Poland attracts investment. How can SMEs prepare for larger contracts?

Poland remains one of the more attractive investment destinations in Europe. According to the EY Europe Attractiveness Survey, the number of foreign direct investment projects in Europe declined, but Poland maintained a strong position in the region. In the data discussed by XYZ.pl based on EY findings, Poland recorded 285 FDI projects, representing a 10% year-on-year increase. This is an important signal not only for large companies that directly attract capital, but also for smaller businesses that may become part of their supply chains.

A new investment rarely operates separately from the local market. It needs suppliers, subcontractors, service providers, transport, installation, logistics, technical support, advisors, construction teams, specialist contractors and partners who can deliver the project on time. For SMEs, this can be a real opportunity to win larger contracts, work with more stable clients and grow beyond their current scale.

But the opportunity itself is not enough. A larger contract also means higher requirements: a longer purchasing process, formal cooperation terms, higher execution costs, greater responsibility for deadlines and often a longer wait for payment. That is why a company that wants to benefit from incoming investment should prepare not only its offer, but also its liquidity, documentation and financing model.

Why can foreign investment be an opportunity for SMEs?

When people talk about foreign direct investment, the focus is usually on large numbers: new plants, service centers, warehouses, data centers, infrastructure projects or production investments. From the perspective of SMEs, however, something else matters most: every larger investment creates demand for local partners.

According to the Polish Economic Institute, Poland remains one of the key recipients of foreign direct investment in Central and Eastern Europe. PIE indicates that since the beginning of the economic transition, Poland has attracted USD 364 billion in FDI, which accounts for around 40% of FDI inflows into the CEE region.

For a large investor, entering a market does not end with choosing a location and launching the project. The operational base must still be organized. Some tasks go to large general contractors, but many works, services and supplies can be assigned to smaller companies. This is where space opens up for SMEs.

The greatest potential may appear for companies operating in areas such as:

construction and specialist works,
installation, technical maintenance and service,
production of components and supporting elements,
transport, warehousing and logistics,
equipment, supplies and operational support,
accounting, administrative, legal and advisory services,
technology, automation and process support.

For a small or medium-sized company, entering such a supply chain can mean a change of scale. Instead of several smaller orders, there may be one larger contract or longer-term cooperation with a major partner. This can improve revenue predictability, increase recognition and open the door to further projects. But a larger contract is not only a larger invoice. It is also a larger commitment.

A larger contractor means different requirements

Companies that work with large investors, capital groups or bigger contractors quickly notice that the process is more formal than in standard cooperation with a small client.

More often, there are:

detailed documentation requirements,
a longer offer approval process,
more complex contract terms,
stage and acceptance schedules,
a requirement to document experience,
the need to meet specific quality standards,
longer payment terms,
responsibility for delays or failure to meet agreed conditions.

This does not have to be a problem. For many SMEs, it is a natural stage of growth. The problem begins when a company treats a larger contract in the same way as a smaller order, only with a higher invoice value.

In practice, such a project requires preparation in advance. The company needs to know when costs will arise, when cash inflow will appear, what expenses must be covered before the first payment and whether it has enough buffer to maintain current operations while delivering the new order. If a company wants to grow through larger projects, it should look not only at potential revenue, but also at whether it has the financing, processes and data needed to deliver safely.

The biggest risk often lies in cash flow

SMEs often focus on winning the contract. This is understandable because a larger client may be an opportunity for growth. But after the contract is signed, another question appears: can the company afford to deliver the project without stopping the rest of its operations?

In larger contracts, costs often appear before revenue. The company must buy materials, pay people, involve subcontractors, rent equipment, order transport or prepare the operational base. Payment may come only after a stage is completed, accepted, documented and the payment term has passed.

This creates a liquidity gap. The project may be profitable on paper, but at the same time it may require cash that the company does not currently have in its account.

The market context shows that this is a real risk. The Intrum European Payment Report 2025 describes the impact of late payments on European companies and their growth opportunities. Data from BIG InfoMonitor also shows that liquidity problems translate into postponed obligations and growing arrears among companies.

That is why, in larger contracts, it is worth separating three things:

Is the project profitable?
Does the company have the operational capacity to deliver it?
Does the company have the liquidity to finance costs until the funds arrive?

Only answering all three questions shows whether the contract is a real opportunity or a risk that may overburden the company. If you want to explore the gap between execution costs and payment from the client in more detail, read also: Contract financing - how to take on bigger projects without blocking your cash.

What should SMEs check before entering a larger contract?

Preparing for larger cooperation does not have to mean creating a complex corporate strategy. Often, it is enough to organize a few areas that determine whether the company will be a reliable partner and whether it will keep control over liquidity.

1. The real cost of execution

The first step is to calculate costs not only at the level of the overall margin, but also over time. What matters is not only how much the company will earn on the project, but when it must spend money and when it will recover it.

The calculation should include:

materials and supplies,
labor costs,
subcontractors,
transport and logistics,
equipment, tools or rental,
administrative costs,
taxes and VAT,
a buffer for delays,
the potential cost of financing.

The margin percentage alone can be misleading. A contract with a good margin can still put pressure on liquidity if it requires high upfront costs and payment only after a project stage is completed.

