Core Insights - The article discusses the challenges faced by small and medium-sized enterprises (SMEs) in the automotive supply chain, particularly regarding payment terms and cash flow management [1][3][12] - It highlights the introduction of a "60-day payment term" by major automotive companies, but notes that not all suppliers benefit equally, with some facing much longer payment cycles [3][4] - The concept of "invisible payment terms" is introduced, where delays in payment confirmation create additional cash flow challenges for SMEs [3][5][9] Payment Terms and Challenges - The "60-day payment term" is primarily applicable to material suppliers, while equipment and infrastructure suppliers often experience longer payment cycles, sometimes exceeding one year [3][5] - SMEs are often pressured to accept unfavorable payment terms due to the need to maintain relationships with larger enterprises, which can lead to cash flow issues [9][11] - The article emphasizes that the real issue for SMEs is not just the nominal payment terms but also the hidden delays in payment confirmation, which can extend the time before they receive payment [4][5][9] Regulatory Environment - Recent regulations, such as the "Payment Protection for SMEs" law, aim to ensure timely payments from core enterprises to their suppliers, but implementation details remain vague [12][13] - The article suggests that existing regulations in developed countries impose penalties on late payments, which could serve as a model for improving the situation in China [13] Financial Implications - SMEs struggle to secure financing due to the lack of formal payment confirmations, which complicates their ability to leverage accounts receivable for loans [14][15] - The reliance on core enterprises' credit for supply chain financing poses risks, and there are calls for alternative financing models that do not depend solely on these large companies [15][16] Recommendations for Improvement - The article advocates for clearer regulations regarding penalties for delayed payments and suggests that core enterprises should be required to disclose accounts receivable information to enhance transparency [17] - It emphasizes the need for a cultural shift in business practices, encouraging core enterprises to optimize payment terms to improve overall supply chain efficiency [17]