Content

• Steps
• Method 1 of 1: Write your bill of exchange
• Tips
• Warnings
• Additional articles

A bill of exchange is a written agreement to repay a debt. It is sometimes called a receipt. This document is legally enshrined. Take the time to learn how to write a bill of exchange or receipt to help you collect your debts.

Steps

Method 1 of 1: Write your bill of exchange

1. 1 A secured bill of exchange must include the following required elements:
   • Basic conditions - what happens if the borrower does not pay on time.
   • Loan amount - the amount that is borrowed
   • Collateral - list all goods, services, and values ​​used as security for the debt
   • Maturity dates - the dates when the borrower must repay the bill
   • Interest rate - the amount of interest accrued during the validity of the bill and the terms of missed payments, if any
   • Amount after adding interest or PI (loan amount + interest).
2. 2 Highlight the terms of the agreement between the borrower and the lender. Conditions must include the following:
   • Loan principal is the amount borrowed to the borrower.
   • Interest rate - the interest rate on the borrowed money. The interest rate is calculated on an annual basis.
   • Maturity - the date of the debt maturity
3. 3 Decide whether it is a bill of exchange secured or unsecured.
   • A secured bill of exchange requires the borrower to provide goods, property, or services as collateral if the borrower fails to pay the debt. The value of the collateral must be equal to or greater than the principal amount of the debt.
   • An unsecured bill does not require collateral.
4. 4 Make the bill legally secure. The document must include:
   • Legal names of all participants interested in the transaction.
   • Address and telephone number of each interested party, including the lender.
   • Borrower and witness signature. The creditor's signature may or may not be required. Requirements vary by country and by law.
   • Target. What will the money be spent on. This may also be optional depending on the country and legislation.
5. 5 Inform the borrower about the right to transfer the bill.
   • By default, payments on secured debts may result in the forfeiture of the mortgaged property instead of payment.
   • The borrower has the right to be informed that the receipt can be transferred by the lender to a third party. The original terms and agreement will remain in effect, but the debt will be paid to the other party.

Tips

• Once a bill of exchange is signed, it becomes a legal document.

Warnings

• The lender should be aware that an unsecured loan is not repaid if the borrower files for bankruptcy.

Additional articles

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