2016004支付工具之流通票据

Payment instruments Alongside the payment terms, the parties must also agree the payment instrument. For payment in advance and open account trading, the buyer may have a free choice of the instrument to use. The buyer will also be able to determine the timing of the payment (although that may have implications for the sales relationship). Under documentary credits and documentary collections, the choice of instrument is usually agreed by both the buyer and seller and often includes the use of negotiable instruments. Negotiable instruments Negotiable instruments, such as bills of exchange (also known as drafts) and promissory notes, are a frequent feature of export sales throughout the world. They are employed both as a means of extending credit to the buyer − usually on a short-term basis − and as a device to provide the seller with a negotiable security for payment. Usually, these instruments are a commitment by the buyer to pay a specified amount on a fixed date in the future (known as the maturity date). The seller may obtain immediate payment before the maturity date by discounting the instrument with a bank or other institution that is willing to do so. The seller does this by endorsing the instrument and handing it over to the discounting party. Bill of exchange in open account trading or documentary collections payable at a future date A bill of exchange orders the drawee (the buyer) to pay the agreed sum on a stipulated date. The buyer evidences acceptance of the order to pay by accepting the bill of exchange and returning it to the seller. The specific method of acceptance (signature on the front or back, the use of acceptance stamps and other information contained on the draft) will be determined by local law or bank regulation. The buyer’s acceptance constitutes an unconditional payment undertaking − ie it is required to pay the instrument at maturity, independent of its obligation under the underlying sales contract. As an example, a seller in one country may contract to ship machine parts to a buyer in another country. Payment is to take place 60 days from the date of shipment. The seller dispatches the goods and sends the shipping documents to the buyer. These documents include a bill of exchange drawn on the buyer, payable to the seller at the end of the 60-day period, and signed by the seller as drawer. The seller may then be able to use a bank’s trade finance services to negotiate the bill of exchange for immediate payment, once it has been accepted by the buyer. The above practice is commonly employed in foreign trade and is frequently used for sales between countries in Asia. The discounting of bills is an important activity for many banks in that region offering trade finance services. The banking facility offered is often referred to as a trade bills or acceptance bills service. Although bills of exchange are the type of negotiable instrument most frequently encountered in international trade, promissory notes may also be used. These have a similar effect, but they are drawn up and signed directly by the person undertaking to make payment, in this case the buyer. A promissory note is an independent payment undertaking that can be transferred from one person to another. Cheques, bills of exchange and promissory notes provide the main examples of negotiable instruments. A third party, such as a bank, can also guarantee the payment undertaking contained in these documents. Negotiable instruments − drafts in particular − play a key role in the payment mechanism under many documentary credits. This is because, in some cases, the credit is made available by acceptance or negotiation of a draft, with the drawee being a bank.