In the first quarter of 2022, the factoring industry recorded an increase of nearly one-third compared to the same period last year. This is a record pace of development in the history of the sector. In the first three months of 2022, companies associated with the Polish Factors Association in Poland purchased receivables with PLN 105 billion (approx. EUR 22.6 billion). This is as much as 32.8 % more than a year before, when this result amounted to PLN 79.1 billion (approx. EUR 17 billion). Currently, almost 21 thousand local enterprises use factoring services. They provided 5.5 million invoices for financing.
The PFA connects the majority of entities providing factoring services in Poland. It currently brings together five commercial banks and 21 specialized financing companies. It also includes six entities with the partner status.
“The factoring industry started the year 2022 very dynamically. It was successful despite many adversities. The main barrier concerns the economic and political consequences of Russia’s armed attack on Ukraine. Another problem is the effects of the economic recession caused by the pandemic, which entrepreneurs still feel, and the growing uncertainty about the impact that the Polish Deal may have on our industry. The impressive results of the industry at the beginning of this year herald that the entire year may be the best in history for the sector,” – says Konrad Klimek, Chairman of the Polish Factors Association Executive Committee.
The turnover of factors associated with the PFA in the first quarter of 2022
Currently, 20.8 thousand enterprises use the services of companies belonging to the PFA. They issued nearly 5.5 million invoices, based on which local factors granted financing.
“There is an apparent growing demand for factoring among entrepreneurs. The service allows very flexible and immediate conversion of receivables into cash. This is of great importance for our customers operating in a difficult environment and struggling with, among other things, with galloping inflation. The increase in prices of goods and services and the natural development of the industry undoubtedly contributed to the record results of the industry,” – adds Konrad Klimek.
The number of factor customers associated with the PFA in the first quarter of 2022
Production companies most often use the services of factoring companies in terms of sectors. They account for nearly half of the customers who choose this form of financing. On the other hand, one-third are distributors of goods and products. They usually issue invoices for high amounts and with longer payment terms, so it is essential from the customers’ point of view that they are immediately “unfrozen”. Thanks to this, they can conduct their business without interruption, settle their obligations on an ongoing basis, and offer their contractors attractive terms of cooperation.
Source: the Press release by the Polish Factors Association dated April 26, 2022
