PZF: Polish factoring turnover increased by 24% y/y in H1 2021

by   CIJ News iDesk III
2021-07-27   09:33
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The turnover of companies associated in the Polish Factors Association (PZF) increased by 24% y / y to PLN 167.4 billion in the first half of 2021, the PZF reported.

"For several months, Polish entrepreneurs struggled not only with the effects of the recession caused by the pandemic, but also with the uncertainty as to the future of their companies' activities. It was undoubtedly the most difficult period in recent years, both for themselves and their supporters for what day of financial service providers for business. Fortunately, the last few months have been marked by 'unfreezing' markets and their return to the right path of functioning and further development. This has brought the expected increase in interest in factoring services as a fast and flexible way to raise funds to finance current operations and secure against the risk of non-payment by contractors," said the chairman of the PZF executive committee, Konrad Klimek.

"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 under its full option increased by almost a half (49%), and the incomplete option - by 25%. both about 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. an element of international trade," he added.

Currently, 20.6 thousand people use the services of companies belonging to the PZF. enterprises. They issued nearly 10 million invoices, on the basis of which domestic factors provided financing.

"I am glad that entrepreneurs, who want to avoid uncertainty and avert the risk of payment gridlocks, are more willing to use factoring and appreciate its effectiveness, providing more and more invoices for financing," Klimek pointed out.

The services of factoring companies in terms of sectors are most often used by production and distribution companies.

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 the partner status.

Source: PZF and IBSnews