Poland: trade credit grows amid 2021 business optimism

Payment Practices Barometer

  • Poland
  • Agriculture,
  • Chemicals/Pharma,
  • Construction,
  • Electronics/ICT,
  • Food,
  • Machines/Engineering

25th November 2020

Despite a massive increase in overdue receivables due to the pandemic, Polish industry is largely upbeat about the outlook for 2021.

Introduction

Domestic consumer demand underpins Poland’s economy and in many ways has helped  to at least partly insulate it from potential threats such as Brexit, US import tariffs and the  coronavirus. In some markets, including neighbouring Slovakia and to a slightly lesser degree, the Czech Republic, B2B credit dropped dramatically as a result of the pandemic downturn, as businesses tried to minimise the risks associated with selling on credit.

The story was different for Poland, however, where there was an increase in the use of  trade credit. This is clearly a strong sales strategy employed by businesses in an increasingly competitive market. The pandemic-induced economic crisis appears to have had a lighter touch on Poland than in other countries in the region.

Key takeaways from the report

  • Polish businesses seek to encourage sales on the domestic market by increasing the  amount of trade credit offered to B2B customers.
  • The country experienced an average 76% increase in late payments following the onset of the pandemic.
  • 71% of the businesses surveyed in Poland chase unpaid bills with reminder notes.
  • When facing a squeeze on cash flow, businesses in Poland frequently withhold payment  to suppliers until their liquidity improves.
  • Most of the businesses surveyed in Poland expect the domestic economy to improve in 2021

Interested in getting to know more?

For a complete overview of the corporate payment behaviour in Poland during the COVID-19 pandemic and global recession, please download the complete report. The report gives also insight into the impact of the pandemic-induced economic crisis on the following industries in the country:

  • Agri-food
  • Chemicals
  • Construction
  • ICT/elctronics
  • Machines

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