Despite a massive increase in overdue receivables due to the pandemic, Polish industry is largely upbeat about the outlook for 2021.
Introduction
Domestic consumer demand underpins Poland’s economy and in many ways has helped to at least partly insulate it from potential threats such as Brexit, US import tariffs and the coronavirus. In some markets, including neighbouring Slovakia and to a slightly lesser degree, the Czech Republic, B2B credit dropped dramatically as a result of the pandemic downturn, as businesses tried to minimise the risks associated with selling on credit.
The story was different for Poland, however, where there was an increase in the use of trade credit. This is clearly a strong sales strategy employed by businesses in an increasingly competitive market. The pandemic-induced economic crisis appears to have had a lighter touch on Poland than in other countries in the region.
Key takeaways from the report
- Polish businesses seek to encourage sales on the domestic market by increasing the amount of trade credit offered to B2B customers.
- The country experienced an average 76% increase in late payments following the onset of the pandemic.
- 71% of the businesses surveyed in Poland chase unpaid bills with reminder notes.
- When facing a squeeze on cash flow, businesses in Poland frequently withhold payment to suppliers until their liquidity improves.
- Most of the businesses surveyed in Poland expect the domestic economy to improve in 2021
Interested in getting to know more?
For a complete overview of the corporate payment behaviour in Poland during the COVID-19 pandemic and global recession, please download the complete report. The report gives also insight into the impact of the pandemic-induced economic crisis on the following industries in the country:
- Agri-food
- Chemicals
- Construction
- ICT/elctronics
- Machines
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