Bill of exchange

Bills of exchange have been a common credit hedging and cash-saving asset in international business for centuries. With the help of the bill of exchange of exchange, you can buy on credit without involving a bank, or sell safely on credit.

A bill of exchange is a security subject to strict formality, negotiable by operation of law (ipso jure), even without a separate permissive decree clause (to order), which contains a demand for payment or a promise to pay. Its variations, issuance and use, as well as the enforceability of bills of exchange claims, are regulated by bills of exchange laws (national bills of exchange laws and the Geneva International Bill of Exchange Convention, 1930).

An entrepreneur can work with a foreign bill of exchange, a foreign bill of exchange for his own decree and his own bill of exchange. Foreign bill of exchange are more popular and widespread in international business life.

The foreign bill of exchange is executed by the drawer/issuer of a bill of exchange of the promissory note: he calls on someone to pay a specified amount to a named third party at a specified place and time. It is not necessary that any of these be financial institutions. In this case, the promissory note transaction has three actors: the issuer, the drawee called to pay on the promissory note, and finally the beneficiary, who receives the amount of the bill of exchange from the promissory note from the debtor at maturity. A foreign bill of exchange note can be a bill of exchange ( draft ) or an acceptance according to the identity of the promissory note debtor. 

In international business life, the foreign bill of exchange of exchange for one's own decree is often used. Here, the drawer/issuer of a bill of exchange of exchange is the seller of the goods, who is also the beneficiary, and the recipient is the buyer of the goods. As a seller, it is our well-understood interest that our buyer accepts such a bill of exchange, i.e. signs it, thereby acknowledging his payment obligation.

A bill of exchange is practically a promise to pay. The issuer of the bill of exchange promises to pay a specified amount to the beneficiary named on the promissory note at a specified place and time. In a sales transaction, the issuer of the bill of exchange is always the buyer, and the beneficiary is the seller.

The range of participants in the bill of exchange can be expanded with the guarantor of the bill of exchange, who signs the first page of the bill of exchange of exchange anywhere in addition to the issuer and the acceptor (this is with his bill of exchange). In the case of the so-called promissory note, the promissory note debtor is the underwriter. (After the primary debtor, all those who sign the promissory note anywhere are responsible for the payment of the bill of exchange note.) However, it is important that the quality (security) of a bill of exchange does not depend on how many people signed it, but on the creditworthiness of the signatories. 

In general, any deed (even a simple piece of paper) is a valid bill of exchange if it contains all the mandatory features of a bill of exchange.