2023.10.10

EU wants to tighten payment times for companies

For a long time, subcontractors and smaller companies have complained about how they have to wait a long time to get paid, and thus act as a bank for larger companies. Now the European Commission wants to tighten the tone on payment times. The European Commission has presented a proposal for a new regulation that proposes, among other things, a maximum limit of 30 days for invoices, and clearer requirements for interest in case of delays.

Svensk Elektronik welcomes the proposal.

”"It is unreasonable that the payment terms have so far been of one-sided advantage to certain larger players at the expense of smaller players. A company's cash flow is a parameter that directly affects the company's opportunities to grow and achieve success. A performance must always be followed by a counterperformance within a reasonable time, i.e. that everyone in the production chain can be paid for their efforts. The fact that the EU Commission also includes clearer requirements for interest in the event of late payment shows that it sees the big picture and takes companies' concerns with irregular or very long payment times seriously, and that is a good thing," emphasizes Elisabet Österlund, Chairman of Svensk Elektronik.