Maximum payment term from large companies to SMEs will be reduced to 30 days

The maximum legal payment term for large companies to SMEs is halved to 30 days. With this, the caretaker government wants to make this payment term equal to that of the government.

This proposal can be read in parliamentary documents submitted by Mona Keijzer (Economic Affairs and Climate), also on behalf of Minister Sander Dekker (Legal Protection). According to the submitters, a financing gap of 55 billion euros to the detriment of SMEs will be partly filled if the proposals are adopted. According to the government, 'simply paying on time' should become the norm.

Large companies are increasingly paying small and medium-sized entrepreneurs later, according to research. The payment term is also often determined by large companies and sometimes even extended unilaterally. This phenomenon has increased due to the corona crisis, which can cause problems for SME entrepreneurs. For example, the cash position deteriorates and SME entrepreneurs have difficulty obtaining sufficient working capital.

Members of FHI showed, among other things, during working visits to politicians, knew that action had to be taken on this point. MKB-Nederland also wanted the Ministry of Economic Affairs and Climate Policy would take action.

Last January, the Netherlands Authority for Consumers & Markets (ACM) opened a temporary reporting point to gain insight into the payment behaviour of large companies to SMEs. The Ministry of Economic Affairs and Climate Policy will evaluate the results after one year to determine whether independent supervision should be established in addition to the amendment to the law to change the maximum permitted payment term.

Read more at the central government.