Today's issue of "Rzeczpospolita" publishes the third article of a cycle under the project "Business without borders" ("Biznes bez granic") run by Citi Handlowy. In the third part of the series Piotr Kalisz, Chief Economist of Citi Handlowy, comments on the investment growth rate in Poland and Agnieszka Sumera-Adamowicz, Head of Structured Finance in the Trade Finance Department at Citi Handlowy, talks about factoring and receivables finance programs

Soon, the entrepreneurs are going to start investing on a large scale. They should support their activities with optimal instruments, reads "Rzeczpospolita". According to the projections voiced by experts, the Polish economy is finally gaining momentum. While the GDP of Poland in 2013 rose by 1.3 - 1.4 percent , the new year may bring about an improvement by up to 3 percent. In such favorable environment, the Polish companies will finally start making investments, thereby additionally boosting economic revival. "In 2012 and 2013, companies withheld their investments, but yet in 2014 a growth in that area should be discernible. "Two years ago, the investment growth rate amounted to -1.7 percent, in 2013 it may stand at -2 percent, while this year its value should be positive, standing at 3.6 percent", comments Piotr Kalisz, Chief Economist of Citi Handlowy. "As many as 50 percent of medium and large companies are exporters who additionally got interested in non-European markets. The group of experts may additionally be joined by dynamically growing companies, which treat expansion to foreign markets as the next stage of their strategies", adds Małgorzata Starczewska-Krzysztoszek, Chief Economist of Confederation Lewiatan. A considerable demand for capital is an opportunity for the banks to offer new products to companies. The banks' corporate product ranges encompass not only loans, but also factoring, reversed factoring or securing export agencies. Such solutions enable the enterprises to keep liquidity at a stable level and secure them against risk related to delayed payments from counterparties.
In an interview to "Rzeczpospolita", Agnieszka Sumera-Adamowicz, Head of Structured Finance in the Trade Finance Department at Citi Handlowy, says: "The improving macroeconomic situation may bring about the companies' interest in, firstly, steps aimed at increasing sales, and secondly, solutions that will help them make investments" comments Agnieszka Sumera-Adamowicz, adding the following: "Proper operating capital management is of great significance for businesses that want to start growing quickly. Ensuring a proper liquidity level becomes a key issue when a company addresses the market with an aggressive sales strategy and makes significant purchases. Factoring is a tool that will help entrepreneurs secure their liquidity and at the same time keep their trading volume on the rise. It is one of the fastest-growing areas from among the products offered to the corporate segment. At Citi Handlowy alone, in 2013, we purchased PLN 6.7 billion receivables, thereby recording a growth of 31 percent YoY. According to what we have observed, receivables financing programs ever more frequently reach the basic product range encompassing methods of financing of Polish companies, in the same way as operating or commercial loans.

back