A Bill Of Exchange, also known as a draft, is a written order used primarily in international trade that binds one party to pay a fixed sum of money to another party on demand or at a predetermined date. Bills of exchange are similar to checks and promissory notes—they can be drawn by individuals or banks and are generally transferable by endorsements.The use of bills of exchange dates back to the thirteenth century, when they were used primarily by merchants trading goods across borders. Today, bills of exchange are still an important tool for businesses engaged in international trade, as they provide security against non-payment and offer other benefits such as:
Faster payment than through traditional bank wire transfers
Easier tracking than through traditional letters of credit
