Small businesses to be consulted on changes to prevent late payments

Published: 26 February 2020

We’re asking small businesses what they think of two proposals which aim to improve business-to-business payment practices in New Zealand:

  • A maximum payment term of 20 days to ensure small businesses are reimbursed for their services more quickly.
  • The right for small businesses to charge interest on overdue invoices and debt recovery fees for late payments.

Set out in a discussion paper, released today by the Minister for Small Business Stuart Nash, the proposals are designed to boost business-to-business cash flow, and give small businesses more power to address and recover late payments.

Submissions are open until Tuesday, 14 April.

Read the Minister’s statement(external link).

Read the discussion document and make a submission