Definitions for sight draft
sight draft

Princeton's WordNetRate this definition:0.0 / 0 votes

1. sight draft, sight billnoun

   a draft payable on presentation

WikipediaRate this definition:0.0 / 0 votes

1. sight draft

   A banker's acceptance is a commitment by a bank to make a requested future payment. The request will typically specify the payee, the amount, and the date on which it is eligible for payment. After acceptance, the request becomes an unconditional liability of the bank. Banker's acceptances are distinguished from ordinary time drafts in that ownership is transferable prior to maturity, allowing them to be traded in the secondary market.A banker's acceptance starts with a deposit in the amount of the future payment plus fees. A time draft to be drawn on the deposit is issued for the payment at a future date, analogous to a post-dated check. The bank accepts (guarantees) the obligation to pay the holder of the draft, analogous to a cashier's check. The draft holder may hold the acceptance until maturity and receive the face value payment from the bank, or it may sell (exchange) the acceptance at a discount to another party willing to wait until maturity to receive the bank's promised payment. Banker's acceptances are advantageous in transactions between unacquainted parties by reducing credit risk, and are used extensively in international trade for this reason. In an agreement whereby goods will be sold at a future date, if the buyer does not have an established relationship with or otherwise cannot obtain credit from the seller, a banker's acceptance enables it to substitute the bank's creditworthiness for its own.Banker's acceptances are typically issued in multiples of US$100,000, with a term to maturity between 1 and 6 months.

ChatGPTRate this definition:0.0 / 0 votes

1. sight draft

   A sight draft is a financial instrument or legal document, often used in international trade, that is payable by a debtor upon being presented or "seen". It is a type of bill of exchange, where the debtor is typically a buyer and the drawee is typically a financial institution, often a bank. The draft ensures payment for the seller as it indicates the buyer's obligation to pay immediately upon the presentation of documents.

Matched Categories

1. • Draft

How to pronounce sight draft?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say sight draft in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of sight draft in Chaldean Numerology is: 8

2. Pythagorean Numerology

   The numerical value of sight draft in Pythagorean Numerology is: 4