Thailand has introduced statutory limits on commercial payment terms to prevent large corporations from delaying settlements owed to small and medium-sized enterprises.
Published in the Royal Gazette on 2 October 2026, the Trade Competition Commission regulations take effect from 2 November 2026. The legislation directly addresses the protracted credit terms that have historically constrained working capital across the Thai private sector.
New Commercial Credit Limits
The framework establishes legally binding deadlines for corporate purchasers settling invoices with smaller suppliers.
Payments for agricultural produce and basic processed agricultural goods must now be completed within 30 days. For general trade, manufacturing, and service sectors, corporate buyers must settle all outstanding invoices within a maximum of 45 days.
Unilateral contract changes are prohibited. Buyers cannot alter agreed credit periods or trading conditions without providing at least 60 days of written advance notice. Furthermore, the regulation shifts the procedural burden during formal disputes. Large buyers must now present direct evidence to the commission to justify any payment withholding, relieving smaller suppliers of the obligation to prove improper delay.
Relevance for British Expats
For British nationals operating businesses in Thailand, the ruling provides enforceable protection against delayed cash flow.
Thousands of UK expatriates manage commercial ventures across the country, ranging from digital consultancies and design agencies to hospitality suppliers, engineering firms, and export companies. Smaller operators have routinely faced payment terms extending to 90 or 120 days when supplying nationwide retail chains, hotel groups, or large domestic conglomerates. These protracted settlement schedules frequently forced foreign business owners to finance working capital through personal funds or commercial borrowing.
The fixed settlement caps provide predictability for monthly cash flow planning. Expat company directors can now structure their billing schedules around reliable 30-day or 45-day cycles, reducing the risk of bad debt and lowering reliance on overdraft facilities to meet regular payroll or supplier obligations.
Scrutiny of Digital Platform Fees
Alongside the credit rules, the Commerce Ministry is reviewing ancillary operating overheads affecting small businesses.
Commerce Minister Suphajee Suthumpun led an inter-agency meeting on 21 October 2026 to address high platform fees and commission structures. The inquiry focuses on digital intermediaries, delivery applications, and online service marketplaces. Many British entrepreneurs in Thailand rely heavily on digital platforms to market services, take customer bookings, or distribute retail products.
New guidelines are currently being drafted to prevent platform operators from levying disproportionate fees. The ministry plans to introduce competition standards designed specifically for the digital economy, ensuring that commission rates do not erode vendor profitability.
Economic Scale and Liquidity
The regulatory reform is projected to release substantial liquidity across the wider Thai economy.
More than 3 million small and medium-sized enterprises are registered nationwide. Supree Thongpetch, president of the Thai Small and Medium Enterprises Council, noted that long payment delays have historically hindered the day-to-day operations of independent firms. Council data indicates that reducing average settlement periods from 60 to 45 days will release roughly 250 billion baht back into commercial circulation. Compressing terms from 90 to 45 days could unlock up to 750 billion baht in available working capital.
Trade Competition Commission chairman Sudharma Yoonaidharma confirmed that the regulator will enforce the rules strictly across all provinces. The commission will supervise compliance to ensure large enterprises adhere to the published notification, giving independent operators and foreign-owned small businesses equal protection under Thai commercial law.
Source: nationthailand.com
Reviewed by the Thailand Guide Editorial Team • Last reviewed: 25 October 2026
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