ABSTRACT
The bill is one of the oldest instruments of credit in the world, and this chapter provides its origins far back in classical history. The function of the bill is to provide essential short term finance for trade and industry. Bills may be drawn for any period, the most usual being ninety days, or three months, but many are drawn for anything from thirty days to six months. These 'term' bills are negotiable instruments which may be bought and sold on the London discount market. When the bills are presented to the banks or accepting houses on whom they are drawn, the drawees 'accept' them by signing across the bill a promise to pay at the end of the period. The cost to a borrower of raising money by means of an acceptance credit varies according to the business. It is most important to exporters that they should be aware of the limitations of foreign domicile bills.
