Reduced payment term to be complied with by large companies

Large companies that source from SMEs are increasingly taking more time to settle their suppliers’ bills. It is not uncommon for large companies to dictate the payment terms governing their transactions involving SMEs. Cases have in fact been documented of large companies having unilaterally extended their own payment terms. There has been a marked increase in the occurrence of such “payment stretching” practices since the start of the COVID‑19 crisis, with the smaller market players being pushed into dire straits financially as a result. The Junior Minister for Economic Affairs and Climate Policy has recently submitted proposed legislation which is intended to offer SMEs some much-needed relief by reducing the statutorily defined maximum payment term to be adhered to by large companies in their dealings with SMEs to 30 days (down from the current maximum of 60 days).

Dutch version: Verkorting betaaltermijn grootbedrijf