SME Relief Package: Revision of Late Payment Directive should better reflect business reality
12 September 2023 - Commenting on the European Commission’s proposed SME Relief Package, BusinessEurope Director General Markus J. Beyrer said: "We welcome efforts to create an SME-proofed regulatory regime through more effective use of tools such as the SME Test and the appointment of an EU SME Envoy. Reporting reductions for companies are also a necessary step, as there is an urgent need to more broadly simplify and significantly reduce regulatory burden for companies.
However, we have concerns around the revision proposal of the Late Payment Directive. A culture of prompt payment is key and shorter payment terms in B2B transactions could help increase SMEs’ cash flow. Nevertheless, this should only be considered if the freedom of contract is maintained. This is crucial in allowing the flexibility to capture business-to-business specific circumstances."