Negotiating Bills of Exchange





Negotiating Bills of Exchange

A recent edition of Project and Trade Finance pointed out that the humble bill of exchange may not be so humble in the future. With the deterioration in payment practice many companies are looking for an independent acknowledgement of commercial debts outstanding. I am currently working on an export credit system in Poland and there the banks prefer to see bills of exchange when possible. When providing finance they like to see that there is a customer at the other end of the transaction and not just an invoice.


You can ask your bank to negotiate a bill of exchange on your behalf. The bank will provide you with the face value of the bill less the charge for negotiating it. This can be done for sight or term documentary bills of exchange or accepted bills without documents which the bank collects on your behalf.


The price at which the bill will be negotiated is based on the time from the date of negotiation to the value date of expected payment. If payment comes in late there will be an extra charge and if the

payment does not come in at all - the bank will want it's money back. You should get this point clear with your bank before negotiation.


Previous page
Next page
Return to this Article's Index
Return to Trade Guide
Send me your comments on the article

This material has been provided courtesy
of Obrico Ltd Global Trade & Finance.
Click here for Obrico Global Trade & Finance

Home - Trade Guide - Fun Section - E-mail me! - Internet Marketing - Interesting Sites
17 Wheatfield Road - Palmerstown - Dublin 20 - Ireland
Telephone: + 353 - 1 - 6267860
- - - -
Paseo Fondo Pere-Joan 39 - 08870 Sitges - (Barcelona) - Spain
- - - -