Cash sales

Cash sales are sales in which the payment obligation of the buyer is settled at once. Cash sales are considered to include the following forms of payment:

  • Bills
  • Coins
  • Checks
  • Credit card
  • Money order

A cash sale eliminates the need for the seller to extend credit to a customer. Therefore, there is no risk of a bad debt.

The term can also refer to the sale of a security that requires immediate delivery.