Economy
Thailand’s Trade Competition Commission Moves to Regulate Extended Credit Terms
The Trade Competition Commission (OTCC) is upgrading its guidelines on credit terms to mandatory regulations to protect SMEs from excessive payment delays.
According to a report by Prachachat Business on August 18, 2026, the Trade Competition Commission (OTCC) has approved a draft regulation aimed at curbing unfair credit terms between large-scale wholesalers/retailers and Small and Medium Enterprises (SMEs).
Previously, the OTCC relied on non-binding guidelines established in 2021. However, the commission identified that many small businesses were being forced to wait between 60 and 180 days for payments, effectively trapping over 200 billion baht in working capital within the system annually. By transitioning these guidelines into formal regulations, the OTCC intends to introduce enforceable penalties for non-compliance.
For residents and business owners in Thailand, this shift is significant as it aims to improve liquidity for smaller suppliers, potentially stabilizing the supply chain for local goods and services. While the move is intended to foster a fairer economic environment, the specific details regarding the enforcement timeline and the exact structure of the penalties remain to be confirmed. Stakeholders are currently awaiting further official announcements regarding the implementation of these new rules.