time draft

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Related to time draft: sight 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 ?
If you pursue whole portfolio coverage, you would normally exclude sales made on letter-of-credit terms and possibly sales made against sight and time drafts, especially if you plan to forfait your time drafts.
The difference between the two is that under a time draft, the customer simply signs the draft promising to return to the bank at a specified date in the future and pay for the shipment.
A more practical approach is to time drafts and their reviews to reasonable but somewhat arbitrary feature-freeze dates.
One of the cheapest methods of payment is to sell on an open-account basis: The exporter sends shipping documents directly to the importer who pays the exporter, either upon arrival of the goods documents against payment (D/P), or on an agreed date thereafter - documents against acceptance of time drafts (D/A).

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