The success factor

Poland's 10 largest factoring institutions have established the Polish Factorers' Association (PZF) to replace the previous Conference of Factoring Institutions. "The child has matured," said the chairman of PZF's executive committee and the president of Polfactor SA, Elźbieta Urbańska.

"We will continue to concentrate on promoting factoring services in Poland," Urbańska said, adding that education as well as "working on changes in the legal environment" are PZF's other top objectives.

Factoring companies buy accounts receivable from firms looking to obtain payment faster than they normally would from their clients. As a standard payment period between businesses is 90 days, factoring services allow companies to maintain liquidity when in need of quick cash. This is especially popular in the grocery, services, construction and steelworks sectors.

"Factoring is a much easier way of financing in comparison to a loan," the general director of Bibby Factors Polska and deputy chairman of ZPF's executive committee, Krzysztof Kuniewicz, said.

The results achieved by Polish factoring institutions in the first five months of the year indicate a growing demand for the service. The market has grown by about 18 percent year-on-year, reaching zł.6.3 billion. With the exception of Eurofaktor, which changed its business profile, all members of PZF have noted significant growth rates, ranging from 16 percent to as much as 164 percent.

"I'm counting on surpassing zł.16 billion in joint turnover," Kuniewicz says. In 2005 the factoring market in Poland amounted to about zł.14 billion.