Example of a Bill of Exchange . Say Company ABC purchases auto parts from Car Supply XYZ for $25,000. Car Supply XYZ draws a bill of exchange, becoming the drawer and payee in this case.

A bill of exchange legally binds the buyer to pay an agreed-upon amount to the seller once goods are received. Both documents complete selling, shipping, receiving, and paying for goods.

Bills of exchange are used in commerce, particularly international trade, by businesses and banks in countries as far-flung and diverse as the U.S., Morocco, and Australia. Think of a bill of ...

A bill of exchange legally binds the buyer to pay an agreed-upon amount to the seller once goods are received. Both documents complete selling, shipping, receiving, and paying for goods. Bill of ...