If a firm's customers is stretching its accounts payable,this may be a nuisance,but it does not represent a real financial cost to the firm as long as the customer periodically pays off its entire balance.

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Stretching accounts payable can represent a real financial cost to the firm if the firm incurs additional costs such as interest expenses or loses early payment discounts. It can also affect the firm's cash flow and ability to pay its own bills and expenses in a timely manner.

If a Firm's Customers Is Stretching Its Accounts Payable,this May