Commercial draft

Similar financial terms

Commercial paper
Short-term, unsecured promissory notes issued by corporations with a high credit ratings. Their maturity ranges up to 270 days.

Commercial risk
The risk that a foreign debtor will be unable to pay its debts because of business events, such as bankruptcy.

Commercial Grain Stocks
Domestic grain in store in public and private elevators at important markets and grain afloat in vessels or barges in lake and seaboard ports.

Commercial Paper
Short-term promissory notes issued in bearer form by large corporations, with maturities ranging from 5 to 270 days. Since the notes are unsecured, the commercial papers market generally is dominated by large corporations with impeccable credit ratings.

Trade draft
A draft addressed to a commercial enterprise.

Time draft
Demand for payment at a stated future date.

Sight draft
Demand for immediate payment.

Payable through drafts
A method of making payment that is used to maintain control over payments made on behalf of the firm by personnel in noncentral locations. The payer's bank delivers the payable through draft to the payer, which must approve it and return it to the bank before payment can be received.

Bank draft
A draft addressed to a bank.