The advantages of Bill of Exchange are as follows:
- It is a legal evidence of debt, the creditor being able to save on the bill itself. It also fixes the date of payment.
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- It is a negotiable instrument and can therefore, be transferred by the holder to a third party in settlement of his own debt.
- It can be cashed before the due date by discounting it with a banker.
- Foreign bills help to expand foreign trade.
- The drawee may pay the bill before the due date and he can avail of the rebate.