In the event that we are carrying out any type of negotiation between 2 or more people, we may be presented with a series of options when it comes to drawing payment dates. This type of tool facilitates the fulfillment of the obligations and payments clarified previously in the conversations.
Each of these implements to acquire must be allowed by both parties of the business, in this way, there will be no problem when canceling the entire debt or payment to be made. Within these options that can be presented to us, there are some vital to close the negotiation.
Now from here, it is when we show you how valuable checks, bills of exchange and promissory notes can be when making a negotiation. But, we have to keep in mind that they are not all the same. Below we will tell you about each of them and why they are different.
What is the bill of exchange?
This has the function of being mandatory. It is a paperwork or document commonly presented by the state, a banking entity or a third party in which an agreement between both parties is clarified in which one of them ratifies the cancellation of a certain payment or debt with the other participant.
Said document ratifies the amount of money that the debtor will have to pay, as well as the stipulated time with which he has to cancel his respective debt or payment and in some cases it can also specify the exact place in which will make the total settlement of the money to be paid.
What is a promissory note?
Similarly, the promissory note is a document or paperwork in which one person promises another the cancellation of a certain payment or debt. Only two people are involved in this transaction, which are the respective debtor and the beneficiary or person to whom the payment can be made.
The debtor in this case is the one who drafts and issues this document. As well, he makes the promise to pay said money in a certain time to the respective beneficiary of the promissory note. It is important to note that the promissory note is not issued by any entity. It is only part of the respective debtor.
What is a check?
It is an official document issued by a banking entity and provided to a specific client, who will have the ability to make payments and cancel debts through this document without any problem. In this the exact amount of money, the beneficiary of payment and the place where the collection will be withdrawn will be declared.
The check also has an important characteristic to take into account. At the time it is made or issued. The beneficiary of the payment or debt will have to go as soon as possible to collect it at the place specified in the document.
What are the differences between bill of exchange, promissory note and check?
In each of these procedures the number of people required is different. On the part of the bill of exchange are the debtor, the beneficiary and the one who issues the document, this can be the state or a bank.
In the promissory note, this action is normally carried out between 2 people who are the beneficiary or person to whom the payment can be made and the respective debtor. While on the part of the check, the document is issued by the bank but this institution is not part of the transaction of the client and the beneficiary.
Another important point to keep in mind is that the bill of exchange is a mandatory document to be paid, while the promissory note is simply a written promise by the debtor to the respective beneficiary thereof.
