Factoring market in Poland and in Germany – comparative analysis

Abstract

The main goal of the paper was to compare the development and operations of the factoring market in Poland and in Germany. In the course of the survey we positively validated the thesis stating that dynamic development of factoring can be achieved in both countries. Differences in how these markets operate and in their development have turned out to be little relevant. Although less developed, the Polish factoring market grew faster than the German one gradually closing the gap between the two markets. The main differences between factoring markets in Poland and in Germany can be explained by some differences in operating principles according to which they work and can be attributed predominantly to giving preference to diverse types of factoring, sectoral composition of factoring turnover, directions of factors’ international cooperation, their communication strategy as to how inform
the debtors about the conclusion of a factoring transaction, the share of revenue from ancillary services in total revenue as well as payment terms of debts that they have purchased.