Know the differences between bill of exchange, check and promissory note It will allow you to make payments, transactions or financial procedures efficiently and safely, such as short and long-term loans. In addition, you must verify that the complete data of the drawer, debtor and / or holder of the commercial document, so that the security do not be rejected.
In the world of business, payments and sales, it often happens that using credit titles As circulating, it is safer than paying with cash, either to cancel a debt or to provide an unconditional payment order.
The similarities and differences between these circulars are not difficult to recognize. The bill of exchange, check and promissory note give credibility and rights to their accepting parties, such as the drawer, drawee and holder of the commercial document.
Write down the recommendations and clearly identify the differences between these circulators, according to Law 27287, Law of Securities of Peru, or that of your country, so that you can carry out your transactions or financial procedures without falling into scams. Never sign them blank.
What is a bill of exchange and what is it for?
- Commercial document through which a creditor or drawer issues a payment order to its debtor or accepting drawee, who must make it effective on a date and in a specific place – interest can be charged. It can also be considered as a policyholder or holder of the bill of exchange to whom the payment of the amount set in this credit instrument must be made.
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What is a check and what is it for?
- Commonly used commercial value title that establishes an immediate collection and that must be paid by a person, organization and / or financial entity that issues it. The check is drawn up and signed by the person or company that grants the unconditional payment order to the beneficiary or holder.
What is a promissory note and what is it for?
- Document of mercantile value that supports a promise and date of payment by the debtor towards the drawee or holder of the promissory note. This security is usually bearer or endorsable, so it can be transferred to a third party and issued by private individuals, companies or the State.
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Differences between bill of exchange, check and promissory note
Identify the important parts and data in the following table of differences and similarities of these securities:
| Bill of exchange | Cheque | I will pay |
|---|---|---|
| Issued by the creditor, drawer, beneficiary or drawer. | Issuer / drawer and bank agree to disposition of funds to pay the beneficiary, receiver or holder. Sometimes there is an endorser or guarantor. | Issued by the debtor, drawn or drawn. |
| Requires acceptance of the debtor. | It can be personal, conformed, banking, window or crossover. | It establishes date in which it will be able to be collected. |
| It consists of a credit. | Payable at sight. | Bearer or endorsable. |
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