COFACE
ECONOMIC PUBLICATIONS
PAYMENT
SURVEY
Poland Payment Survey 2019:
Robust economic growth has not
eliminated payment delays
T
2 h e third e dition of Cofa ce ’s
PAYMENT TERMS survey on payment experiences
in Poland was carried out
4 in December 2018 with
PAYMENT DELAYS 293  companies participating
i n t h e s t u d y. T h e p ay m e n t
6 survey investigated businesses’ payment
ECONOMIC b e h a v i o u r, w h i c h m i r r o r s b o t h t h e
EXPECTATIONS short-term economic situation and the
more structural business environment.
7 2 01 8 s aw a p e a k p e ri o d of e co n o m i c
APPENDIX
recovery, with GDP growth accelerating
to 5 .1 % in 2 01 8  –  th e h ig h e s t l eve l of
economic expansion since 2011. Such a
m a cro e co n o m ic e nviro n m e nt cre ate d
favo urable conditions for businesses .
Despite the expected slowdown of GDP
growth, i.e. +3.7% this year according to
Coface, 52% of companies expect that their
profitability is going to rise in the short-
term. The textile-clothing, automotive,
and energy sectors in particular expect
an improvement in sales. Conversely, the
pharmaceuticals, metals, and construction
sectors forecast lower sales in the coming
months. According to our survey, 9 of the
12 sectors anticipate that the amount of
outstanding receivables will decrease over
the following months.
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FEBRUARY 2019
By Grzegorz Sielewicz
Coface Economist,
Central & Eastern Europe
Based in Warsaw, Poland
According to our analysis, sales on credit
are made extensively, with all surveyed
co m p a n i e s h av i n g w r it te n te r m s a n d
conditions to this end , and 9 9 % of
businesses continue to face payment delays.
In the course of economic acceleration,
out standing receivables decrease d in
2018 but only slightly. Our study shows
that Polish companies experience average
payment delays of 59.9 days, i.e. nearly
3 days shorter than encountered in our
previous survey in 2017. The textile-clothing
sector fares the best, with payment delays
of “just” 26 days. Similar to our previous
survey, the longest payment delays were
experienced by transport and construction
companies, at nearly 140 and 105 days,
respectively. Both sectors experienced a
slight improvement in this regard compared
to 2017, but a deterioration is nevertheless
expected in 2019. The highest increase of
payment delay periods was recorded by
the retail sector (an increase from 15 to
44 days).
2 COFACE ECONOMIC PUBLICATIONS POLAND PAYMENT SURVEY 2019
SURVEY

GRZEGORZ SIELEWICZ
Coface Economist,
Central & Eastern Europe
Warsaw, Poland

 PAYMENT TERMS1:
1 TRANSPORTATION AND CONSTRUCTION OFFER
THE MOST GENEROUS CREDIT PERIODS

Chart 1:
Average credit periods
• Short credit periods dominate the Polish business
2019     2018    landscape: half of the surveyed companies impose
50.0%
average credit periods of up to 30 days.
0 up to 30 days
49.8%

14.7% • Compared to our previous survey2, credit periods

31 up to 60 days
13.0% exceeding 60 days increased slightly. The largest
12.3% increase of 1.1 percentage points was reported in
61 up to 90 days
12.6% the 91 to 120 days range.
91 up to 120 days 13.0%
14.1% • Average credit periods decreased by 2.1 days, i.e.
121 up to 150 days 1.7% from 49.4 days in 20183 to 47.3 days in 20193.
2.6%

151 up to 180 days 1.4% • In a sectorial split, the most restrictive sectors
1.5%
(those with a majority of sales on short credit
Above 180 days
1.7% periods of up to 30 days) are textile-clothing
1.9%
(77%), automotive (72%), agri-food (71%), and
Unknown 5.1% energy (71%).
4.5%

0% 10% 20% 30% 40% 50% • Sectors that are the most generous in offering
Source: Coface Payment Survey long average credit periods include transportation
Chart 2:
(58% with credit periods of more than 90 days),
Hypothetical credit periods (days)
metals (54%) and construction (36%). All these
2019     2018    sectors reported a shortening of credit periods
Textile-clothing 25.5 compared to the previous survey. In contrast,
29.2
the biggest extension was reported by the
Energy 30.0
30.0 retail sector.
Automotive 32.7
32.1
• 58% of businesses in Poland expect that credit
Agri-food 36.9
36.9 periods will not change in next six months. This
Retail 37.8 applies principally to small- and medium-sized
18.0
44.3 clients. By contrast, credit periods granted to
Chemicals 48.4 large clients are expected to increase (60% of
47.3 surveyed companies anticipate such an increase
Average 49.4
48.6 – lower than last year, when it reached 65%).
Pharmaceuticals
47.9
ICT 53.5
45.0
58.1
Paper-wood 59.2
67.5
Metals

50%
63.0
84.0
Transportation 87.5
88.4
Construction 95.0
€ OF COMPANIES
0 20 40 60 80 100 request that payments
Source: Coface Payment Survey be made within a month

1 Payment term – the time frame between when a customer purchases a product or service and when the payment is due.
2 Coface Poland Payment Survey 2018: Payment delays mounting amid robust economic growth, March 2018:
http://coface.com/News-Publications/Publications/Poland-Payment-Survey-2018-Payment-delays-mounting-amid-robust-
economic-growth
3 The 2018 Coface Payment Survey - Poland was carried out at the end of 2017; the 2019 edition was carried out at the end of 2018.

