New Regulation Mandates 45-Day Payment Terms for SMEs in Thailand
Starting November 2, 2026, large companies in Thailand must settle payments to SMEs within 45 days, ending the practice of 90-day credit terms.
According to a report by Thai Post, a significant regulatory change regarding trade credit terms is set to take effect in Thailand on November 2, 2026. The new rule mandates that large corporations must settle their payments to Small and Medium-sized Enterprises (SMEs) within a maximum period of 45 days. This measure effectively ends the common practice of 90-day credit terms that has historically strained the cash flow of smaller businesses.
Supajee Suthumpun, who spearheaded the initiative, stated that the regulation is designed to enhance liquidity for SMEs and foster greater fairness in commercial trade. By reducing the waiting time for payments, the government aims to stabilize the financial health of smaller suppliers who often struggle with long-term debt cycles imposed by larger partners.
For residents and business owners in Thailand, this shift represents a major adjustment in B2B financial operations. Improved cash flow for SMEs could lead to more stable local supply chains and potentially lower costs for goods and services in the long run. However, the full impact on corporate accounting practices and the specific enforcement mechanisms for non-compliance remain to be confirmed as the implementation date approaches. Stakeholders are advised to monitor official government announcements for detailed guidelines on how these new payment cycles will be monitored and audited.
