The maximum statutory payment period from large companies to small and medium-sized enterprises (SMEs) will be shortened from 60 to 30 days. This is contained in a bill that State Secretary Mona Keijzer (Economic Affairs and Climate) sent to the House of Representatives in March.
Late payments negatively affect the cash position and thus the viability of SMEs. In addition, SMEs generally have smaller reserves and are therefore more dependent on continuous cash flow. This was already the case before the corona crisis. According to Keijzer, entrepreneurs get into a jam when they have to wait a long time for their money.
The cabinet therefore wants to halve the current permitted payment period and make it equal to that of the government, in order to better protect SMEs. 'Reducing the payment period will give SMEs more financial breathing space, better visibility into the company's coffers and thus a greater chance of getting through the current economic crisis,' Keijzer said.
Read the full message on the central government website
