The following are the advantages of a bill of exchanges:
- It is a legal evidence of debt.
- It is a convenient method for the transfer of debt
- A creditor can sue on the bill itself
- It is a negotiable instrument and can be transferred for settlement of one's debt without difficulty.
- It can be cashed before due date by discounting.
- A debtor enjoys the benefit of full period of credit.
- It affords an ease means of transmitting money from one place to another.
It
is for the aforesaid advantage, a buyer can easily be included to
purchase goods and accept bills drawn on him by the seller when he is
not prepared to pay cash at the time of purchase.