Syndicate
Business Bills
They are commercial documents that, usually, have its origins in commercial operations. They are also known as exchange bills.
They include an order that requires from the drawee (a bank client, a common or legal person against whom the bill is drawn) to be paid to the drawee (person that draws the bill), by a banking institution, a determined amount of money at the expiration of the bill, characteristics of the bills of exchange:
- They are issued at the banks order
- They usually present periods of maturity that go from six to twelve months.
- They are very similar to the promissory notes as for forms of negotiation and by the existence of organized markets.
- Agents that intervene:
- Issuers: A financial institution that does the function of a company into an instrument of credit with banking guarantees.
- Subscribers: buyers, other companies or common investors
- The business bills can be placed in two different ways:
- Direct collocation: The own bank is the one in charge of placing the bills directly to their clients.
- Allocation on the stock exchange market: It is done by signing a contract of adhesion between the banking institution and the stock exchange market, for which the first delivers the effects to the second to be auctioned at a discount.