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Bills of exchange

This topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.

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April 21, 2021 at 10:04 pm #618464
ilham9089
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Sir what is the difference between advances against collections and discounting bills of exchange?
April 22, 2021 at 7:45 am #618490
John Moffat
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The end result is the same, but depending on the nature of the agreement there can be problems with advances on collections if any of the debts turn out to be irrecoverable.
April 22, 2021 at 4:44 pm #618534
ilham9089
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Oh ok but in bills of exchange the bad debts are usually insured against?
April 23, 2021 at 7:20 am #618563
John Moffat
Keymaster
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A bill of exchange would be guaranteed by the bank and it would be up to the bank whether or not they insured against it.
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