Shortening of payment term for large companies in the offing
Large companies have been under the obligation for the past two years to settle the invoices their SME suppliers raise with them within 60 days of the invoice date, this being the statutorily defined maximum payment term. The legislation in question appears to be causing the payment term to be lengthening. According to Graydon the term of payment from large companies to companies in the SME sector – having dropped to 36.5 days on average in the immediately preceding years – averaged out at 41.5 days in 2018.
In so far as the evaluation of the “Netherlands Act Providing for a Maximum Sixty Day Payment Term to be Adhered to by Large Companies” (or “Act on Large Companies’ Maximum Payment Term”, to call it by its slightly less cumbersome name), which is scheduled to take place this summer, bears out that large companies have come to use the maximum payment term as their standard, the Junior Minister for Economics and Climate Policy – not to be outdone – intends to shorten it from 60 to 30 days.
Dutch version: Verkorting betaaltermijn grote bedrijven in zicht