time bill
Definition
Noun: A time bill is a type of financial document, specifically a draft or bill of exchange, that is payable at a specified future date rather than immediately upon presentation.
Usage
A time bill is used in commerce and finance to facilitate a deferred payment. The issuer (the drawer) instructs the payer (the drawee) to pay a specific sum of money to a recipient (the payee) on a predetermined future date.
Examples
- The exporter requested payment via a time bill with a maturity date 90 days after shipment.
- The company's treasury department manages all incoming and outgoing time bills to optimize cash flow.
- He discounted the time bill at the bank to receive the funds immediately, albeit for a fee.
Advanced Usage
- "to accept a time bill": This refers to the drawee formally agreeing, by signing the bill, to pay the specified amount on the due date. Once accepted, it becomes a firm obligation.
- The buyer accepted the time bill, guaranteeing payment in 60 days.
- "to discount a time bill": This is the process of selling a time bill to a bank or financial institution before its maturity date to receive immediate cash, less an interest charge (the discount).
- We needed liquidity, so we discounted the time bill at a 4% annual rate.
Variants and Related Words
- Time draft: A direct synonym for time bill.
- Usance bill: Another synonym, commonly used in international trade to indicate a bill payable after a period of time (the usance).
- Sight bill / Demand draft: The opposite of a time bill; a draft that is payable immediately upon presentation ("at sight").
- Bill of exchange: The broader category of financial instruments that includes both time bills and sight bills.
Synonyms
- Term draft
- Deferred payment bill
- Date draft
Related Phrases
- Maturity date: The specified future date on which a time bill becomes payable.
- Tenor: The time period until a time bill's maturity (e.g., "90 days tenor").
- Presentation for acceptance: The act of submitting a time bill to the drawee to obtain their agreement to pay it on the due date.
Noun
-
a draft payable at a specified future date
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