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.

The bill of exchange stipulates that Company ABC will pay Car Supply XYZ $25,000 in 90 days. Company ABC becomes the drawee and accepts the bill of exchange, and the goods are shipped.

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 ...