Poland

Overview

Chemicals production growth is expected this year, although at a slow pace, supported by GDP expansion forecast of more than 4%.


Many players have strong market positions, domestically as well as in Central and Eastern Europe. This enables them to focus on innovation (more than 20% of the existing patents in Poland stem from the chemicals sector) or to expand into new market segments with mergers and acquisitions.


Chemicals businesses’ profit margins are expected to remain stable this year. Gearing in the Polish chemicals sector is average, and many companies use investment credits in order to finance their investment projects for innovations.


Polish banks are generally willing to provide loans to the industry. The Polish benchmark interest rate has remained low at 1.5% since March 2015, and the subsequent low interest rates for credit has spurred chemicals businesses to use bank loans to finance their investments.


Payment practice

On average, payments in the Polish chemicals sector take 30 to 60 days, but can take 180 to 240 days. Payment behaviour has been good over the past two years, and the number of non-payments and insolvencies has been low.


Given the solid performance of the chemicals sector, no major increase in business failures is expected this year.

Risk

Loss of growth momentum due to lower global trade and risk appetite for EME

assets – a situation worsened by unorthodox policy-making.

Trade receivables risk mitigation

Third-party collections

Should your debtors fail to meet their payment obligations, Atradius Collections can help by initiating a professional collection process. We focus on the relationship between you and your debtors at all times.

Our team of collection specialists carry out the collection process in-house, contacting debtors both verbally and in writing whilst adhering to federal and state laws. When there is a case of dispute, we aim to reach an amicable solution between you and the debtor. We do this by analysing all contractual documents (e.g. signed contracts, orders, confirmations, invoices and delivery notes, as well as all standard terms that have been agreed upon).

All investigations are completed with the assistance and agreement of our legal team.

Legal collections

If third-party collections do not yield results, we would consider taking legal action after consulting with you.


It is obligatory to send a written request for payment to the debtor before starting any legal action in court.


When both parties in dispute are conducting business activities, the commercial courts review the case. This kind of legal proceedings was established in 2011 to speed up the court’s decision.


Some simplified legal proceedings can also be run by the E-Court in Lublin. Poland was a signatory to the European Council Regulation (EC) 805/2004, which allows creditors to enforce European Enforcement Order (EEO). We provide a service for obtaining an EEO in your location to be enforced in the debtor’s country.

Risk migration insights Spain