Commerical Bill

Glossary

Banking

Commerical Bill

A Commercial Bill or Bill of Exchange is a short-term negotiable debt instrument used in trade finance. The Bill evidences a binding agreement between a seller of goods and a buyer for the buyer to accept the bill to release shipment and pay a fixed amount to the bearer. Bills are self-liquidating as proceeds of the sale of the asset finance underlying the bill pay off the bearer.

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