The UK is advancing a Commercial Payments Bill that would cap payment terms at 60 days and add non-waivable interest penalties for late invoices.
The measure targets large companies that delay paying small suppliers, after voluntary codes and court-based remedies failed to stop businesses from using them as interest-free lenders.
A new Enterprise Research Centre comparison of 20 jurisdictions said the UK framework would go further than any current regime in the G7 or EU, backed by stronger enforcement powers for the Small Business Commissioner.
The bill draws on models cited in Japan and the Netherlands, where mandatory caps and proactive enforcement cut late payments sharply, reinforcing the UK's push for tougher statutory rules.