What do you think of Each proposed measure carries its own set of risks and costs. Tightening credit policies might safeguard the company against defaults but could also restrict sales growth by excluding potential customers with marginal credit profiles. Discounts for early payment could erode profit margins, though they may be justified by the benefit of improved liquidity. Aggressive collection practices might secure higher collection rates but at the risk of straining customer relationships and incurring additional operational costs. Factoring, while offering an immediate cash flow solution, comes with a cost that directly affects profitability and might raise concerns about the company's financial stability among stakeholders.

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