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

1. Rewrite payment terms
   Put “net-30 (UAE Decree-Law 3/2023)” on every invoice so clients see the legal hook.
2. Add a carrot
   Offer 1 % discount for payment in ten days—cheaper than borrowing.
3. 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.
4. 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.