The factoring market in Poland recorded a 4.7% increase in turnover in 2024. Companies associated with the Polish Factors Association (PZF) purchased receivables worth a total of PLN 471 billion during this period, up from PLN 450 billion in the previous year. PZF members provided financing to 27,000 businesses (a 3% increase year-on-year), which presented 28.7 million invoices for purchase—7.3% more than the previous year.
The Polish Factors Association currently comprises most entities providing factoring services in Poland. Its members include four commercial banks, 20 specialized financing firms, and six partners.
Strong Growth in the Factoring Market
“The factoring market returned to growth in 2024, with the fourth quarter outperforming the same period in 2023 by 9.1%. This resulted in a full-year growth of 4.7%. The first quarter saw negative turnover dynamics, but subsequent quarters showed positive results, with each quarter recording increasingly faster growth (4% in Q2 and 7% in Q3). This was achieved despite unfavorable macroeconomic conditions, including high labor and financial costs and a worrying rise in company insolvencies. Globally, uncertainty persists with the ongoing war in Ukraine, the early decisions of U.S. President Donald Trump’s new administration, and instability in the Middle East. Despite these challenges, our sector is performing well, demonstrating that factoring is resilient to diverse economic and geopolitical conditions. Entrepreneurs recognize this and turn to factoring both during economic growth and downturns,” said Konrad Klimek, Chair of the PZF Executive Committee.
Currently, 27,100 businesses utilize the services of PZF-affiliated companies, submitting 28.7 million invoices for financing with a total value of PLN 471 billion.
Positive Trends in the Market
“We are seeing several positive trends in the factoring market. Alongside rising turnover, the number of clients using financing and the volume of submitted invoices are also increasing. If not for the declining average value of invoices, our sector’s growth would be even faster. Nonetheless, the versatility and flexibility of factoring services continue to drive demand. We adapt our products to meet the changing needs and expectations of entrepreneurs, effectively mitigating risks by adjusting financing limits and advance levels,” explained Klimek.
However, Klimek emphasized that a key challenge for the sector is encouraging businesses to make greater use of full-service factoring.
“This product complements financing by securing transactions through receivables insurance, providing clients with protection in the event of non-payment for delivered goods or services. In the context of rising corporate insolvencies in Poland, this is crucial for financial security,” he added.
Focus on Data Transparency and Risk Mitigation
The Polish Factors Association, in collaboration with the Polish Bank Association, has initiated work to enhance data flow in the enterprise financing process. The factoring and banking sectors are developing the Factoring Company Information Exchange System (SWIFF), which will enable the exchange of data about questionable transactions. This system aims to significantly reduce risks associated with cybercrime activity. Additionally, it is expected to positively impact both credit and operational risk management.
The PZF intends for all its member factors to use the SWIFF platform, which is poised to improve overall industry standards and safety.
Source: CEO.com.pl
