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October 6, 2026

Thailand Issues New Credit-Term Rules for Large Purchasers from SMEs

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On October 2, 2026, the Trade Competition Commission of Thailand (TCCT) issued a new notification on fair trade practices concerning credit terms where large businesses, including large wholesale and retail businesses, purchase goods or services from small and medium-sized enterprises (SMEs). The notification will take effect on November 2, 2026.

The new notification follows continued complaints from SMEs in Thailand about large businesses’ noncompliance with existing credit-term rules.

Businesses and Transactions Covered

The notification applies where an SME supplies goods or services on credit to a business with revenue from operations in Thailand of at least THB 500 million in the preceding financial year. The notification divides such purchasing businesses into “large businesses” and “large wholesale and retail businesses.”

Wholesale and retail businesses include wholesalers and retailers of consumer goods using modern distribution systems and technologies, whether operating with or without branches or under a franchise arrangement. Examples include hypermarkets, cash-and-carry businesses, supermarkets, specialty stores, department stores, and convenience stores.

In determining whether the THB 500 million threshold is met, the revenue of businesses having a relationship in terms of policies or control, establishing a single economic entity (SEE), must be combined.

A supplier qualifies as an SME only if it satisfies both employee and annual revenue criteria, depending on the type of SME:

  • Manufacturing businesses: No more than 200 employees and annual revenue not exceeding THB 500 million.
  • Service, wholesale, or retail businesses: No more than 100 employees and annual revenue not exceeding THB 300 million.

The notification covers written credit arrangements between SME sellers and large purchasers under which payment for goods or services is made at a later agreed date, including consignment and other forms of transaction.

Key Credit-Term Requirements

The maximum credit terms remain the same, but unlike the previous credit-term guidelines, which required the SME to prove its SME status, the new notification requires large businesses and large wholesale or retail businesses to inform SME suppliers of their right to receive payment within the applicable credit term and clearly explain the payment procedures.

These maximum terms are:

  • 45 days for general trade, manufacturing, and services; and
  • 30 days for trade, manufacturing, and services involving agricultural products or primarily processed agricultural products with uncomplicated production processes.

If the parties have already agreed to a shorter credit term, that shorter period continues to apply. A different credit term may be agreed upon if supported by reasonable business, marketing, or economic grounds and consistent with the relevant contract.

The credit term starts when the SME has delivered the goods or provided the services in the agreed quantity, type, quality, and standard, and has submitted complete and accurate documents. For consignment arrangements, the credit term starts when the goods have been sold in the agreed quantity or proportion in accordance with normal trade practice.

The notification also prohibits these purchasers from imposing uniform credit-term conditions on all SMEs through standard form contracts where those conditions are unfair. This prohibition concerns only unfair credit-term conditions and does not prohibit the use of standard form contracts in general.

Unfair Conduct

Conduct that may constitute an unfair trade practice includes:

  • Delaying payment beyond the applicable credit term without reasonable justification;
  • Changing a credit term or other contractual condition without reasonable justification or without giving at least 60 days’ prior notice to the SME; and
  • Other unfair conduct, including imposing special credit-term conditions that create an unnecessary burden on the contracting party.

Business Outlook

Businesses purchasing goods or services on credit from SMEs should assess whether they meet the THB 500 million revenue threshold, taking into account the revenue of all entities in their group—that is, all entities forming an SEE—in Thailand.

Before the notification takes effect on November 2, 2026, businesses within the scope should review their credit terms, payment communications, and standard form contracts. They should also verify the SME status of their suppliers and classify them into the appropriate group in order to adjust credit terms and payment conditions accordingly.

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