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Zorluk: OrtaMeans of Payment in Home Trade

A manufacturing firm in Kaduna wishes to purchase heavy equipment from a seller in Abuja who insists on immediate payment guaranteed directly by a financial institution rather than an individual trader's account. Which payment instrument is most suitable for the firm to obtain from its bank to complete this transaction?

  1. Bank draftCevap
  2. B
    Promissory note
  3. C
    Standing order
  4. D
    Open cheque

Cevap

The most suitable instrument is a bank draft, as it is issued by a bank against its own funds and guarantees payment to the seller.
A bank draft (or banker's cheque) is drawn by a bank upon its own funds. Because the bank guarantees the payment, it removes the credit risk associated with private account cheques and fulfills the seller's requirement for a bank-backed payment.

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1
Analyze the seller's requirement
The seller demands immediate payment backed and guaranteed by a financial institution rather than an individual customer's account.
Personal or corporate cheques carry dishonour risk if the account has insufficient funds.
2
Evaluate the commercial payment instruments available in home trade
A bank draft is drawn directly by a commercial bank on itself after deducting the sum from the buyer's account, making it a guaranteed non-legal tender instrument accepted widely in high-value transactions.
Since the issuing bank guarantees the funds, the recipient faces zero risk of non-payment upon presentation.

Anahtar Kavram

Bank Draft as a Guaranteed Payment Instrument in Home Trade
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Konular

Means of Payment in Home Trade

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