The bill of exchange is a title of credit with which one person orders another to pay a monetary amount on a certain date. It is a commercial document that expresses an unconditional order to pay a borrower or beneficiary of a sum of money, in a place and with a specific expiration date.
At least three different figures are involved in the bill of exchange. On the one hand, the drawer is the person who issues the bill of exchange so that the debtor, or drawee, accepts it. The debtor is the one who must take charge of the payment of the bill of exchange at the time of the due date. Finally, the policyholder or beneficiary is the person who owns the bill of exchange and to whom it will ultimately be paid. Guarantors, endorsers and endorsers may also appear.
The bill of exchange differs from I'll payin which the promissory note in a document of commitment to pay a debt, while the bill of exchange is an official, commercial document, in which three people intervene. In addition, the promissory note usually includes interest.
How to fill out a bill of exchange
Bills of exchange have two parts. On the one hand is the front part where the data of the people who make up the operation are put. On the other hand, in the back we can find the information of guarantors or endorsers, if there are any.
- Place and date of issue of the bill of exchange
- Use by date
- Data of the beneficiary or holder
- Place where the payment will be made
- Name, signature and address of the person issuing the bill of exchange
Sometimes there is a guarantor who guarantees the operation. In this case, all the data of these natural or legal persons must be included on the back of the bill of exchange. In the event that the bill of exchange is endorsed, they must also include the information of all the endorsers on the back.