Thailand sets new payment deadlines to ease cash flow pressures on SMEs
New rules limit payment periods to 30 or 45 days for covered transactions as the Commerce Ministry also addresses digital platform costs.
- Thailand's Trade Competition Commission has set new maximum payment deadlines to support small and medium-sized enterprises (SMEs): 30 days for agricultural goods and 45 days for general trade, manufacturing, and services.
- The primary goal of the new rules, effective November 2, is to improve cash flow and liquidity for over 3 million SMEs facing lengthy waits for payment from larger business partners.
- The shortened payment periods are estimated to release up to THB 750 billion in working capital back into the SME sector, reducing their need for loans to cover operational costs.
- The regulations also include safeguards against unreasonable payment delays and require a minimum of 60 days' advance notice for any changes to payment terms or contracts.
Commerce Minister Suphajee Suthumpun’s push for fairer trade has advanced with new rules addressing the lengthy payment periods imposed on small and medium-sized enterprises (SMEs) by large trading partners.
The Trade Competition Commission’s notification was published in the Royal Gazette on Friday (October 2, 2026) and will take effect on November 2.
The move marks another important step towards improving trade rules, reducing disparities in bargaining power and increasing liquidity for smaller businesses.
The rules address the structural problems caused by lengthy waits for payment, which affect SMEs’ liquidity and ability to operate.
They set a maximum payment period of 30 days for transactions involving agricultural goods and agricultural products that undergo basic processing using simple production methods, and 45 days for general trade, manufacturing and services covered by the notification.
They also provide safeguards against payment delays without reasonable grounds.
The safeguards also cover changes to payment periods or contract terms without at least 60 days’ advance notice, under the conditions specified in the rules.
A mechanism is also provided for large buyers to present facts and evidence to the commission when the relevant information is within their knowledge, helping to ease SMEs’ burden of proof.
The payment-term framework also serves as an important mechanism to promote fairness between trading partners, reduce bargaining disadvantages and help smaller businesses manage cash flow, plan their operations and continue trading.
These are important foundations for strengthening SMEs’ long-term competitiveness.
Meanwhile, the Commerce Ministry is coordinating with relevant agencies to address other business costs.
This included a meeting chaired by Suphajee on October 21, to discuss ways to tackle high goods prices and living costs in relation to platform businesses.
Discussions focused on fairer practices in platform businesses to reduce SMEs’ costs and give them greater opportunities to compete.
The work encompasses immediate measures and the development of long-term oversight mechanisms.
Relevant agencies discussed ways to address platform fees and commissions, alongside the development of competition rules suited to the digital economy, to enable fair competition and benefit consumers and the wider economy.
The ministry is continuing to pursue fairer trade by addressing lengthy payment periods through the payment-term rules and reducing the cost of operating on digital platforms.
It is also strengthening competition mechanisms to support SMEs, improve liquidity and create a business environment conducive to sustainable growth.
Supree Thongpetch, president of the Thai Small and Medium Enterprises Council, said the new rules were a significant step towards tackling SMEs’ liquidity problems.
Smaller firms, in particular, have faced lengthy waits for payment while having to cover wages, raw materials and other operating costs.
Supree estimated that cutting payment periods from 60 to 45 days would return about THB250 billion in working capital to the SME sector.
Reducing them from 90 to 45 days could release up to approximately THB750 billion in additional liquidity.
This would allow businesses to use the funds in their operations, pay for raw materials and wages, and reduce their reliance on borrowing to sustain their activities.
The measure aims to support more than 3 million SMEs so they can continue operating and compete more fairly.
Assoc Prof Sudharma Yoonaidharma, chairman of the Trade Competition Commission, said prolonged waits for payment were affecting SMEs’ liquidity and ability to operate.
Shorter payment periods would help establish standards for business practices and reduce the scope for using trading conditions that disadvantage smaller firms.
The Trade Competition Commission, an independent body under the supervision of the commerce minister, follows government policy to preserve the ability of smaller businesses in remote areas to operate by helping ensure they have working capital.
Such capital is an important factor in economic and community development.
The commission aims to enforce the rules in accordance with the law and the conditions set out in the notification, promoting fair competition while helping relevant businesses understand, adapt to and comply with the requirements.
