If you run a small business in Thailand that sells to a big retailer, wholesaler or corporate buyer, the rules on how long you can be made to wait for payment change on Monday 2 November 2026. A notification from the Trade Competition Commission of Thailand (TCCT) on fair credit terms between large businesses and small and medium-sized enterprises (SMEs) was published in the Royal Gazette on 2 October and takes effect 30 days later, on 2 November. The government spokesperson's office set out the details on 6 October, and the Commerce Ministry has promoted the change as a way to ease cash-flow pressure on smaller firms.
The two deadlines
Under the notification, the credit term, meaning the agreed time a buyer has to pay for goods or services, should be no more than 30 days for agricultural goods and agricultural products that go through only simple, primary processing. For general trade, manufacturing and services, the limit is 45 days.
If a supplier and buyer have already agreed a shorter period, the shorter period stays. The government stressed that the new limits are not a reason to stretch existing payment dates. A different period can still be set where there is a reasonable business, marketing or economic justification under the contract, and each case is judged on its facts.
When the clock starts
According to the government's explanation, the period normally starts when goods have been delivered or a service provided in the agreed quantity, type and quality, together with correct and complete documents. For consignment sales, where goods sit on a shop's shelves until they sell, the count starts once the agreed quantity or share of the goods has been sold in line with normal trade practice, not on the day the stock is placed in the shop.
The government's spokesperson said the key point for small firms is not just remembering 30 or 45 days, but keeping clear records of delivery dates, proof that goods were received, consignment terms and billing documents, because these decide when the payment period begins.
Who it covers
The rules apply to transactions between SMEs and large business operators, or large wholesale and retail operators, as defined in the notification. The Nation reports that large buyers are those with revenue from operations in Thailand of at least 500 million baht in the previous accounting year, including groups of linked companies whose combined revenue reaches that level. Large retail operators include hypermarkets, cash-and-carry wholesalers, supermarkets, speciality stores, department stores and convenience stores, including franchise operators.
On the supplier side, The Nation reports that a manufacturing SME has no more than 200 employees and annual revenue of no more than 500 million baht, while a service, wholesale or retail SME has no more than 100 employees and revenue of no more than 300 million baht. The government said the notification does not automatically cover every sale between every buyer and seller, and that a payment made after more than 45 days is not automatically an offence.
What counts as unfair
Large buyers covered by the notification must tell SME suppliers about their right to be paid within the set period and explain their normal payment steps clearly. The notification lists conduct that may be treated as an unfair trade practice, including delaying payment beyond the credit term without good reason, changing the credit term or contract conditions without good reason or without at least 60 days' notice, and imposing the same standard-form credit terms on all SME partners in an unfair way.
Where the facts are mainly within a large buyer's knowledge, the buyer has to present them to the commission, which The Nation reports is meant to ease the burden of proof on smaller firms. The Nation reports that a breach can bring an administrative fine of up to 10% of revenue in the year of the offence.
Why it matters
The Nation reports that the measure is aimed at more than 3 million SMEs, and that the shorter payment periods are estimated to release up to 750 billion baht in working capital back to smaller businesses, reducing their need to borrow to cover running costs. The TCCT says SMEs kept reporting long payment waits even though earlier credit-term guidelines had been in place for more than four years.
This article is general information, not legal advice. The government has urged both sides to check their contracts, delivery steps, billing documents and payment conditions now. If you have a dispute or are unsure whether your business is covered, speak to a qualified Thai lawyer or contact the TCCT.