UAE’s 30-Day Late-Payment Law: Turn Risk Into Cash
Since February 2023, Federal Decree-Law (3) says UAE buyers must pay business-to-business invoices within 30 days unless the contract states otherwise. For SMEs, that shrinks the “I’ll pay you next month” excuse.
What Founders Should Do
- Rewrite payment terms
Put “net-30 (UAE Decree-Law 3/2023)” on every invoice so clients see the legal hook. - Add a carrot
Offer 1 % discount for payment in ten days—cheaper than borrowing. - Add a stick
Include late-fee or interest clause (allowed under the law) but be ready to waive if the client pays quickly after a reminder. - Factor slow payers
Use invoice finance on Day 1 for customers that still drag past 30 days; cost is often less than chasing them.
| Client Type | Typical DSO* | Best Tool |
|---|---|---|
| Multinational | 45–60 d | Invoice finance |
| Government entity | 30–45 d | Early-payment discount |
| Local SME | 15–30 d | Direct follow-up |
*Days-Sales-Outstanding.
Keywords: late-payment law UAE, invoice terms, small-claims interest, cash-flow protection, B2B payment UAE
Hashtags: #KlubAI #LatePaymentLaw #CashProtection #InvoiceFinance #UAESME
Marketing blog for education; confirm legal details with your adviser.
