Time Draft

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Related to Time Drafts: sight draft, acceptance bill, Accepted Draft

Time Draft

A written order to pay a certain sum in money that is payable at a particular future date.

Time drafts, sometimes called time bills or time loans, are frequently used by merchants to finance the transportation of goods.

Cross-references

Commercial Paper.

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References in periodicals archive ?
This is where you pick your terms of sale: letter of credit (L/C), sight or time draft collection or open account.
To expedite matters, a time draft collection procedure may be used where the draft is sent by the forfaiting bank to the buyer's bank along with the original shipping documents and instructions to release the documents once the draft has been accepted ("documents against acceptance") and, if necessary, avalized.
Time drafts are similar to sight drafts in that the procedure for getting the shipping documents and other paperwork to the customer through the banks is the same.