Table of Contents
- 1 Longer payment terms, particularly in transport
- 2 Late payments, a common practice that is decreasing
- 3 Despite strong competition, almost half of companies expect business to improve in 2025
- 4 **How can the Polish government and financial institutions collaborate to implement policies and programs specifically tailored to mitigate the impact of late payments on SMEs, particularly in sectors like transport and textiles?**
Our latest study1 on payment behavior in Poland reveals a reduction in average payment delays to 46.2 days thanks to the improvement in the economic situation, driven in particular by the recovery in household consumption. Although certain sectors such as transport and textiles continue to face difficulties, companies are confident for 2025.
Longer payment terms, particularly in transport
Short payment terms still dominate the Polish business landscape: 40% of companies surveyed impose average payment terms of less than 30 days. Average payment terms, however, increased from 42.4 days in 2023 to 46.2 days in 2024.
Sectors like transportation offer the longest terms, with credit periods reaching an average of 62 days (20 days more than in 2023), compared to 28 days in the energy sector which has the shortest terms .
Most Polish companies expect these payment deadlines do not change over the next six months regardless of the size of their customers.
Late payments, a common practice that is decreasing
Late payments are a common practice in Poland. 60.1% of companies surveyed reported having experienced late payments in the last six months, a figure that has increased significantly (49.3% of companies reported having experienced them in 2023).
Average payment delays decreased by 2.5 days between 2023 and 2024 to reach 46.2 days. This improvement has been regular since 2021, when delays still reached 48 days.
The disparities between sectors are strong. Transport records the longest delays, with 61.6 days on average, up almost 18 days compared to 2023. Other sectors, such as textiles and clothing (58.2 days), also show significant delays. These prolonged delays continue to affect the financial stability of companies, especially those most exposed to foreign markets, such as Polish carriers to Western Europe.
In this context, the management of these unpaid receivables remains a challenge for Polish companies which mainly rely on their internal resources for these activities.
Despite strong competition, almost half of companies expect business to improve in 2025
The Polish economic outlook for 2025 is promising, with a GDP growth rate estimated at 3.5% by Coface. This recovery in activity is mainly supported by household consumption and investments in fixed assets.
Nearly 45% of companies, however, believe that strong competition limits their expansion while high operational costs continue to weigh on profit margins. While falling inflation could reduce wage pressure, rising minimum wages and competition will continue to limit the increase in margins.
Despite these structural challenges, the recovery of the economy should allow greater stability in payment terms and a continued reduction in delays, allowing businesses to grow.
Download our complete payment study (pdf in English only).
**How can the Polish government and financial institutions collaborate to implement policies and programs specifically tailored to mitigate the impact of late payments on SMEs, particularly in sectors like transport and textiles?**
## Interview: Polish Payment Landscape in Flux
**Website:** world-today-news.com
**Introduction:**
Welcome to World Today News. Today, we’re diving into the intricacies of the Polish payment landscape with two esteemed guests. [Guest 1 Name and Credentials], an economist specializing in Central Europe, and [Guest 2 Name and Credentials], a seasoned financial advisor working with Polish SMEs. We’ll be unpacking Coface’s recent study on payment behaviour and exploring its implications for businesses and the broader economy.
**Section 1: Economic Recovery and Payment Trends**
* **Host:** The Coface study highlights a positive trend: a decrease in average payment delays to 46.2 days, driven by economic improvement. While promising, how significant is this reduction in practical terms, especially for sectors still struggling with longer payment terms, like transport and textiles?
* **Guest 1:** I see both opportunity and challenge here. The economic recovery is undoubtedly a tailwind, but its impact is unevenly distributed. Perhaps we could discuss the factors behind the disparities between sectors.
* **Guest 2:** It’s crucial to remember that while an average reduction is positive, it masks individual stories. A delay of even a few days can be crippling for smaller businesses. How can these vulnerable companies navigate this environment?
**Section 2: Late Payments: A Persistent Challenge**
* **Host:** Despite the overall improvement, late payments remain a persistent problem. The study revealed a significant increase in the percentage of companies experiencing them. What are the underlying causes of this trend, and what strategies can be employed to mitigate its impact?
* **Guest 2:** I see a strong link between late payments and the reliance on internal resources for managing receivables. Smaller businesses often lack the dedicated teams and tools needed for efficient collections.
* **Guest 1:** We shouldn’t overlook the broader economic context. Inflationary pressures and fluctuating input costs can put a strain on liquidity, leading businesses to delay payments.
**Section 3: Outlook for 2025: Promise & Predicaments**
* **Host:** The study paints a cautiously optimistic picture for 2025, with GDP growth projected at 3.5%. However, challenges remain, such as strong competition and high operational costs. Are these factors likely to overshadow the potential benefits of economic expansion?
* **Guest 1:** I believe the key lies in targeted policies that address the structural bottlenecks.
Supporting innovation and fostering a more friendly business environment can unlock significant growth potential.
* **Guest 2:** Small businesses need practical tools and advice to navigate this complex landscape. Financial literacy programs and access to affordable financing options can be game-changers.
**Concluding Remarks:**
* **Host:** Thank you both for this insightful discussion.
It’s clear that the Polish payment landscape is evolving rapidly. While the economy shows signs of recovery, challenges remain, particularly for smaller businesses. By understanding these complexities and adopting proactive strategies, businesses can position themselves for success in the years to come.
