Thailand Enforces Stricter Credit Terms to Release THB250bn Working Capital for SMEs
New regulations taking effect on 2 November aim to curb delayed payments by large firms, injecting billions back into the SME economy
- Thailand is implementing new mandatory credit guidelines, effective November 2, 2026, to prevent large corporations from delaying payments to small and medium-sized enterprises (SMEs).
- The stricter rules establish maximum payment deadlines of 45 days for general trade and services and 30 days for agricultural goods, shortening previous cycles that could last 60-90 days.
- This reform is expected to release at least THB250 billion in working capital into the economy, allowing SMEs to cover operational costs without relying on high-interest loans.
New regulations taking effect on 2 November aim to curb delayed payments by large firms, injecting billions back into the SME economy.
Mandatory new trade credit guidelines will come into effect on 2 November 2026 to prevent large corporations from delaying payments to small and medium-sized enterprises (SMEs), in a move expected to release at least 250 billion baht in working capital.
Pushed by Deputy Prime Minister and Minister of Commerce Suphajee Suthumpun, the Trade Competition Commission (TCC) notification was published in the Royal Gazette on 2 October.
The reform addresses structural liquidity challenges that leave small vendors bearing heavy operational overheads while waiting months for settlement.
New payment timeframes
The new rules establish clear statutory deadlines for commercial settlements: 30 days for agricultural goods and basic processed agricultural products. 45 days for general commercial trade, manufacturing, and services.
To prevent evasion, buyers must provide at least 60 days’ advance notice before altering contract conditions or payment terms.
Furthermore, in regulatory disputes, large buyers will bear the burden of proof regarding facts within their exclusive knowledge, alleviating procedural burdens on SMEs.
Economic impact and industry reaction
Supree Thongphetch, president of the Thai SME Council, welcomed the measures as a vital lifeline for more than three million SMEs.
"Shortening payment terms from 60 days to 45 days is expected to inject approximately 250 billion baht in working capital back into the economy," Supree noted, adding that reducing 90-day credit cycles down to 45 days could unlock up to 750 billion baht in total liquidity.
The cash influx will allow smaller firms to settle raw material costs and wages without resorting to high-interest loans to sustain daily operations.
Assoc Prof Sutharm Yoonaitham, member of the TCC, emphasised that the rules establish standard business practices across supply chains.
Operating as an independent regulatory body under the Ministry of Commerce, the TCC will enforce compliance strictly whilst supporting businesses in adapting to the framework.
Broader platform cost reforms
Alongside credit terms, the Ministry of Commerce is tackling operating costs across digital platforms.
Following consultations with platform operators on 21 October, the ministry is formulating long-term regulatory frameworks to manage commission fees and platform charges, ensuring fair competition within Thailand's growing digital economy.
