Bill of Exchange Functions
The Bill of Exchange performs many functions in international trade including:
Bill of Exchange Functions are to Facilitates the granting of trade credit in a legal format.Bill of Exchange Functions are to Provides formal evidence of the demand for payment from a seller to a buyer. Bill of Exchange Functions are to Provides the seller with access to finance by permitting them to transfer their debts to a bank or other financier by merely endorsing the Bill of Exchange to that bank or financier.Bill of Exchange Functions are Permits the banker or financier to retain a valid legal claim on both the buyer and the seller. In certain circumstances a bank or financier may have a stronger legal claim under a Bill than the party that sold them the debt.