February 24, 2021

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Late payment notification point for large companies

Late payment notification point for large companies

Last summer, State Secretary Keijzer (Economy and Climate) announced that she would like to investigate whether state supervision is necessary in order to comply with payment terms between large and medium-sized companies. Numbers show that bills are paid later instead of earlier.

At the request of State Secretary Keijzer, ACM collects reports on large companies that exceed the legal or agreed payment deadline for a period of one year. The Ministry of Economic Affairs and Climate Policy will evaluate the results after one year to determine whether state oversight is in place.

When SMEs are paid on time, they have more financial flexibility and a better view of the company’s cash. It is often difficult for smaller entrepreneurs to enforce compliance with the agreed payment terms themselves.

The maximum legal payment period from large companies to SMEs is currently 60 days. The ministries for EZK and Justice and Security (J&V) are working on a change in the law to shorten this to 30 days.