Bill of exchange / Draft
Posted by Ripon Abu Hasnat on Friday, June 13, 2014 | 0 comments
A bill of
exchange, or draft, is a negotiable instrument that is both drawn upby and
made payable to the exporter/seller. Although written by the seller, it
has the equivalent effect of a check written by the buyer. It is generally a
three-party instrument consisting of a:
1. Drawer – the party issuing the bill of exchange; usually the
exporter/seller.
2. Drawee – the recipient of the bill of exchange for payment or
acceptance; usually the buyer.
3. Payee –
the party to whom the bill is payable; usually the seller’s bank.
Bills of
exchange are either payable at sight (sight
drafts) where the bank pays the full amount upon presentation, or payable
at some future date (time or term drafts).
You can subscribe by e-mail to receive news updates and breaking stories.
0 comments for "Bill of exchange / Draft "
Leave a reply