The Bill of Exchange is one of the documents that are common in export-import transactions. Bill of Exchange or in Indonesian language called Wesel is a payment instrument containing unconditional orders from the Wesel issuer (drawer) to another party (drawee) to pay a certain amount of money to a particular party (payee or beneficiary) or other party appointed (order) at the time indicated or at a specific time to come in accordance with the type of notes. Look at bill of exchange website for more information about bill of exchange.
Related parties in the Bill of Exchange
The drawer is the party that issues the Bill of Exchange
Drawee, the party who receives an order from Drawer to make a payment for a certain amount of money or the party who makes the payment.
The one who’s making the payment, and the party, appointed by Drawer to receive money or the party receiving payment.
Tenure on the Bill of Exchange
The tenor of note is the period during which a record can be paid. Judging from the payment term, then the tenor on the Draft / Bill of Exchange / Wesel can be distinguished on Sight Draft (paid when indicated) and Usance Draft (paid after sometime later, according to the specified requirements).
The endorsement in Draft / Bill of Exchange / Wesel
Draft / Bill of Exchange / Wesel whose payment results are addressed to other parties or orders can be transferred by endorsement, i.e. transferring the right to pay a draft / bill of exchange from one payee to another payee by affixing the signatures of the original holder (support) on the back of the Draft / Bill of Exchange. The endorsement can be done in several ways, namely:
Blank endorsement, often also called general approval, is the transfer of rights to a note without mentioning the name of the party who will receive the right (payable to bearer).
Special Endorsement, transferring the right to a money order to a specific party, and this last party can still move to another party, usually in the notes contained the words “Pay to the law of … (name)”
Restricted Endorsement, the transfer of the right to a money order to another party, where the last party can no longer transfer it to another party, usually the words “Pay to … (name) only “.
Acceptance of Drafts / Bill of Exchange / Wesel
Draft / Bill of Exchange / Wesel that has been accepted (agreed to be paid at maturity) by a bank (banker’s acceptance) by affixing the words “Accepted” accompanied by signatures or can also be done by simply signing on the front Draft / Bill of Exchange / Wesel to distinguish it from endorsement.
Many studies have proven that the increase in the number of workers and students outside Indonesia is increasing. Not only that, but the frequency of Indonesian people visiting outside the country has also increased over time. Starting from this fact, we can conclude that the need for money exchanges, cross-country transfers, and various cross-country transactions also increases. Come on, consider the following tips to help you make transactions ranging from exchanging money to sending money.
Through Money Changer
The first thing most commonly done to make money exchange transactions is to go to a money changer. This place is straightforward to find. Starting from the airport, shopping, even on the roadside, it is not uncommon to see this exchange service signpost. The location is easily found in the country and abroad, making money changers very popular to conduct these transactions. Edits, but be careful, if you plan to exchange your money here, make sure the place is officially licensed, yes! So that the exchange rates obtained are better and avoid fraud cases.
Through the bank
Exchange money at the bank when you want to travel to another country is also quite commonly used. Besides being easily accessible because of the many branches, sometimes exchanging at a bank leaves a safer impression for the exchangers. The bank also has a reasonable exchange rate. But, specifically for the exchange of money at the bank, you better do it in the country of origin rather than in the destination country, because the purchase value is better than in the destination country. Now, in addition to exchanging, the bank also provides a feature of sending money across the country for those of you who need it. For example, the monthly transfer of children who study abroad, or give money to buy something through relatives abroad. In contrast to exchanging money, money transfers are usually included with several administrative conditions that include the number of the bank account to go out there.