FEBRUARY 2019
COFACE ECONOMIC PUBLICATIONS POLAND PAYMENT SURVEY 2019 3
SURVEY

Chart 3:
Average credit periods in sectors

0-30    31-60    61-90    91-120    Above 180 days

Textile-clothing

Automotive

Energy

Agri-food

Retail

Average

Pharmaceuticals

ICT

Chemicals

Metals

Construction

Paper-wood

Transportation

0% 20% 40% 60% 80% 100%

Source: Coface Payment Survey

Chart 4:
Expected developments in credit periods,
by size of companies’ counterparties

Increase     No change    Decline

90%
80%
80% 75%

70%
60%
60%

50%

40%

30%
22%
20%
18%
20% 20%
Credit periods in
10%
Poland range from
0%
3% 2%
26 days in textile-
Small companies Medium companies Large companies clothing to 88 days
Source: Coface Payment Survey in construction

FEBRUARY 2019
4 COFACE ECONOMIC PUBLICATIONS POLAND PAYMENT SURVEY 2019
SURVEY

2  9 IN 10 COMPANIES EXPERIENCE
PAYMENT DELAYS4

• Payment delays appear to be standard practice
in the Polish business. Only 1.4% of companies
surveyed declared that they do not have any
payment delays from their counterparties.
• Average payment delays reached 59.9 days,
which is nearly 3 days shorter than reported in
the previous survey.
Chart 5:
Average payment delays (days)
• 55% of companies experienced average payment
delays of up to 60 days. Delays between 60 and
150 days were reported by 26%, and long delays
of above 150 days were declared by almost 10%5.
Compared to the previous survey, the share of
long delays has risen: payments made more than
three months after the original due date were
experienced by nearly 38% of companies, up
from 24% .

2019     2018   

Textile-clothing
37.1
35.0 Two thirds
Agri-food
37.3 OF TRANSPORT
46.8
39.4
COMPANIES
Paper-wood
38.3 reported payments
Retail
15.0
44.4
€ overdue by more
Pharmaceuticals
46.1 than a half of year
51.9
Metals 53.2
45.0
Automotive 54.3
71.1
Chemicals 57.3
64.6
Average 59.9
62.5
ICT 67.9
47.9
Energy 82.5
85.7
Construction 105.0
115.6
Transportation 139.5
145.9

0 20 40 60 80 100 120 140 160

Source: Coface Payment Survey

Chart 6:
Average payment delays in sectors

0 up to 30 days 31 up to 60 days 61 up to 90 days

91 up to 120 days 121 up to 150 days 151 up to 180 days
More than 180 days No payment delays Unknown

Agri-food
Textile-clothing
Retail
Pharmaceuticals
ICT
Average
Chemicals
Metals
Automotive
Transportation
Paper-wood
Construction
Energy

0% 20% 40% 60% 80% 100%

Source: Coface Payment Survey

4 Payment delay – the period between the payment due date and the date the payment is made.
5 The remaining part (8%) declared themselves unaware of the exact delay of their receivables.

FEBRUARY 2019
 COFACE ECONOMIC PUBLICATIONS POLAND PAYMENT SURVEY 2019 5
SURVEY

• On a sectorial split, the longest payment
delays were experienced by the transport and
construction sectors, at the average of 139.5 days
and 105 days, respectively. 7 sectors reported
reduced delays compared to last year, whereas
5 sectors saw extensions. The highest increase
of payment delay periods was recorded by the
retail sector (the extension by nearly 30 days).
The shortest delays were reported by the textile-
clothing sector (37.1 days).
• The level of outstanding receivables is expected
to stabilise: 46% of the surveyed companies do
not expect to see changes in the next six months.
Among the remaining 54%, there are a greater
percentage of companies (34%) that expect to
see a decline in outstanding receivables than
those who forecast that they will increase (20%).
At the same time, 36% anticipate a growing
number of payment delays from larger clients,
while 29% expect no change.

• Long payment delays of more than six months
account for a sizeable share of companies’
turnovers. However, they have decreased over
last years: these overdue payments represent
more than 10% of turnover for 15% of the surveyed
companies (18% in 2018 and 21% in 2017).
• Due to a lack of payments, companies have had to
take action against debtors. Third party services
(such as debt collection and external lawyers)
were the most effective (indicated by 46% of
companies). Internal resources for monitoring and
debt collection were used by 34% of companies,
while arbitration and mediation actions were
practiced relatively rarely (10% of companies).
• Examining the results by sector, the sectors
expecting the farthest falls in payment delays
over the next six months include metals, textile-
clothing, and energy. The extension of payment
delays in the next six months is anticipated within
the pharmaceuticals sector, but more notably by
the construction and transport sectors. In the
construction sector, half of companies expect
to see increasing payment delays, while 23%
anticipate a decrease. In the transport sector,
while half of the respondents expect that
payment delays will increase, only 11% believe they
will decrease.

