Pronto Pago, initiative to pay bills to MSMEs in 45 days passes its first filter, will be voted on in the Chamber of Deputies

The initiative of I’ll pay soonwhich shortens the term for payment of invoices to micro, small and medium-sized enterprises (MSMEs) from 120 to 45 days, was approved by the Commission for Economy, Commerce and Competitiveness of the Chamber of Deputies.

The opinion was presented at the end of 2022 by the Ministry of Economy and contemplates a reform to article 83 Bis of the Commercial Code to reduce the period thatcurrently it is up to 120 days, which helps increase the productivity of small businesses.

Data from the Radiography of Entrepreneurship in Mexico 2021 indicate that 39% of SMEs have arrears in the payment of invoices, meanwhile, only 18% of the small businesses that have not been paid within the agreed term take the case to legal instances, of these, only 8% recover the total of their invoices and 84% dedicate up to two years and invest up to 100,000 pesos in the legal process.

Juana Ramírez, president of the Asem said that the approval of the initiative is “a step forward in favor of entrepreneurship” and although it’s not 30 days proposed by the association considered that what was approved “helps us a lot to generate a better cash flow for companies, continue generating jobs and move the economy”.

Background

In 2018, the Asem presented the proposal for the Law of payment in 30 days, after 32 months of analysis with entrepreneurs from all states and which gave rise to the “Emprendecálogo” a group of ten needs of the ecosystem to generate more favorable conditions for the development of entrepreneurship in the country and the environment for doing business.

The initiative contemplated that private and government companies they will pay the bill one month after being issued, otherwise a fine or interest would be applied to the companies that must be delivered to the Tax Administration Service (SAT).

For 2021, the initiative, named Timely Payment, was analyzed by the Ministry of Economy and between 30 and 40 days were contemplated for prompt payment.

In September, the Secretary of the Economy, Tatiana Clouthier, made a commitment to entrepreneurs, during the Entrepreneurs Summit 2021, to promote the initiative.

A year later, on October 12, it was approved in the Chamber of Deputies; in the Commission of Economy, Commerce and Competitiveness. Now the initiative will go to plenary of the Chamber of Deputies and if approved, it will be the turn of the Senate.

What is the initiative about?

The document indicates that commercial contracts involving a supplier that is a micro, small or medium-sized company and as a counterpart to a large company, “the maximum payment term will be forty-five calendar dayscounted from the delivery of the good or the provision of the service.

Exceptions are also contemplated, since those involved may agree on a longer term, “provided that this is justified by mutual benefit or the nature of the contract, and does not constitute an abusive practice. In no case, the maximum payment term may exceed 60 calendar days.

It is foreseen “that in the event that the contracts establish procedures for the acceptance or verification of the goods or services, the term for this may not exceed 15 calendar days, except in exceptional cases where the nature of the good or service so requires” .