In some distribution arrangements, the vendor retains legal title to the goods until ultimate sale to a third-party customer. 17) Selling receivables is called factoring.Explanation: Factoring involves selling accounts receivable to a third. Selling receivables is called Factoring and is a form of accounts receivable financing. Selling receivables is called what? Please choose the answer from below. a. Accounts receivable factoring enables you to sell your receivables at a discounted rate to a third party, known as the 'factor. Selling receivables is called a. Sales revenue Ob.sold receivables c. The accounts receivable turnover ratio reveals how well a company collects receivables from customers.