According to the latest data of the NBP, the NPL (non-performing loans) market in Poland is worth nearly 75 billion zloty, including 40 billion retail receivables and 35 billion – corporate receivables.
While the individual receivables market may be considered as relatively saturated (nearly one third of the NPL portfolio (11.8 billion out of approx. 40 billion zloty) was put on sale in 2017), only 2 billion worth of nominal value from the corporate receivables portfolio, which reaches 35 billion zloty, were sold. According to the sellers, the market is suffering from a serious deficit of competences with respect to business portfolio valuation and service, which results in reduced attractiveness and lower prices. For banks, this means difficulties in obtaining partners to conduct the largest, most complex transactions. The increasing loan activity in recent years, stricter capital requirements for financial institutions and the gradual consolidation of the banking sector should bring a systematic growth in this market sector, even by 50% annually.
The part of mortgage and institutional (corporate and SME) portfolios that is sold is constantly increasing. Our findings demonstrate that the sales in this area are moving from the portfolio format to the so-called Single Names or Special Situations, i.e. single corporate debts to large companies. The service often includes taking over and restructuring the enterprise or the debt, finding an investor or conducting (or participating in) bankruptcy proceedings. It also quite often involves the liquidation of assets, large investment, commercial or industrial properties.
Apart from that, increased supply results from:
The competition on the Polish market is large and highly specialised, so international players are forced to act in partnership with local enforcement agencies or to perform acquisitions. This is why their activity will rather foster further development and consolidation of the sector, which should be seen as an opportunity for reverse expansion with use of our know-how in synergy with the international experience of investors.
Pragma Inkaso was established in 2002. It has been providing support and services for B2B receivables since then. Our company has also provided financing for entrepreneurs in form of factoring, loans or discounting invoices since the start of its operations. Our wide experience in security valuation, obtained in the course of our activity, encouraged us to enter a new market segment – corporate bank receivables. In 2014, the company established the first securitisation fund and started purchasing from banks. Currently, we are the investor and service provider of 4 fund and we manage a total portfolio of assets worth over 1 billion zloty.
The Pragma Inkaso SA Group was established in 2002. Since then, it has been focusing on activities in the corporate debt enforcement and business financing areas. Basing on the experience of the Group, Pragma Inkaso SA specialises in acquiring and servicing corporate, SME and mortgage portfolios and receivables. Pragma Inkaso is listed on the Warsaw Stock Exchange.
Pragma Inkaso is an NPL expert, whose perfect market knowledge allows it to operate skilfully in the most difficult sector – SME and corporate receivables.
Wide knowledge and experience are elements of our business DNA. We are a specialised partner for banks: we respond to their needs promptly and realise processes efficiently in tailored transactions.
This enables us to acquire portfolios of the highest quality, while good relations with sellers allow us to build long-term, fruitful cooperation.
Our operational methods make us different from competitors in this area as well. We do not manipulate, we never use unbearable pressure, we do not yell, we do not offer settlement at high interest rates.
We do not torment debtors with incessant phone calls, because we do not use a call centre in the traditional way. Our employees work in a comfortable environment. They are truly dedicated and motivated.
We focus on solving business puzzles and finding the best solutions. We are really good at it and absolutely honest about it. We always strive to reach an agreement. Having determined the facts, we are able to offer restructuring or a settlement without any interest charged, where the repayments are allocated to the principal amount. In justified cases we also accept partial debt redemption. As long as the debtors are willing to cooperate and their intentions are supported by actions, we always look for a compromise.
We never use the term “unreasonable proposal”. As long as the justification is convincing and compliant with our findings, we consider all possible situations and options.
Hard enforcement, debt enforcement officer, or receiver? Sometimes, we are forced to take more radical debt enforcement actions. This usually happens when we deal with cynical players, entrepreneurs who attempt to conceal their income and property, whose creativity and legal support are often worthy of the great financial world. In such cases, we fight ruthlessly in all areas, starting from field and legal activities, through confrontation and enforcement actions with the participation of the creditor, to securing interests and waiting for the debtor’s first false step.
These battles often last for years, but in a 3-5 years’ perspective they result in the satisfaction of the creditor. If we know that the debtor owns property and does not express will to reach agreement, we often conduct multiple thread operations, consistently striving to enforce the payment.
We are proud of our individual approach to our Customers and the ability to prepare safe valuations with use of innovative statistical methods.
We possess a high level of expertise and we perfect understanding of the in-house and bank outsourcing processes. We have long-term experience in providing legal support and enforcement of corporate receivables.
The synergy of our actions in the enforcement, factoring and financing areas is often a competitive advantage, which has contributed to winning tenders more than once. Our approach does not consist in a top-down classification of receivables, or in viewing the portfolio as a flat image. We realise that it is a living organism that interacts with its environment and our tools.
In all our activities, we try to develop a concept on an individual basis and to design several alternative solution scenarios. We assume that, for portfolios with a recognised value loss (NPL), where the discount may reach even up to 98%, it is nothing special to present a pessimistic prognosis and multiply the risk. To the contrary, it is an art to find real value where others cannot see it.
This is the advantage of an expert.
The services we offer are based on long-term experience obtained while working in the banking environment, skilful negotiations on all decision-making levels of the Bank and the securitisation fund acting as a party to the transaction.
This enables banks to use the preferential assignment tool connected with the reduction of NPL levels, the tax shield and to act on a market regulated by the FSA with a trustworthy partner. If you are interested in buying out your debt from a Bank, tell us your story.
The offer is addressed particularly to entrepreneurs who have lost their financial liquidity and do not repay their liabilities to the banks, but who are able to obtain an investor or accumulate funds to buy out their debts with a significant reduction.
We offer negotiations with banks and we enable banks to make assignments to the securitisation fund. This provides a possibility to use preferential taxation and to prevent the transaction from affecting the bank’s overall result.
If you know that a given real property is collateral of a non-performing loan, we will be glad to help you acquire it by buying out the debt from the Bank, negotiating with the debtor or by means of enforcement.
However, if you are just looking for a good investment opportunity and you do not have any precisely defined requirements, feel free to ask what mortgage receivables and real properties we can offer you.
Magdalena Nogieć
+48 665 040 899
npl@pragma.pl
Pragma Inkaso SA | ul. Czarnohucka 3 | 42-600 Tarnowskie Góry
National Court Register KRS 0000294983 | Taxpayer’s Identification Number NIP: 645 22 74 302 | REGON: 277810566
Phone.: +48 32 45 00 100 | Fax: +48 32 45 00 199 | E-mail: inkaso@pragma.pl
District Court in Gliwice, 10th Business Division of the National Court Register
Initial capital: PLN 3 680 000, paid in full.
Bank account number: 17 1020 2368 0000 2802 0232 6601 PLN
