Offering discounts for early payment is a strategy to achieve what?

Offering discounts for early payment is primarily a strategy aimed at improving the Debtors Turnover. This measures how quickly a business collects cash from its credit sales, which is an important aspect of managing cash flow. When a business incentivizes customers to pay earlier by providing a discount, it encourages prompt payments, reducing the average collection period.

This approach not only accelerates cash inflow but also decreases the risk of bad debts, as customers are less likely to default if they are encouraged to pay quickly. Enhanced cash flow can be better utilized for other operational needs or investments, boosting the overall financial health of the business. By improving the Debtors Turnover ratio, the business showcases effective credit management practices and can maintain a more stable cash position.

The other options focus on differing aspects of business finance but do not align as closely with the concept of early payment discounts aimed specifically at enhancing debtor management and cash collection efficiency.