Bill of exchange
An unconditional written order that binds one party to pay a fixed sum of money to another party on demand or at a predetermined future date. For example, a bill of exchange is drawn up by the exporter and accepted (and signed) by the importer, who then is responsible for paying on presentation of the bill at the appropriate time. When the bill bears no date, it is normally referred to as a sight bill. Where credit is involved, bills are variously referred to as time bills, tenor bills, or usance bills. Once accepted, bills can be sold or discounted. Bills accepted by companies with a high credit rating or that have the aval of a bank are often used in forfaiting.