Help with bills of exchange?
A french merchant arrives at a foreign market to sell his goods (payable in coins) while another french merchant arrives to purchase local goods (again payable in coins). If they share the same bank, with the help of a representative of the bank, both parties can sign a bill of exchange. The seller can settle the payment in coins for the purchaser.
The final exchange of the bills is carried out later in the bank, when the merchants return home.
I don't understand how the goods seller benefits from the arrangement here.
I also don't get whom the last statement is referring to, as far as who benefits here. Please help
- olliverLv 63 weeks agoBest Answer
The seller now has a transferable document which is legal proof that the buyer has agreed to pay the amount on a particular date.