first half of 2021 with a dynamic increase in turnover. Companies associated with the Polish Factors Association financed the activities of domestic enterprises for a total amount of 167.4 billion PLN (36 .7 billion EUR). The industry, therefore, recorded an increase of 24 % compared to the first half of the previous year. Its services are currently used by nearly 21 thousand entities that provided 10 million invoices for financing.
The Polish Factors Association (PZF) associates the majority of entities providing factoring services. It currently brings together 5 commercial banks and 21 specialized financing companies. It also includes 6 entities with partner status. Companies belonging to the PZF achieved a 24% increase in turnover in the first half of 2021.
„For several months, Polish entrepreneurs struggled not only with the effects of the recession caused by the pandemic but also with uncertainty as to the future of the activities carried out by their enterprises. It was undoubtedly the most difficult period in recent years, both for them and the financial service providers who support them on a daily basis. Fortunately, the last few months have been marked by “defrosting” the markets and their return to the right path of functioning and further development. This has brought the expected increase in interest in the factoring service as a quick and flexible method of obtaining funds to finance current operations and protection against the risk of non-payment by contractors” – says Konrad Klimek, chairman of the PZF executive committee.
The services of factoring companies in terms of sectors are most often used by production and distribution enterprises. They operate in conditions of significant price increases, so they need a larger pool of funds to be used for current activities.
„After the difficult last year, we are very happy with such a dynamic increase in the turnover of the factoring industry. Export factoring recorded a particularly strong rebound. The value of invoices entrusted under its full option increased by almost half (49%), and the value of the incomplete option – by 25%. This proves both the greater activity of our exporters and their caution. Export factoring, realized in foreign currencies, in addition to improving liquidity and securing against the risk of non-payment by contractors, significantly minimizes the exchange rate risk. In a situation of the high volatility of exchange rates, it is an important element of international trade”, added Konrad Klimek.
Source: PFA press release from July 27, 2021