Small developers face bankruptcy

Small developers face bankruptcy

The smallest developers have the biggest problems. They are the ones who usually end up on debtors’ lists.

Data of the National Debt Register (KRD) show that the largest number of indebted developers is located in the Mazowieckie voivodeship (1020, for the amount of PLN 55 million), and in the Śląskie voivodeship (564, for PLN 20.7 million). In turn, in the data of the debtors register BIG Info Monitor and of the Credit Information Bureau, one can see as many as 2709 indebted developers from the Mazowieckie Voivodeship for the amount exceeding PLN 1 billion. In the Śląskie voivodeship, 1777 companies from this industry have to pay 170 million PLN. The largest average debt amounts to PLN 629.2 thousand and concerns companies from the Podkarpackie province.

Half of the indebted developers are sole proprietorships. The other half are commercial law companies. Many debtors in this industry are small family businesses, which carry out local residential investments.

The number of bankruptcies in this industry is likely to increase in the nearest future. The activity of developers is hampered by the rising prices of products, their unavailability and the lack of workforce. Moreover, the creditworthiness of Poles is decreasing. An increase in the number of bankruptcies may also affect the executive branch, which is also struggling with rising prices.

Source: https://businessinsider.com.pl/firmy/deweloperzy-na-listach-dluznikow-na-pewno-czesc-firm-upadnie/cmyx3b0

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