The payee needs to be strictly limited to a specific party, such as "limited to ABC Company". Such a draft cannot be used for negotiation.

A bill of exchange can also be a "to order" bill. For example, under the payee, you can use the phrase "Pay according to the instructions of ABC Company". This draft can be transferred with the endorsement of the payee. If the payee is the payee, there is no need to endorse the transfer.

Bills of exchange can also be made blank. For example, under the payee, just write "formulated by ABC Company". The draft can be transferred after endorsement by the payee. If the payee is the holder, it can be transferred without endorsement.

Presentation

Presentation means that the holder lets the drawee pay or accept the bill at sight, depending on whether the bill is presented at sight or at a later date.

D/P means that the holder gives the bill to the payee for examination, payment or acceptance, depending on whether the bill is negotiated at sight or later.

Accept acceptance

If a time draft is presented, the payer shall bear the payment obligation by writing the word "acceptance", signature and date of acceptance on the front of the draft when it expires. The accepted draft will be returned to the holder, who will present it for payment again when it expires.

The documents presented are bills of exchange, and the drawee shall be liable for payment when the bill expires. Fill in the word "acceptance" on the front of the draft and sign it, and fill in the date of signature. The accepted draft is returned to the holder and submitted to the bank for payment at maturity.

Payment payment

For sight drafts, the drawee will pay the amount of the draft immediately upon presentation. For a time draft, the drawee will pay at maturity.

For sight drafts, the drawee pays at sight. If it is a time draft, it will be paid at the maturity of the draft.

Non-payment of bills and protests, bad checks and non-payment

Sometimes the drawee refuses or cannot pay or accept a bill of exchange, which is called a "dishonored bill".

Sometimes the drawee refuses or cannot accept the bill. At this time, such bills are called bad bills.

If a bill is dishonoured, the holder may exercise his right of recourse and ask the drawer or endorser to pay the amount of the bill. However, the holder must obtain a "rejection certificate" from a notary public, a court or other legally authorized institution to prove that the bill has been rejected. The certificate includes the date and place of the first presentation, and a statement that the payer refuses to pay or accept. This is a legal procedure in which a bill formally registered for payment or acceptance is refused by the drawee.

In case of bad tickets, the holder can exercise the right of recourse and ask the drawer or endorser to pay. However, the holder must first obtain a "refusal certificate" issued by a notary public, a court or other laws and regulations, and a certificate that the payer refuses to pay or accept the bill. The certificate shall indicate the place and date of the first presentation of documents, which proves that the drawee refuses to accept or pay. This is a legal procedure to prove that the bill has been turned into a bad ticket by the payer.

After obtaining the rejection certificate, the holder may present the bill for the second time. If the payer still refuses to pay, the certificate can be published in trade magazines in some countries. The possibility of publishing the refusal certificate gives the payer a certain payment pressure; Otherwise, his business reputation in the business world will be damaged.

After obtaining the refusal certificate, the holder can make a second presentation. If the payer still refuses to pay, in some countries, it can be exposed in local enterprise magazines, which may cause some pressure on the payer. If he still refuses to pay, his business reputation in the circle will be ruined.

However, exporters should bear in mind that protest does not guarantee payment, and further legal action may be required. Besides, protest is expensive, and it may also affect the continuous relationship with importers.

However, export companies should remember that defense does not guarantee payment, and other legal means should be taken. In addition, defense also costs money, which may also affect the existing relationship with the buyer.