Abstract: This invention relates to a method of extended term financing using financial instruments known as time drafts. A seller sells goods and services to a buyer pursuant to a purchase agreement that includes extended term financing of the purchase price. The seller also prepares and sends to buyer a time draft specifying a specific payment amount at a specific future due date. The seller encodes buyer's bank account information on the time draft. The buyer signs the time draft and returns it to seller. A finance company buys the time draft from seller and pays the seller a single payment equal to the full purchase price minus a service fee. On the due date, the time draft becomes the equivalent of a regular check, and the buyer pays the time draft through normal banking channels.