The European Commission decided to take action to combat the problem of late payments in Europe, and in September 2023 presented an unexpected proposal for a new Regulation, pending approval by the EU Council and EU Parliament. Hopefully, it will not pass. Joao Costa Pereira, Editorial Board Member of trfnews and Head of Trade Finance at Ouribank, Brazil, clarifies further.
I truly believe they meant well, and that they had good intentions. Indeed, late payments negatively affect SMEs, being estimated as the cause of 25 per cent of bankruptcies.