bill of exchange

What is bill of exchange?

bill of exchange definition and meaning on Finance terms:
A written order from one party (the drawer) to another (the drawee) instructing it to pay a specified sum on demand or on a specified date to the drawer or a third party specified by the drawer. These are widely used to finance trade and, when discounted with a financial institution, to obtain credit. <

 

reference: https://www.ecb.europa.eu/home/glossary/html/index.en.html

Tags: