With promissory notes being discontinued, the JFTC and SMEA request appropriate payment (payment within 60 days)Paper "pay later" promises are going away. Pay on time!
On September 2, 2026 (Reiwa 8), the Japan Fair Trade Commission, together with the Small and Medium Enterprise Agency, requested appropriate payment across the entire supply chain in light of the discontinuation of promissory notes. Even for transactions outside the scope of the Fair Subcontract Transactions Act (取適法), it asks businesses to shorten payment terms to within 60 days and to increase cash payments.The paper promise used between businesses to say "I'll pay later" (a promissory note) will soon stop being usable. The government asks businesses to pay properly within 60 days of receiving the goods.
- January 1, 2026 (Reiwa 8)Fair Subcontract Transactions Act takes effect. Delivering bills for orders from this date is prohibited
- September 2, 2026 (Reiwa 8)JFTC and SMEA request appropriate payment
- September 30, 2026 (Reiwa 8)Final date for issuing bills and checks at many financial institutions
- March 31, 2027 (Reiwa 9)Exchange of bills and checks at electronic clearing houses ends
- April 1, 2027 (Reiwa 9)Payment notice takes effect. Also applies to transactions outside the Act
- 1. DeliverDo the work and deliver the goods
- 2. ReceiptThe other side receives the goods
- 3. Within 60 daysThe payment is made during this time
- 4. Full amount arrivesYou get the full amount with no fees taken off