- A Bill of Exchange is a written acknowledgement of indebtedness.
- A bill f exchange is a negotiable Instrument and the holder can transfer it by end6rsemeflt to someone else, in payment, of a debt, provided that his creditor is willing to receive it.
- It serves as safe means o paying money.
- It serves as a legal document with which the creditor cart use to sue the debtor in case the debtor defaults.
- A bill of exchange reduces the risk of carrying large sums of money.