Bills of Exchange
Bills of Exchange are a source of finance in specifically in the export trade. A bill of swapping is an unconditional arrange in writing addressed via one person to another needing the person to whom it is addressed to pay to him as his order a particular sum of money. The commonest categories of bills of exchange used in financing are accommodation bills of exchange. For a bill to be a lawful document; it must be like
- Drawn via the drawer.
- Bear a stamp duty
- Acceptable via the drawer
- Mature in period.
It is necessitate raising finance with:
- Giving it out as security.
- Negotiating
- Discounting it