Debt exchanges in Poland

The Conference of Financial Companies prepared a special report from the third quarter of 2017 regarding the debt exchange in Poland. This is the fifth edition of the first Polish study describing the debt exchange market, prepared by prominent experts from KPF in cooperation with Big Consulting. Both the collected data and their analysis allow, among others to estimate the size of the portfolio of receivables put up for sale on the Polish stock market.

 

How much is recovery costs for entrepreneurs?

According to the report prepared by KPF, the total costs incurred by Polish entrepreneurs in July 2017 resulting from problem debt recovery amounted to 5.5 percent. total costs of obtaining sales revenues. On this basis, we can easily see the scale of such expenses.

Interestingly, as the Conference of Financial Enterprises notes, such a huge level of costs is primarily related to the low level of financial morality of Poles.

 

What are debt exchanges?

What are debt exchanges?

Debt exchanges, or online debt exchanges, are modern tools for debt management that are gaining popularity. Interestingly, they have been in Polish business for over 20 years. However, it is only the recent development of online tools that has significantly increased their relevance and effectiveness.

It is worth emphasizing that the market for information on claims in Poland that are put up for sale is very dispersed. According to the report, there are currently about 50 exchanges on which receivables are offered in the sale offer.

 

The most important conclusions resulting from the report – summary

The most important conclusions resulting from the report - summary

The report on debt exchanges shows us the current situation on the Polish market. Below are the most important conclusions resulting from the research.

  • The debt portfolio, which is offered for sale via the debt exchanges operating in Poland in the third quarter of 2017, reached a value of PLN 3 439, 80 million. Interestingly, the average debt value per one debtor amounted to 24.33 thousand. zł;
  • The largest group of debtors includes entrepreneurs living in the Mazowieckie voivodship (18 percent). In turn, the least numerous group are companies from the Podlasie voivodship (1.8 percent);
  • Entities operating in the form of registered economic activities of natural persons accounted for the largest share, in terms of the number of debtors and total debt, among organizational and legal forms. Namely 72 percent the total number of people whose debt is around 46 percent total debt;
  • Debtors who operate in the field of retail and wholesale had the largest percentage in the number of debtors (28.1%). However, considering the value of debt, enterprises operating in the construction industry proved to be unrivaled;
  • Indebtedness of closed, liquidated or bankrupt companies accounts for as much as 35 percent. total debt issued on debt exchanges.

“Debt exchanges, despite many years of market presence, have only recently gained in popularity. It was primarily influenced by the development of modern internet tools.