A means of financing international trade transactions through credit extended by a commercial or merchant bank to a foreign importer deemed creditworthy.
The practice of accepting or paying a bill of exchange after it has been dishonoured, by an individual aiming to preserve the honour of the drawer or an endorser.
An accommodation bill is a type of bill of exchange signed by an individual who acts as a guarantor, ensuring the bill’s payment in case the acceptor fails to pay at maturity. These bills are often called windbills or windmills.
Words written on a bill of exchange to indicate that the drawee has been informed that the bill is being drawn on him or her.
The term 'after date' refers to the words used in a bill of exchange to indicate that the period of the bill should commence from the date inserted on the bill. This affects the calculation of the payable date.
The term 'After Sight' refers to the specific wording used in a bill of exchange that indicates the time period for payment will start from the date the drawee accepts, or 'sees', the bill.
The term 'at sight' is commonly used on a bill of exchange to indicate that payment is due upon presentation. It is an immediate payment term contrary to 'after date' or 'after sight' terms.
A guarantee of payment by a third party, often a bank, on a bill of exchange or promissory note, ensuring the instrument is honored.
The banker's discount is the discount calculated by a bank when purchasing a bill of exchange before its maturity.
A bearer instrument is a financial instrument that is payable to the holder or bearer, regardless of that person's identity. As a bearer check or bill of exchange does not require endorsement, it is considered a high-risk form of transfer.
A 'bill' refers to both a bill of exchange and a sales invoice. In accounting, it represents a demand for payment for goods or services provided.
A bill of exchange is an unconditional written order directed from one person (the drawer) to another (the drawee), mandating the drawee to pay a specified sum of money either on demand or at a future date. This financial instrument is both transferable and negotiable, enabling enforceable monetary transactions.
A blank bill refers to a bill of exchange where the name of the payee is left blank. It allows the holder of the bill to fill in the name of the payee at a later date or upon presenting the bill for payment.
Debt is an amount of money borrowed by one party from another, which is often incurred by businesses and individuals to finance specific activities or projects.
A debt instrument is a document used to raise non-equity finance, typically consisting of a promissory note, bill of exchange, or any other legally binding bond.
In the realm of accounting, a 'discount' refers to a variety of reductions applied to amounts due or outstanding, impacting both operational transactions and financial statements.
Discounting refers to the application of discount factors to cash flow projections in discounted cash flow analysis and the process of selling a bill of exchange before its maturity at a discounted price.
A comprehensive overview of the accounting term 'dishonour,' referring to the failure to pay a cheque, accept or pay a bill of exchange, or honour any other financial obligation.
In accounting, a draft can refer to several different financial instruments or preliminary versions of documents, each serving specific purposes in financial transactions or documentation processes.
Understanding the role of the drawee in financial transactions, including bill of exchange, cheques, and bank drafts.
The drawer refers to a person or entity who issues a financial instrument such as a bill of exchange or a cheque, instructing the drawee to pay a specified sum of money either immediately or at a later date.
Forfaiting is a form of debt discounting for exporters in which a forfaiter accepts at a discount, and without recourse, a promissory note, bill of exchange, letter of credit, etc., received from a foreign buyer by an exporter. This enables exporters to receive payment without risk at the cost of a discount.
The term 'Not Negotiable' is used in the context of bills of exchange, indicating that the instrument is no longer a negotiable instrument. This term provides a safeguard against passing on a defective title.
Understanding the concept of 'Payable to Bearer' in the realm of bills of exchange and how it differs from 'Payable to Order'. This term is essential for those involved in financial transactions using negotiable instruments.
A term describing a bill of exchange in which the payee is named and on which there are no restrictions or endorsements, thus allowing it to be paid to the endorsee.
A payee is an individual or entity to whom a debt is payable or to whose order a bill, note, or check is made payable, thus playing a crucial role in financial transactions.
Qualified acceptance refers to an acceptance of a bill of exchange that modifies the original terms of the bill. It provides protections for the holder, drawer, and endorsers of the bill.
Rebates can serve as powerful tools for boosting sales, incentivizing customer loyalty, and offering economic relief through various forms of refunds, making them an essential concept in both business and personal finance.
A sight draft, also known as a documentary draft, is a type of financial instrument or bill of exchange that is payable upon presentation, typically used in international trade to facilitate the payment for goods and services.
Tenor refers to the duration of time that must elapse before a financial instrument such as a bill of exchange or promissory note becomes due for payment.
A phrase indicating that the holder of a bill of exchange cannot seek payment from the original payee if the bill is not honored.
