Bill of Exchange

A signed promise to pay by a receiver of goods or services and kept by the supplier.

May be sold at a discount. A means of trade payment used by companies to finance themselves. They pay a fee to an accepting house which accepts (gurantees) the bill. They they present the bill to a discount house which pays them money in advanced on the strength of the bill, subject to a discount on its face value. Also known as a bankers acceptance and commercial bill.

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