Polish Factors Association (PFA) federates the largest factoring companies operating in Poland. The mission of the PFA is to promote factoring and educate Polish companies on its benefits.

is a financial instrument that combines working capital financing, credit risk protection, accounts receivable bookkeeping and collection services. It is offered under an agreement signed between the factor and a seller. Under the agreement, the factor purchases the seller's accounts receivable.

The Convention on International Factoring formulated in Ottawa provides a precise definition of factoring. A factoring contract is a contract signed between a supplier (seller) and another party (factor) under which:

1. The supplier assigns to the factor claims arising from a merchandise sale contract concluded between the supplier and his customers (debtors).
2. A factor must perform at least two of the following functions:
• financing for suppliers including loans and advance payments;
• keeping accounts related to the claims;
• collection of claims;
• protection against debtor´s payment default.
3. The debtors must be notified of the assignment of the claim.

The main types of factoring available in Poland are domestic factoring (recourse, non-recourse) and export factoring (recourse, non-recourse) as well as import guarantees.

If you have questions to ask, please contact us on: pzf@faktoring.pl