Time-sales financing is a way for a seller to generate cash from long-term installment accounts receivable.

Question

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Time-sales financing involves selling the long-term installment accounts receivable to a financial institution or another party in exchange for immediate cash. This allows the seller to receive cash upfront and transfer the responsibility of collecting payments from the buyer to the financial institution or party that purchased the receivables.

Time-Sales Financing Is a Way for a Seller to Generate