When a payee wants to get cash immediately for a draft he can sell it to another party, but interest must be paid. This is called:

Name: When a payee wants to get cash immediately for a draft he can sell it to another party, but interest must be paid. This is called:
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Question

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Discounting a draft involves selling it to another party for immediate cash, but at a discount or with interest added. This allows the payee to receive funds quickly, but at a cost.

When a Payee Wants to Get Cash Immediately for a Draft