In 2002, the total value of invoices purchased by companies engaged in factoring activities reached ZL10bn, compared to ZL8bn a year earlier. About 1,000 companies used the service. Factoring is one of the few types of financial service that is growing in importance and popularity, despite problems with the economy.
Factoring allows companies to increase their sales turnover and use their receivables to improve liquidity.
Factoring services develop best in countries where the legal system is friendly. Polish law does not fully support the activities of factoring companies in that business losses may not be treated by firms as a cost of earning revenue. Those regulations may soon be changed.
Go to Poland’s new bankruptcy and corporate recovery law on Factorscan, first reported on 21 May 2003.
Source: Polish News Bulletin
