Payee

 It's the person to whom the payment has to be created. it may be the drawer himself if he has not discounted the bill with any third party.

Drawee or Acceptor

 It's the person on whom the bill of exchange is drawn and he has to make the payment to the supplier of goods.

Drawer

It's the person who is that the maker of the bill of exchange. it's the person who has sold-out the goods and for receiving the payment from the debtor he attracts a bill of exchange.

Different Parties of Bill of Exchange

Drawer 
It's the person who is that the maker of the bill of exchange. it's the person who has sold-out the goods and for receiving the payment from the debtor he attracts a bill of exchange.

Drawee or Acceptor
 It's the person on whom the bill of exchange is drawn and he has to make the payment to the supplier of goods.

Payee
It's the person to whom the payment has to be created. it may be the drawer himself if he has not discounted the bill with any third party.

Advantage of Bill of Exchange

Companies have used Bills of Exchange for many years. Their longevity is due to the advantages they provide in a trading transaction.

1.     A Bill of Exchange facilitates the granting of trade credit to a customer.
2.     A Bill of Exchange provides a legal acknowledgement that a debt exists.
3.     It will provide the seller with access to finance.
4.     It will provide easy access to the legal systems in the event of non-payment.
5.     The following are the advantages of a bill of exchanges:
6.     It's a legal proof of debt.
7.     It's a convenient method for the transfer of debt
8.     A creditor will sue on the bill itself
9.     It's a negotiable instrument and may be transferred for settlement of one's debt without difficulty.
10.     It can be paid before due date by discounting.
11.     A debtor enjoys the benefit of full period of credit.
12.     It affords an ease means that of transmitting money from one place to another.

Characteristics of Bill of Exchange

1) There are three parties to a bill:
i. Drawer one who give the order
ii. drawee person to whom the order is given and if the drawee accepts the bill by signing it he's called the acceptor
iii. recipient person to whom the payment is to be created (by the drawee/acceptor).
iv. generally one person may take on 2 roles e.g. wherever he attracts a bill owed to himself or payable to the drawee e.g. a person drawing a cheque on a bank and owed to the bank itself

Bill of Exchange

Bill of exchange is an unconditional order in writing drawn by one person on another, signed by the accepter that show the acceptor should pay on demand or in future time a certain sum of money to specified person or to the bearer.