Chart 7: Chart 8:
Expected developments in outstanding receivables, Most effective actions in the case of non-payment
by size of companies’ counterparties

Increase     No change    Decline Other

70% 65%
Monitoring and
Arbitration debt collection
60%
or mediation 9% by company’s
internal
50% 45%
10% resources
42%
34%
40% 36% 35%
29%
30% 25%

20%
46%
14%
10%
10% Debt collection
using third
0% party services
Small companies Medium companies Large companies

Source: Coface Payment Survey Source: Coface Payment Survey

Chart 9:
Expected changes in the size of outstanding receivables
over the next six months (figures in balance points)

Metals -57.7

Textile-clothing -53.0

Energy -31.0
Agri-food -28.9
Automotive -23.1
Paper-wood -20.4
Retail -18.5 Payment delays in the retail
Average -13.9 sector tripled over
ICT -4.9 the course of one year
Chemicals -3.8
Pharmaceuticals 7.8
Construction 27.3
Transportation 38.9

-60 -40 -20 0 20 40 60

Source: Coface Payment Survey Decrease Increase

FEBRUARY 2019
6 COFACE ECONOMIC PUBLICATIONS POLAND PAYMENT SURVEY 2019
SURVEY

3 ECONOMIC EXPECTATIONS
SALES AND PROFITABILITY WILL RISE

• Optimistic assessments have been made

regarding companies’ perspectives. 52% of
companies surveyed expect that their profitability
The economic situation will rise in the next six months (compared to 51%
is crucial for business in the previous survey), whereas 39% anticipate
that it will decrease. Regarding sales volumes,
expansion 33% of companies expect that these will increase,
while 30% of businesses expect a drop in sales.
Chart 10:
Future sales by sectors • In a sectorial split, an improvement in sales is
particularly expected by the textile-clothing,
Increase    No change    Decrease automotive, and energy sectors. By contrast, the
pharmaceuticals, metals, and construction sectors
Agri-food forecast lower sales over the next six months.
100%
Transportation Automotive
• 36% of companies plan to invest in their
80% expansion, 40% do not intend to do so, and nearly
24% have not made any decision on this matter.
60% The most often reported factors that could limit
Textile-clothing
40%
Chemicals businesses’ expansion include the economic
situation, fierce competition, and the associated
20% fiscal burden.
0%
Retail Construction • Above half of the surveyed companies (54%) plan
to focus on a domestic market, while the rest
intend to expand into foreign markets – mostly in
European Union countries, but also considering
Eastern destinations (Russia, Ukraine, Asia).
Pharmaceuticals ICT

52%
Paper-wood Energy
Metals

Source: Coface Payment Survey

OF COMPANIES
Chart 11: foresee higher profits
Future profitability by sectors

Increase    No change    Decrease

Chart 12:
Factors that might limit the expansion of business
Agri-food
(several answers possible)
100%
Transportation Automotive
80% 94%
Economic situation

60%
Strong competition 79%
Textile-clothing Chemicals
40%
Taxes and other fiscal burdens 76%
20%

0% Possible law changes 68%

Retail Construction

High labour costs 56%

Difficulty in obtaining financing 36%

Pharmaceuticals ICT
Limited demand 26%

Labour shortages 25%

Paper-wood Energy

Metals 0% 20% 40% 60% 80% 100%

Source: Coface Payment Survey Source: Coface Payment Survey

FEBRUARY 2019
 COFACE ECONOMIC PUBLICATIONS POLAND PAYMENT SURVEY 2019 7
SURVEY

APPENDIX

A TOTAL OF

293
COMPANIES PARTICIPATED
IN THE PAYMENT SURVEY

Who were the respondents?

SIZE MAIN
OF COMPANIES BUSINESS
BY TURNOVER ACTIVITY

Micro
companies

Large
4.4% Services Manufacturing
companies Small
31.1% 24.2% companies 33.1% 35.5%

40.3% 31.4%

Medium Trade
companies
Source: Coface Payment Survey Source: Coface Payment Survey

SECTORS
OF SURVEYED COMPANIES
6.1%
4.1% Other 13.0%
Transportation Agri-food

7.5%
Textile-clothing
8.9%
Automotive

9.2%
Retail
8.9%
Chemicals

10.2%
Pharmaceuticals 7.5%
Construction
6.1%
Paper-wood 9.2%
4.4% ICT
Metals 4.8%
Energy
Source: Coface Payment Survey

FEBRUARY 2019
DISCLAIMER
This document reflects the opinion of Coface’s Economic Research Department, as of the date

— Photo: Fotolia
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