The upward trend in overdue corporate debt slowed somewhat last year, in contrast to the growing number of insolvent businesses. Issues with timely payments to financial institutions and business partners affected 331,200 companies—12,300 more than the previous year. The market is thus facing an increasing number of high-risk clients, particularly in the transport, shipping, and logistics (TSL) sector and the waste management industry. Despite this, the total overdue corporate debt remains high, exceeding PLN 43.8 billion by the end of last year. The education sector saw the highest surge in overdue liabilities, while construction recorded the largest increase in the number of financially unreliable enterprises, according to financial credibility data collected in the BIG InfoMonitor Debtor Register and the BIK credit information database.
More Companies Struggling with Financial Obligations
An increasing number of companies are struggling with their financial obligations, as confirmed by data from the BIG InfoMonitor Debtor Register, which tracks overdue payments to business partners (non-credit debts), and the BIK database, which records credit history, including unpaid loan obligations (credit debts). The number of debtor companies now stands at 331,200, indicating that 5% of businesses across various sectors face financial difficulties.
The total overdue credit and non-credit corporate debt, delayed by more than 30 days and amounting to at least PLN 500, surpassed PLN 43.8 billion at the end of last year. However, the overall increase in corporate debt across different sectors and industries in 2024 was slower than the previous year. From January to December, overdue debts rose by PLN 1.95 billion (4.7%), compared to a PLN 2.4 billion (6%) increase in 2023. While the total debt growth rate has decelerated, the number of companies facing financial issues has surged—rising by 4% in 2024 compared to 2% in 2023. Throughout last year, creditors added 12,292 new companies to the debtor register.
“Polish companies face numerous challenges today, including energy and digital transformation, high energy costs, rising labor expenses, and interest rates that remain high compared to other EU countries. It is therefore unsurprising that only one in three companies plans to invest, and just one in four intends to expand employment. Additionally, billions of zlotys frozen in overdue debts significantly hinder business growth and development, making it difficult for companies to meet their financial obligations on time,” explains Dr. Waldemar Rogowski, professor at SGH and chief analyst at BIG InfoMonitor.
Trade, Industry, and Construction Lead in Overdue Debt
The trade sector (both wholesale and retail) continues to top the list of industries with the highest overdue debts, amounting to nearly PLN 9 billion, followed by the industrial sector with almost PLN 6.9 billion, and construction and TSL, with over PLN 5.6 billion and PLN 3.3 billion, respectively. The professional, scientific, and technical services sector also faces mounting financial distress, with overdue debts approaching PLN 2.8 billion. Sectors such as real estate services and HoReCa (hospitality, restaurants, and catering) also report debts exceeding PLN 2 billion.
Some improvements have been observed in the construction sector, where total overdue debt declined by PLN 421 million (7%) over the past year, and in the industrial sector, where outstanding debt fell by almost PLN 391 million (5.4%). The mining and extraction industry also saw a reduction of PLN 60.5 million (8%), while agriculture recorded a minor decrease of nearly PLN 4.6 million (1%).
“While total overdue debt in the construction industry has decreased, the number of financially unstable companies is rising. The Polish construction sector, after experiencing record profits and high profitability in recent years, entered a slowdown in 2024. However, this phase is expected to end this year, as new EU funding will stimulate demand for construction and assembly projects,” notes Dr. Waldemar Rogowski.
Last year, 2,269 new unreliable entities emerged in the construction industry, bringing the total to nearly 53,000—placing it second only to the trade sector, where 74,700 businesses struggle with overdue debts.
Other key sectors continue to experience rising overdue debt levels. Notably, the education sector recorded a 32% increase to nearly PLN 280 million. Demographic shifts, declining interest in higher education, and rising infrastructure maintenance costs are currently the main challenges for this sector.
Energy generation and supply (gas and heating) followed with a 31% increase to PLN 173.4 million. In absolute terms, the professional, scientific, and technical services sector saw an increase of PLN 304.4 million (12.4%), TSL by PLN 237 million (8%), finance and insurance by PLN 206 million (23%), and HoReCa by over PLN 189 million (10%).
“The activity in our databases confirms that some companies are actively trying to pay off their overdue debts, but not all succeed. Creditors are increasingly using the option to report their unreliable debtors to the BIG register, which is why new financially unstable businesses continue to appear,” explains Paweł Szarkowski, CEO of BIG InfoMonitor. “This practice allows businesses using economic information exchange systems to be warned about fraudsters and insolvent partners while also alerting others. Companies from various industries report their debtors to BIG, providing market participants with crucial insights into their existing or potential business partners’ financial reliability. Additionally, through BIG, businesses can access other databases and reports from credit agencies. If a company serves multiple consumer clients, it can verify them through sources like the PESEL database, the PESEL Restriction Register, or the Identity Card Register (RDO). Another valuable source is the National Debt Register (KRZ), which provides information on restructuring, enforcement, and bankruptcy proceedings, helping businesses avoid risky transactions and assess partners’ financial credibility,” adds Szarkowski.
High-Risk Clients
The TSL sector still has the highest percentage of financially unstable companies, with 9% of all registered firms in this industry facing serious financial troubles—meaning nearly one in ten transport companies poses a significant insolvency risk. The mining and extraction sector also remains problematic, with a persistently high proportion of struggling firms. The water supply, waste management, and land reclamation industries report 7.6% of companies facing financial difficulties. Additionally, the hospitality and catering sector has a concerningly high proportion of debtors, at 6%.
Alarmingly, the average overdue debt per company continues to rise, even though the total debt growth has slowed and the percentage of companies in financial distress has increased. Currently, the average company has over PLN 132,000 in overdue credit and non-credit liabilities.
“Before choosing a business partner, it is crucial to review their payment history and financial solvency. If a company has overdue debts, this should be considered a warning sign. Business owners equipped with this information can take additional measures to safeguard their interests. This is one of the key ways to prevent financial difficulties. In 2023 alone, over 5 million financial credibility reports on companies from various sectors were retrieved from BIG InfoMonitor. Over the past five years, the number of reports requested has increased by 41%, proving that financial due diligence is becoming increasingly important in business,” concludes Paweł Szarkowski, CEO of BIG InfoMonitor.
