Due Date of Bill of Exchange

A specific date in future for payment of the bill is called due date of bill.

Acceptance of Bill of Exchange

A process of signing on the bill by drawee with the word “accepted” is called acceptance of Bill.

 A bill of exchange for the amount of a purchase drawn by the seller on the purchaser, bearing the purchaser\'s signature and specifying time and place of payment.

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.