6.2 Trade Finance

6.2.1 Bill of ExchangeAn unconditional order in writing, signed by the drawer, directing the drawee to pay a certain sum on demand or at a fixed time to, or to the order of, a payee (Negotiable Instruments Act, 2034). The accepted bill becomes the drawee's own obligation — acceptance converts an order into a promise.6.2.2 Trade BillsShort-term paper from trade: commercial bills and usance bills discounted by the bank, giving the seller immediate cash and the bank self-liquidating paper tied to goods' movement.6.2.3 Acceptance of CreditThe bank accepts bills for a customer (acceptance credit), lending its name instead of money; the customer must fund the bank before maturity.