Sellers generally prefer to receive notes receivable rather than accounts receivable when the credit period is long and the receivable is for a large amount.

Notes receivable are a formal written promise to pay a specific amount of money at a specific date in the future, while accounts receivable are simply invoices for goods or services sold on credit. Sellers prefer notes receivable in these situations because they provide a more formal and legally binding obligation for the buyer to pay, reducing the risk of non-payment. Additionally, notes receivable can often be sold or used as collateral to obtain financing or improve cash flow.