Accounting for IGCSE & O level - Advanced Principles (Section 8 - No. 21)
How can a business reduce its trade receivables collection period?
Offering more generous cash discounts for early payments
Increasing credit terms to customers
Delaying invoices to customers.
Allowing customers longer to pay.
Paskaidrojums
Offering cash discounts encourages customers to pay earlier, thereby reducing the collection period.