Loosening the standards for granting credit to customers will tend to decrease the accounts receivable period.

Standards

Established norms or requirements that are used as a basis for comparison or compliance.

Credit

A form of financial arrangement where a borrower receives something of value now and agrees to repay the lender at a later date, typically with interest.

Accounts Receivable Period

Also known as the average collection period, it refers to the average number of days it takes a company to collect payments from its credit sales.