Thailand Implements New Payment Deadlines for SMEs

Thailand has introduced new payment deadlines aimed at alleviating cash flow challenges for small and medium-sized enterprises (SMEs). The Commerce Ministry has established limits on payment periods, setting them at 30 or 45 days for covered transactions.

The Trade Competition Commission has mandated maximum payment deadlines of 30 days for agricultural goods and 45 days for general trade, manufacturing, and services. These rules are intended to support over 3 million SMEs.

The new regulations are expected to free up up to THB 750 billion in working capital for SMEs, decreasing their reliance on loans for operational expenses. Additionally, the rules include provisions for 60 days' advance notice for any changes to payment terms.