How do businesses manage their overdue accounts receivable? Evidence from Poland

Purpose To identify and characterize policies for managing overdue receivables among Polish enterprises. Design/methodology/approach The survey using the computer-assisted web interviewing method was applied. Based on the 754 responses to the designed survey questionnaire, a clustering method was conducted to analyze three proposed policies for managing overdue receivables. Logit models were then applied to determine the factors affecting the implementation of these policies. Findings Based on the literature review and the experience of the paper's authors, three types of overdue receivables management policies were proposed, namely confrontational, prudential and relations-based, and then the factors affecting the choice of each policy were identified along with their strength. Research limitations/implications The research concerns only the Polish market, although the proposed solutions can also be applied in other countries with a similar business environment. Practical implications Enterprises may have different policies for managing overdue receivables depending on their attitude to risk and their relationship with the environment. A relations-based policy is recommended for temporary payment problems with counterparties, as it supports maintaining long-term business relationships with various stakeholders. Originality/value The paper identifies new directions for research on overdue receivables management policies among Polish enterprises. The applicability of the study lies in the company's ability to determine what kind of policy it wants to pursue and its consequences.