A bill of exchange serving as a settlement and payment tool is widely used in international trade. Moreover, in various types of international transactions, a bill can act as a security, settlement, payment and / or credit tool. Therefore, it is widely used in both commercial and banking practice.
Historically, the bill of exchange was widespread in many countries. However, in Russia, Belarus, as well as the countries of the former USSR, the use of spending was limited. Transfer of payment is possible if the track has assets equal to the bill amount. Abroad, it is considered obvious that everyone the merchant has funds or credit from another person on whom you can trace the bill. In the countries of the former USSR, the presence of such coverage does not mean the possibility and mandatory payment, as abroad. Therefore, preference is given to a simple bill that directly establishes personal debt. A simple bill involves a faster collection of payments, which explains its greater popularity in Russia and Belarus.
The bill as a settlement and payment tool is actively used in commodity transactions. In this case, both a simple and a bill of exchange can act as a form of treatment.
With a simple bill, a foreign buyer writes a bill to a supplier.
The endorsement used to transfer bills offers its participants additional opportunities to simplify and expedite payments and settlements. The use of promissory notes in international settlements, especially on commercial loans for delivered goods, creates a number of inconveniences. The seller must inform the foreign buyer of the exact amount of the bill before shipment, which is not always possible, and the buyer must write out the bill and forward it to the seller for verification. The seller, having checked the bill, must forward it back to a foreign buyer, who only after that can sign it and amule it with the bank. Therefore, in commercial settlements, spending is used.
Unlike solo-vixels, spending is prescribed by the seller of the goods – a traveler and is his unconditional order to the payer – a tracer, which is usually the bank of a foreign buyer that accepts the spending, pay the bearer of the expenses the amounts indicated in them within the specified time. Tratts, as well as solo-vixel, can serve as a means of calculation, i.e. transferred to other persons through endorsement, the amount of which is unlimited.
In accordance with this scheme, the exporter puts a bill (1). The importer pays it immediately at a discount (concrete) (2), while the exporter puts the bill on the full value of the goods. The importer accepts the bill and takes it into account in the bank (4), receiving a bill amount minus the discount in favor of the bank (5). When the bill expires, the importer pays the bill to the bank. Thus, the importer, using the negotiable bill, receives a loan from the bank and an interest discount on the price of the goods, and the exporter sells the goods with immediate payment. Other, more complex, schemes for using bills in the course of a foreign trade transaction are also possible.
The bill also carries a credit function.
For example, a chemical company buys a bill from a bank (1.2) and is calculated for electricity with a thermal power plant (3.4). The last bill of exchange for maturity presents a bill to the bank for repayment.
The bill indicates the amount that the borrower must return to the creditor. Interest for using a loan is often paid by the borrower when issuing a loan. Therefore, the amount received by the borrower and the amount indicated in the bill do not coincide. Such an operation is called discounting – determining the value of the current value, provided that in the future, after accruing interest on it, it amounts to a bill amount.
If the seller, having a bill in his hands, needs funds immediately, he can offer any bank to buy this bill from him, the payment term for which will come in the future in accordance with the dates indicated therein. The purchase by a bank or a specialized credit institution of bills before the expiration of the bill is called bill accounting. At the same time, the bank makes a profit. Discount is the difference between the nominal value of the bill (i.e. the bill amount) and the amount received by the bill holder:
D = S-P,
where D is the size of the discount;
S – nominal value of the bill;
P is the amount received by the borrower.
In this case, the rights to receive funds by the bill holder-seller of goods to the bank are reassigned. Such an operation is called forfaiting and allows the bill holder to thus turn the loan transaction into cash (Fig. 9).
After invoicing the exporter (1), the importer pays with a rolled (2.3) bill (4). Having received a bill from the importer, the exporter transfers it to the forfeiter (5) in exchange for cash payment (6)*.
Currently, the economy of the Republic of Belarus has developed a dual situation. On the one hand, stabilization is observed in industry, which is expressed in a decrease in the rate of decline in production. On the other hand, the problem of non-payments, which has become universal, still remains. Wexel is one of the main tools using which you can really reduce the amount of non-payments. Analyzing the functioning of the bill in the markets of other countries, it can be noted that the largest volumes of output of bills occur during the so-called non-payment crisis. This follows from the very essence of the bill.
The bill market is expanding quite quickly, which has many reasons that attract investors to these securities:
Profitability. The yield of bills is comparable to the return on deposits. The high profitability of financial bills, even in conditions of high inflation, allows us to consider this financial instrument not only as a savings, preserving capital from depreciation, but also as a funded, income-generating one; Reliability. Wexels are highly reliable securities. Of particular trust are bills issued by emission syndicates secured by the assets of several banks that are jointly and severally liable for debt obligations; Liquidity. This investment advantage of the bill involves several aspects. Firstly, many banks in the context of billing emissions provide for the possibility of early repayment of the loan. In this case, either a complete or partial loss of interest is possible depending on the issuer’s policy. Secondly, if it is impossible to early repayment of the bill, if there is a buyer, can be sold on the secondary market. Thirdly, the bill can be used as a means of payment in the calculations for goods and services. Mortgage value. Wexels are accepted as collateral for a loan not only in an issuing bank, but also in other banks. Many exchanges accept bills as a contribution guaranteeing the execution of futures contracts. It is very convenient to use the bill as a collateral, since it can be put in a safe for storage for the entire time of the billing period. It cannot be laid in two places at the same time, and according to transfer labels it is easy to trace the entire path of the debt obligation from the owner to the owner. A means of overcoming the crisis of non-payments. The versatility of the bill, the possibility of its use as a means and lending, and payments make it possible to combine the interests of both financiers and manufacturers.