Thailand's Credit Term Rules for SMEs Take Effect on November 2 to Enhance Cash Flow

Key summary

The Trade Competition Commission (TCC) of Thailand has published new regulations limiting credit terms for trade transactions, effective November 2, 2026. The rules cap payment periods at 30 days for agricultural products and up to 45 days for general trade, production, and services. These measures aim to address structural issues where SMEs face prolonged payment delays from large counterparties, thereby improving liquidity and reducing negotiation disadvantages. The regulations also require advance notice of at least 60 days for any changes to credit terms or contract conditions without valid reason. Additionally, the TCC will accept evidence from large buyers regarding information within their knowledge to assist SMEs in disputes. Deputy Prime Minister and Commerce Minister Supachai Sudthidong led efforts to promote fair trade, while a separate meeting on October 21, 2026, focused on reducing platform business costs. The new rules are expected to inject approximately 250 billion baht into the SME economy if payment terms reduce from 60 to 45 days, or up to 750 billion baht if reduced from 90 to 45 days, benefiting over 3 million SMEs.