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Bill

HB 1506

Contracts; payment terms for business to business transactions; provide

2025-2026 Regular Session Introduced by Solomon Adesanya and 3 co-sponsors

Georgia bill requiring faster payment terms for B2B transactions to improve cash flow for small businesses and reduce payment delays from larger corporations.

House Second Readers
#contracts #property
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WeVote Research Nonpartisan
Bill Summary · HB 1506

Legislative bill overview

HB 1506 establishes payment term requirements for business-to-business (B2B) transactions in Georgia, likely setting standards for how quickly larger businesses must pay smaller vendors and contractors. The bill appears designed to improve cash flow for small and medium-sized businesses that often experience payment delays from larger corporate clients. Specific payment timeframes and exemptions would be defined within the bill's provisions.

Why is this important

Delayed B2B payments are a significant problem for small businesses, which often lack the cash reserves to absorb 60-90 day payment cycles while covering their own operational costs. Standardizing payment terms can reduce business failures, improve competitiveness for smaller firms, and stimulate economic activity. This issue disproportionately affects minority-owned and women-owned businesses that typically have less access to credit to bridge payment gaps.

Potential points of contention

  • Compliance burden and costs: Larger companies may argue that mandated payment terms create administrative burdens and increased costs that could be passed to consumers or result in fewer B2B contracts
  • Scope and exemptions: Disputes likely over which businesses/transaction types are covered, whether government contracts are included, and what industries might be exempt
  • Competitive impacts: Concerns that rigid payment requirements could disadvantage Georgia businesses compared to out-of-state competitors without similar restrictions

Compiled from official sources — confirm details with the bill’s official record.

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