Stricter payment terms for big companies: be late and it will cost you
Big companies which make their medium and small business suppliers wait for their money will have to pay damages and legal costs, if new legislation mooted by the government becomes law.
The current legal term for payment is 60 days but this is to be brought back to 30 days, junior economic affairs minister Mona Keijzer and justice minister Sander Dekker have decided.
The change in the law had been pending since last year when big firms were told to regulate halving the payment term themselves. That has not happened, the ministers said. In 2019 the average term rose from 41 days in the first quarter to 41.4 days in the second quarter.
‘Bills are being paid later instead of sooner and that is not what we want to see,’ Keijzer said. ‘Many freelancers and small companies get into trouble if they have to wait for their money a long time, particularly now with coronavirus.’
The change, which is expected to become law before the end of the year, will give suppliers the right to bill for damages, collection costs and legal costs if big companies if companies exceed the 30 day term.
This strengthens their legal position, small company lobby group MKB Nederland said. ‘We have fought for this long and hard and we are very pleased,’ MKB chair Jacco Vonhof told broadcaster NOS.
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