Bill of Exchange - An Important Document in Export
Exporting typically involves a number of unique risks that may be unfamiliar to traders or business owners used to trading domestically. A bill of exchange helps offset some of the risks associated with exporting. Long-term commercial contracts between companies in different countries can be severely affected by exchange rate fluctuations, so fixed payment terms in a bill of exchange give exporters the security of a fixed price. A bill of exchange is a written order, used primarily in foreign trade, requiring one party to pay another party a fixed sum of money at sight or by a specific date. It is used in international transactions as a negotiation tool. It also offers protection to an exporter. By writing a bill of ex...