Effectiveness of Strategies in Accounts Receivable Management

A large manufacturing company, XYZ Corp, maintains a relatively high level of accounts receivable compared to its peers in the industry. XYZ Corp has a credit policy that offers 30-day terms, but analysis reveals that the average collection period is 45 days. As part of its strategic review, management is considering implementing tighter credit controls to reduce the amount of outstanding accounts receivable.

If XYZ Corp decides to reduce its average collection period to a level more in line with its industry peers, which of the following actions would be most effective in achieving this goal?