Nation Thailand
Thailand targets SME cash flow with credit and payment reforms
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For a small supplier, a delayed payment is more than an accounting inconvenience. It can mean borrowing to pay workers, postponing an order for raw materials or putting off an investment that might help the business compete.
Key facts
- That pressure is spreading across Thailand’s small and medium-sized enterprise (SME) sector, which employs about 13.6 million people — roughly 70% of the workforce — and contributes around 35% of gross domestic product (GDP).
- Warawan estimated that unpaid funds tied up in the system could total roughly THB100-200 billion.
- For modern-trade operators, the draft defines a large business as one with revenue above THB500 million, while suppliers must meet the relevant SME criteria.
- BOT data show that SME loan rejection rates may be around 60-70%, with some groups facing much higher rates
- Rejection rates reach 78% for new SMEs with no financial track record and 86% for businesses with a history of non-performing loans
- In some cases, the actual rate may be close to 90%.
Summary
That pressure is spreading across Thailand’s small and medium-sized enterprise (SME) sector, which employs about 13.6 million people — roughly 70% of the workforce — and contributes around 35% of gross domestic product (GDP).
Weak purchasing power, rising costs and tighter liquidity are making it harder for SMEs to sell, operate and secure the working capital they need. Regulators are now turning their attention to two problems at the heart of the squeeze: how quickly large companies pay smaller suppliers and how easily SMEs can obtain loans.