Advertise Here


IconAdministration Outsourcing
IconAsset Managers
IconAssociations & Institutes
IconBBBEE Consulting and Verification Agencies
IconBusiness Chambers
IconBusiness Process Management
IconBusiness Process Outsourcing
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDebit Order Collection Facilities
IconEducation and Training
IconHuman Resources
IconInformation Technology and Software Partners
IconInvestment Consulting
IconInvestment Fund Managers
IconListed Equities
IconParticipation Bond Managers
IconPolicy Administration
IconPolicy Trading
IconProperty Unit Trusts (PUTS)
IconRegulatory Authorities
IconStock Exchange
IconSurveys and Research
IconTraining Courses & Workshops
IconUnit Trust Fund Managers
IconWellness Programs
  Subscribe To »

Poland Payment Survey: reduced payment delays, but a challenging outlook






Despite the economic slowdown, Coface’s latest survey on business payments in Poland shows that payment delays have systematically shortened since 2017 – but the impact of the coronavirus outbreak on the Polish economy remains to be seen.

Payment terms: transport and construct offer the most generous credit periods

Poland’s GDP growth reached 4.1% in 2019 – a slowdown from the 5.1% recorded in 2018 – and is expected to slow further: Coface anticipates GDP growth in Poland to reach 3.3% in 2020. A relatively favourable macroeconomic environment has created supportive conditions for businesses in previous years. However, the full impact of the COVID-19 coronavirus remains to be observed, notably concerning trade partners. The coronavirus’ knock-on effects could further impact the economic outlook for Poland.

Half of the Polish companies surveyed declared that they impose average credit periods of up to 30 days. Declining payment terms were observed particularly in the 91 to 120 days range, with a decrease of 1.3 percentage points and an overall average decrease in the credit period: from 47.3 days in 2018 to 47 days in 2019.

In this context, 59% of surveyed companies expect that the credit periods offered to small-and medium-sized clients will not change in the coming months. By contrast, credit periods granted to large clients were  expected to increase for 60% of surveyed companies.

Payment delays slightly shorter

With 9 in 10 companies experiencing payment delays in 2019, they appear to be standard practice in Polish business. Nevertheless, the average payment period (57.2 days in 2019) has slightly shortened: nearly 3 days shorter that reported in 2018. In neighbouring Germany, Poland’s main trading partner, average payment delays were three weeks shorter: 35.5 days, according to the latest Coface Germany Payment Survey. In Turkey, average payment delays equalled 40.7 days for domestic sales, and 58.1 days for export sales according to the latest Coface Turkey Payment Survey.

However, the various sectors of the economy continue to face significant payment delays at different degrees. Although the transport sector was one of the five surveyed to report reduced delays – along with agri-food, chemicals, automotive and construction –, 70% of transport companies reported payments that were overdue by more than half a year while the average in the transport sector reached 121.7 days. The average payment delays in the construction sector also surpassed 100 days (104.2). Both sectors were among the most generous in offering long average credit periods (50% of the transport companies surveyed and 38% in construction offered  credit periods of more than 90 days).

Among the sectors experiencing an increase in payment delays (textile, paper-wood, pharmaceuticals, retail, metals, ICT, and energy), the metals sector recorded the highest increase: almost 13 days from 53 to 66 days. This deterioration in the metals sector was already highlighted when Coface downgrade its risk assessment for the sector in Poland from Medium Risk to High Risk.

Sales could stabilize

Despite a further slowdown of GDP growth, 50% of companies responded during the survey that they expected their profitability to rise in the short-term, and 10% of companies expected their profitability to remain at the current level. At that time, the textile-clothing, automotive, and energy sectors were the ones that expected the largest improvement in sales. Conversely, the pharmaceuticals, metals, and construction sectors forecasted lower sales in the coming months. According to the Poland Payment Survey, a large majority of sectors anticipate that the number of outstanding receivables will decrease over the following months. Although Poland has not yet been strongly affected by the COVID-19 outbreak, entrepreneurs might have offered less optimistic responses had the survey taken place in early 2020, due to the negative shock that this health crisis has had on the global economy.

Source: Coface
« Back to previous page Print this page » |

Breaking News »

Crisis brings opportunities for equity investors

By Justin Floor, fund manager at PSG Asset Management   It has been a long winter for many SA investors and we don’t know when it will turn around. In fact, there is still very little we know ...
Read More »


Insurance and Risk in a Post-Covid Economy

Certain insurance classes will take a hit while others will have time to recover, consumer behaviour will radically change the rules of engagement for insurers and brokers, and accelerate digital transformation   Nothing ...
Read More »


COVID-19 Swings the Spotlight Back onto Emerging Countries’ Debt

While the focus so far has been mainly on China, Europe and the United States, the consequences of the COVID-19 pandemic are likely to be even more severe for emerging economies, says International credit insurer, ...
Read More »


Coronavirus impact on shipping industry: idle vessels face new risks, Allianz warns

Increasing disruption and economic pressures caused by the pandemic also has serious risk management implications for the maritime community and insurers alike. Covid-19 pandemic makes it difficult to relieve crews, ...
Read More »


More News »


Healthcare »


Life »


Retirement »


Short-term »

Advertise Here
Advertise Here

From The Glossary »


Dow Jones Industrial Average (Also called the DJIA or "Dow"):

An index of about 30 "blue-chip" US stocks traded on the New York Stock Exchange; a barometer of how shares in the largest US companies are performing.
More Definitions »






Contact IG


Media Pack


RSS Feeds

By using this website you agree to the Terms of Use.
Copyright © Insurance Gateway (Pty) Ltd 2004 - 2020. All Rights Reserved.