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What is the Meaning of Sight Draft? – Definition, Usage, Payment

sight draft

Sight Draft Definition

Sight Draft is the financial instrument that is payable when it is presented, similar to the cheque.

It’s the most preferred form of payment in international trade. The exporter may not know the importer and his credentials in most of the cases during international trade.

Hence, he can not like to bear the credit risk. And sight drafts are very useful in facilitating overseas trade.

And the exporter would retain full ownership rights and title to the goods until full realization of the payment.

What is the Usage of Sight Draft?

What is the Payment of Sight Draft?

Also Read: What is the Negotiable Certificate of Deposit (NCD)? – Understanding, Advantages, and More

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