Bills of Exchange (BOE) Payment Realized Procedure is common process against letter of credit (LC). Bills of Exchange is a documentary acceptance payment method. We know every company recovery his credit by the process. Bill of Exchange is a trust worthy transaction to buyer and seller.
Below are the simple steps guide of how the payment method works:
- Supplier submits BOE, along with original payment documents to their bank.
- Suppliers bank submits BOE, and copy payment documents to Buyers Bank.
- Buyers bank submit BOE, and copy payment documents to Buyer for approval.
- Buyer approve BOE, on standard terms As sight/60/90 days.
- Buyer bank informs the suppliers bank that Buyer have accepted the BOE on standard terms.
- Suppliers bank release payment documentation including Bill of Lading to Buyer.
- On due date Buyer bank takes the money out of Buyer account and pays to the suppliers bank.