The third quarter of 2024 brought the anticipated growth in turnover for the factoring industry. Companies associated with the Polish Factors Association (PFA) have purchased receivables for a total of PLN 344.6 billion in the first nine months of this year. This is 3.1% more than in the previous year, when they recorded a turnover of PLN 334.15 billion. During that period, PFA members served 25.9 thousand companies (2% more than last year), which submitted 21.5 million invoices for purchase (8.4% more than the previous year).
The Polish Factors Association (PFA) currently represents the majority of entities providing factoring services in Poland. It includes 5 commercial banks, 20 specialized financing firms, and also 6 partners.
“Even though the situation in the Polish market is still far from expectations, the factoring sector achieved an increase in turnover for the second quarter in a row. Economic conditions in the country and in Europe remain unfavourable. The number of insolvent companies is increasing, as are labor costs. The war in Ukraine continues, and the geopolitical situation remains unstable. Therefore, we are all the more pleased with the dynamics of the development of our sector. In the third quarter of this year alone, compared to the third quarter of last year, we achieved a 7.3% increase in turnover. Altogether, despite a weak first quarter, the industry has achieved a growth of over 3 percent in the first nine months of 2024,” says Konrad Klimek, Chairman of the Executive Committee of PFA.
Currently, 25.9 thousand companies use the services of firms belonging to the PFA. They submitted 21.5 million invoices for financing with a total value of PLN 344.6 billion.
“Factoring is a form of business financing that works in times of prosperity, slowdown, and even recession. In favorable economic times, companies need larger injections of cash, while in difficult times, when the flexibility of the banking sector decreases, invoice purchasing becomes a convenient alternative. In both cases, there is a wide field of activity for factoring companies. We can offer user-friendly products tailored to the needs, mitigating the risks of transactions by properly adjusting advances, financing limits, individual client limits, or concentration limits,” explains Konrad Klimek, Chairman of the Executive Committee of PFA.
The factoring sector has strengthened its cooperation with the banking market, and through the Association of Polish Banks and the Polish Factors Association, the two industries have begun cooperation aimed at creating the Factoring Companies Information Exchange System – SWIFF. This will allow for data exchange between entities involved in factoring activities regarding customers and their debtors. It will eliminate the risk associated with the operation of suspicious factoring agents and their contractors, which will limit the number of frauds. A joint database will allow for more effective risk management, both credit and operational. PFA hopes that all members of the union will join the system over time.
Source: https://ceo.com.pl/branza-faktoringowa-z-31-wzrostem-obrotow-w-trzecim-kwartale-2024-r-10716
