Difference between a bill of exchange and a promissory note.
(a) A bill is prepared by the creditor and accepted by the debtor, a promissory note is prepared by the debtor.
(b) There are three parties to a bill, there are only two parties to a note.
(c) A bill requires acceptance to acquire financial status, a note in itself has financial status.

Explanation

Bills of Exchange

A bill of exchange could be a understanding between 2 parties—the purchaser and also the seller—used primarily in international trade. it's documentation that a getting party has united to pay a merchandising party a collection total at a preset time for delivered merchandise. the client or marketer usually employs a bank to issue the bill of exchange thanks to the risks attached international transactions. For this reason, bills of exchange square measure generally conjointly stated as bank drafts.


Bills of exchange are often transferred by endorsement, very similar to a check. they'll conjointly need the client to pay a 3rd party—a bank—in the event that the client fails to create sensible on his agreement with the vendor. With such a stipulation, the buyer's bank can pay the seller's bank, thereby finishing the bill of exchange, then pursue its client for compensation.


Promissory Notes

Promissory notes square measure like bills of exchange therein they, too, square measure a monetary instrument that's a written promise by one party to pay another party. they're debt notes that give finance for either a corporation or a personal from a supply apart from a conventional investor, most ordinarily during allone in every of the parties in a sales dealing.