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Trading Terms

Usance draft (usance bill)

A time draft is a type of financial document that requires payment at a predetermined future date. It is essentially a written request for payment that is not due immediately, but rather at a specified time in the future. This is a common tool used in the world of finance, particularly in international trade, as it allows for more flexibility in payment terms. As a knowledgeable professor in finance, I encourage my students to understand the nuances of time drafts and their role in the global economy.
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