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Factoring market in Poland after IIIQ 2009
After IIIQ 2009 factoring companies federated in Polish Factors Association had a turnover of 21,6 billion PLN (with a turnover fall of 13% y/y).
The leader among PFA members after IIIQ 2009 is ING Commercial Finance with a market share of 31%, followed by Pekao Faktoring with 16,3% of market share. Polfactor holds the third position with a market share of 13,6%. It needs to be emphasized that Polfactor develops in spite of the falling trend of the factoring sector and constantly increases its market share. Polfactor is one of the three factoring companies with the growing market share y/y.
Market share PFA
Can companies in difficulties use factoring? What does a factoring company pay a special attention at?
Even in sectors that are nowadays considered risky there are companies with a stable financial situation. Additionally clients operating in these sectors may produce, service or sell to companies that operate in sectors considered as non-risky. What is important is that the sale is with long terms of payment to reliable partners that meet the payment conditions. Nowaydays factoring companies pay particular attention to safety of transactions, analyzing the financial situation of factoring debtors, history of co-operation, sale contracts and all the related documents.
Which sectors use factoring to finance their operations?
When it comes to sectors that use factoring to finance their activities the following can be listed: steel distribution, food and beverages (agriculture), automotive, furniture and wood products, electrochemical and machinery.
Polfactor - 15% factoring turnover growth in IIIQ 2009
- Polfactor - 15% turnover growth
- Polfactor leader in recourse factoring
- Polfactor third factor on the Polish market (Polish Factors Association data)
In IIIQ 2009 Polfactor recorded a factoring turnover of 2 949 mio PLN, which is 15% growth year on year. This means that the market share of Polfactor increased by 32% and is now 13.6%.
Among the factoring companies federated in Polish Factors Association after IIIQ 2009, Polfactor had the highest turnover in recourse factoring, which remains the leading product in Polfactor’s portfolio.
Another good trend can be observed when comparing IIIQ 2009 and IIQ 2009 results. Polfactor recorded the biggest growth of the all the largest factoring companies i.e. 16% q/q.
Factoring market in Poland after IIIQ 2009
Factoring turnover of 10 factoring companies federated in Polish Factors Association reached 21.6 billion PLN (5.1 billion Euro) which is 13% less year on year. It needs to be emphasized that Polfactor recorded a growth on the market that noted a slight fall. Polfactor is amongst 3 factoring companies that recorded growth year on year.
Polfactor gets a nomination for „The Best Factoring Offer”
Gazeta Fiansowa, a Polish weekly, published on 25th of September 2009 its edition of Turbiny Polskiej Gospodarki ranking in which the best performing SME companies from various sectors have been nominated. The ranking also named the companies offering best products that contribute to the development of the SME sector in Poland. Among the nominees is the factoring offer of Polfactor, which acclaimed as “the best factoring offer”.
The best factoring offer
Polfactor
“the prize for creating the factoring offer for small and medium enterprises, that improves cash flow of SME companies by managing and financing their receivables”.
Polfactor is one of the leading factoring companies in Poland. It was founded by BRE Bank and Intermarket Bank AG in 1995. Polfactor is a member of the international factors network – Factors Chain International (FCI) which federates 242 members from 65 countries as well as Polish Factors Association. Polfactor’s factoring offer includes domestic factoring recourse and non-recourse, export factoring recourse and non-recourse and import guarantees. Polfactor is Polish market no 1 in terms of domestic recourse factoring.
Factoring market in Poland in the world statistics 2008 / 2009
According to Factors Chain International data (FCI) world’s factoring sector had a turnover of 1 325 111 mio Euro i.e. 2% y/y (in 2007 the sector had a 15% growth).
This result was considerably influenced by currency fluctuations of most of non Euro Group countries. Great Britain, the leading factoring market in the word, decreased its factoring turnover by 100 mio Euro i.e. by 32% y/y.
For the last few years Poland ranks between 20 – 30 place in the in terms of factoring turnover. In 2008 Poland ranked 26th. In Europe which accounts for 67% of the total factoring turnover Poland ranks 15th.
Data FCI 2008 world’s factoring turnover, in mio Euro
Share of continents in factoring turnover
Data: FCI, 2008
Countries with the biggest factoring turnover
| 2006 | 2007 | 2008 | |
| Other countries | 24.1% | 24.2% | 24.5% |
| Great Britain | 21.9% | 22.0% | 14.2% |
| France | 8.8% | 9.3% | 10.2% |
| Italy | 10.6% | 9.4% | 9.7% |
| Japan | 6.6% | 6.0% | 8.0% |
| Germany | 6.3% | 6.8% | 8.0% |
| Spain | 5.9% | 6.4% | 7.5% |
| United States | 8.5% | 7.5% | 7.5% |
| China | 1.3% | 2.5% | 4.2% |
| Tajwan | 3.5% | 3.3% | 3.7% |
| Australia | 2.4% | 2.5% | 2.5% |
Market share in total factoring turnover of 10 biggest countries, data FCI, 2008
Polfactor - good prospects for 2009
- Polfactor - leader in domestic recourse factoring
- Polfactor increases its market share by 25% (1H 2009 / 1H 2008)
- Polfactor the most dynamic in IIQ 2009
Among companies federated in Polish Factors Association (PFA) Polfactor had the highest turnover in domestic recourse factoring in IH 2009. Domestic factoring remains the leading product in Polfactor’s portfolio, as at 30th of June 2009, the factoring volume of domestic factoring was 1 515 mln PLN, which is 85% of the total factoring turnover generated by Polfactor. In domestic factoring volume the share of recourse factoring was 85.6% and in non-recourse one 14.4%.
Polfactor is growing faster than the industry:
- After IH of 2009 Polfactor increased its market share by 25% compared with the corresponding period of the last year. The current market share of Polfactor is 12.5% (among PFA companies). This proves that even in a sector that experiences an economic slowdown growth is possible.
- Another positive aspect of Polfactor’s development can be observed when comparing the results of the 2Q 2009 to 1Q 2009. Polfactor has noted the fastest dynamics i.e. 28% Q/Q among PFA companies.
We do hope that Polfactor will continue its growth in a sector that has suffered a slight drop. As far as the 2009 factoring market in Poland is concerned we are certain that entrepreneurs will appreciate factoring and its additional services that will improve the safety of their companies activities (by insuring receivables), that will reduce the risk of late payments or no payments of its debtors (monitoring and management of receivables) so to eliminate payment delays. A lot depends on the condition of the factoring companies (their access to external financing and safety of their factoring portfolio), which in fact will affect Polish factoring sector results in 2009.