I've come across Bills of Exchange in bookkeeping texts but never in real life.
Are these ever used nowadays ? (I ask as they are legally defined in an Act of 1882.)
The BoE process is straightforward enough except for the process of early redemption to a discounting bank. It seems to me that if a BoE is issued unilaterally by a company, to even an existing business, there is no guarantee that the discounting bank will accept it as the drawee may have a poor credit record. Therefore, may I ask, is it normal to consult with the discounter ahead of issuing the BoE to a new customer ?
I'm taking it that no BoEs are issued to start-ups, is that so ?
(That said, I know of many small businesses that began life on post-dated cheques from suppliers.)
Are these ever used nowadays ? (I ask as they are legally defined in an Act of 1882.)
The BoE process is straightforward enough except for the process of early redemption to a discounting bank. It seems to me that if a BoE is issued unilaterally by a company, to even an existing business, there is no guarantee that the discounting bank will accept it as the drawee may have a poor credit record. Therefore, may I ask, is it normal to consult with the discounter ahead of issuing the BoE to a new customer ?
I'm taking it that no BoEs are issued to start-ups, is that so ?
(That said, I know of many small businesses that began life on post-dated cheques from suppliers.)