A major concern for firms selling on credit is

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Firms selling on credit have to wait for their customers to pay their bills, which ties up a significant amount of assets in accounts receivable. While some credit customers do pay their bills, there is always a risk of non-payment or delayed payment. This can result in cash flow problems for the firm and can lead to an increase in the debt ratio if it has to borrow money to cover its expenses. Factoring can be a source of financing for firms, but the inability to utilize it is not a major concern for firms selling on credit.

A Major Concern for Firms Selling on Credit Is