What is Bill of Exchange Characteristics and filling bill of exchange

Bill of Exchange

A bill of exchange is a commercial document that guarantees that one person will pay another an amount of money on a certain date . Specifically, the it is defined as a written instrument by which one person, called the drawer , orders another, the so-called drawee or debtor , to pay a sum of money on a certain due date. Payment of the bill can be made to the drawer himself or to a third party, called beneficiary or payee , to whom the drawer has transmitted (or endorsed) the bill of exchange.


The document must have at least the following characteristics:

  • Specify the place of issue.
  • Denomination of the currency in which it was issued.
  • I ride in letters and numbers.
  • Date on which the document was issued.
  • Due date.
  • Issuer data (Issuer).
  • Address of the bank where the payment will be made (not mandatory).
  • Data of the person who must make the payment (drawee).
  • Explicit acceptance of the person who must make the payment.
  • Signature of the issuer of the bill of exchange.
  • Stamp duty rate .
  • Identification of the document used to complete it.

Who intervenes in a bill of exchange?

The following people may also intervene in the operation of the bill of exchange:

  • The endorser : the person who endorses or transmits the bill of exchange to a third party.
  • The endorsee : the one in whose favor the bill is endorsed.
  • The guarantor : the one who guarantees the payment of the bill.

How to fill out

To fill out, the following sections must be included:

  • The name “bill of exchange”.
  • The place and date of issue of the letter.
  • The order to pay a specific sum, with the amount indicated in letters and figures.
  • The expiration date.
  • The place of payment.
  • The name and address of the drawee.
  • The name of the beneficiary or policyholder.
  • The signature, name and address of the drawer.
  • The acceptance, date of acceptance and signature of the acceptor.

Difference between bill of exchange and other financial instruments

Although the bill of exchange is a means of payment like other financial instruments, it has some special characteristics, among which are:

  • It is issued by the creditor or beneficiary.
  • It requires the explicit acceptance of the debtor, which does not occur with other financial instruments.
  • It allows interest to be set at the time of payment, which does not happen with a check, for example.
  • This is a credit and not a demand payment.

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