President Piñera enacted 30-day Payment Law: “This brings justice for our SMEs
The law establishes a firm payment deadline for companies and enables the application of interest for every day that payment is delayed. It sets the same payment terms for the public and private sectors.
This Thursday, President Piñera enacted the 30-day Payment Law, ending 15 years of waiting for a solution to the invoice payment problems SMEs face.
“This law brings justice for our SMEs. it is going to prevent large companies from retaining the working capital that belongs to micro-, small- and medium--sized businesses in Chile,” said the President at an event attended by Economy Minister José Ramón Valente, other senior officials, members of Congress and entrepreneurs.
There are more than a million formal companies in Chile and micro-, small- and medium-sized enterprises represent 98.7% of them. Fifty percent of the people employed in Chile work for SMEs. The new law establishes a firm payment deadline and enables the application of interest for every day that payment is delayed plus commission on overdue invoices.
The law sets the same payment terms for the public and private sectors. It also requires electronic dispatch notes to establish when the merchandise was delivered and, thus, the date from which the 30-day term is calculated. “SMEs are the driving force in Chile. They make up the vast majority of companies and a very large percentage of jobs.
They are also constantly innovating and creating wealth,” noted the President. The Government has made it a priority to safeguard growth, job creation and increased investment in Chile.