time draft

(redirected from Time Drafts)
Also found in: Dictionary, Thesaurus, Legal.
Related to Time Drafts: sight draft, acceptance bill, Accepted Draft

Time draft

Demand for payment at a stated future date.

Time Draft

A check or other draft that is not payable to the payee until a stated date in the future. It contrasts with a sight draft, in which the payee may demand payment upon presentation of the draft to the appropriate party.

time draft

A draft that is payable a certain number of days after it has been presented. Compare sight draft.
References in periodicals archive ?
Time drafts involve significant risk to the seller and are similar in some ways to an open account since the seller relies on the buyer to return to his bank and pay for shipment a certain number of days after taking possession of the merchandise.
Time drafts are also known as documents against acceptance, or documents against usance.
Term options include cash in advance, documentary letter of credit, standby letter of credit, sight draft, time draft, and open account.