Publication

Late Payment: International Comparative Legal & Regulatory Framework

Published: 2 July 2026

ERC SOTA Review No 70

Associated Themes

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  Business Growth
• 
  Entrepreneurship

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Late payment is fundamentally a structural power problem where large buyers systematically extract interest-free working capital from their supply chains. While statutory rights exist in most developed economies, they are frequently nullified by the asymmetric bargaining power of large buyers who force smaller suppliers to waive these rights in favour of “alternative remedies.” This imbalance creates a phenomenon of “demand suppression,” where a majority of SMEs with valid interest claims choose not to pursue them to avoid damaging critical commercial relationships.

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