Tightening the credit policy will most likely:

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Tightening the credit policy typically means a company is being more selective about to whom it extends credit and may also mean it is requiring faster repayment. This would likely lead to a shorter Average Collection Period, as customers are required to pay their debts more quickly. Additionally, with stricter credit terms, fewer customers may be extended credit, leading to a decrease in the levels of accounts receivable.

Tightening the Credit Policy Will Most Likely