Thailand's New Credit Term Rules for SMEs Take Effect on November 2 to Enhance Liquidity

Key summary

Subhasree Sudthampanun, Deputy Prime Minister and Commerce Minister, announced that new regulations limiting credit terms for trade transactions will take effect on November 2, 2026. The rules, published in the Royal Gazette on October 2, 2026, 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 cash flow and reducing negotiation disadvantages. The regulations also require a minimum of 60 days' notice for any changes to credit terms or contract conditions without valid reason. Additionally, the Competition Commission (KCC) will accept evidence from large buyers regarding their knowledge to assist SMEs in disputes. Related discussions on October 21, 2026, focused on reducing platform business costs and fees. The Thai SME Council estimates that reducing payment terms could release approximately 250 billion baht into the economy if shifted from 60 to 45 days, or up to 750 billion baht if shifted from 90 to 45 days, benefiting over 3 million SMEs.