If a company is planning a larger order and needs funds before receiving payment from the client, it may be worth considering business financing from PaveNow, including solutions tailored to larger B2B contracts.

2. Payment and acceptance terms

In larger projects, the date of issuing a sales document does not tell the whole story. What matters is when a stage can be settled, what the acceptance depends on, what the payment term is and whether the client can suspend payment due to formal reservations.

The company should therefore check:

whether payment is advance-based, stage-based or final,
what documents are needed for settlement,
who approves the acceptance,
whether the contract includes penalties or deductions,
whether payment depends on the main investor paying first,
how many days may realistically pass between incurring a cost and receiving funds.

This is especially important when an SME acts as a subcontractor for a larger company. In such a model, a delay at a higher level of the chain can quickly affect the smaller business.

3. Ability to maintain current operations

A larger contract should not stop the company from operating normally. If the execution of one project requires freezing most of the company’s cash, the business may struggle with servicing regular clients, salaries, taxes, leases or current obligations.

That is why, before signing the contract, it is worth checking whether the company has funds for:

current operating costs,
public liabilities,
previous cost invoices,
unexpected delays,
parallel service of other clients,
safe completion of the project even if payment is delayed by several weeks.

This is not a pessimistic approach. It is simply risk management.

4. Documents and financial data

A large contractor may expect more transparency than a smaller client. Sometimes, the company must quickly provide registration documents, financial data, certificates of no arrears, references, schedules, invoices, subcontractor agreements or cost documentation.

If company documents are scattered across emails, folders, messengers and spreadsheets, preparing them for a larger process can be time-consuming. The larger the contract, the more valuable it becomes to have an organized flow of documents, cost invoices and financial decisions.

This is where digitalization of financial processes helps. It is not only about convenience, but about control: who approved a cost, when the invoice reached the company, what the payment status is, how much cash will be needed in the coming weeks and which obligations may affect cash flow. If a company wants to organize invoices, costs, approvals and cash flow visibility, it can check PaveNow CFO Suite. For companies that want to focus specifically on cost documents, approvals and expense control, the PaveNow expense management module may also be useful.

Contract loan vs traditional factoring - why they are not the same

In larger contracts, the liquidity problem may appear earlier than at the invoice stage. The company is not always only waiting for payment for an already completed order. Sometimes it must first finance materials, people, subcontractors, transport or project preparation before it can even settle a stage of work. That is why, in this context, it is important to distinguish between traditional factoring and a contract loan.

Factoring is most often associated with financing already issued invoices. The company has delivered a service or goods, issued an invoice with a deferred payment term and wants to receive cash sooner. A contract loan responds to a different moment in the process. It can help when the company has a contract or order, but needs funds to execute it before receiving payment from the client.

This is especially important in larger B2B projects where:

costs appear at the beginning,
payment is stage-based or final,
the client pays after acceptance,
the company must maintain current operations while delivering the project,
its own cash should not be fully blocked in a single order.

When is it worth considering financing for a larger contract?

Financing should not replace calculation. It should complement it. First, the company needs to know how much the project costs, when expenses will arise and when it expects inflows. Only then can it assess whether external financing helps safely close the liquidity gap.

For larger contracts, financing may make sense when:

the project is profitable, but requires costs before payment,
the contractor has a longer payment term,
the company must buy materials or pay subcontractors earlier,
the project is larger than the company’s standard orders,
the company does not want to block all its own cash,
the bank credit process is too long or not suited to the contract schedule.

In this case, the purpose of financing is not to “save the company”, but to enable the delivery of a specific project without overburdening current liquidity.

Why is this topic important right now?

Poland attracts investment, but at the same time the business environment remains demanding. Large companies are looking for stable partners who can act on time, document processes and maintain liquidity. On the other hand, SMEs still face late payments, higher costs and pressure to finance current operations.

NBP data on foreign direct investment in Poland shows how important foreign capital flows are for the Polish economy. At the same time, payment reports such as the Intrum European Payment Report remind us that growing sales and larger contracts do not automatically solve liquidity problems. This means that sales readiness alone is not enough. A company that wants to benefit from new investments should prepare like a partner, not only like a contractor.

In practice, this means taking several concrete actions:

calculating execution costs before signing the contract,
checking the real schedule of inflows and expenses,
organizing financial documents,
defining the minimum liquidity buffer,
assessing the risk of payment delays,
preparing a source of financing before the project starts,
clearly distinguishing when a contract loan is needed and when financing after the service has been delivered is enough.

For SMEs, this can be the difference between a growth opportunity and a contract that looks good only on paper.

A larger contract should grow the company, not block its cash

Incoming investment in Poland can create new opportunities for smaller companies. SMEs can become suppliers, subcontractors and partners in larger projects, but only if they are prepared for the requirements of a larger scale. Winning the contract itself is not the most important thing. What matters is whether the company can deliver it safely: operationally, document-wise and financially.

That is why, before entering larger cooperation, it is worth checking not only potential revenue, but also costs, payment terms, formal requirements and the project’s impact on current cash flow. If the project is profitable, but requires cash before payment arrives, well-matched financing can help use the opportunity without blocking the whole company.