Free bill of exchange (draft) template
A bill of exchange, called a draft in trade finance, is the exporter's written order to a bank or to the buyer to pay a sum at sight or at a set future date. Download the Excel template, fill in the tenor, the amount in figures and in words, the payee and the drawee, then sign it.
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What the template covers
- Draft number, place and date of issue
- Amount in figures, with the currency
- Tenor: at sight, or a period after a date such as the bill of lading date
- Payee: pay to the order of (usually the exporter itself or its bank)
- Amount in words
- Drawn under: issuing bank, credit number and date, when the credit asks for it
- Drawee: the bank named in the credit, or the buyer in a D/P or D/A collection
- Drawer's name and signature, and space for the drawee's acceptance
Sources
Guides on this topic
Who is the drawee
Under a letter of credit the draft is drawn on the bank named in the credit: UCP 600 article 6(c) says a credit must not be issued available by a draft drawn on the applicant. In a documentary collection (D/P or D/A) the draft is drawn on the importer. The drawer is the exporter, or the beneficiary of the credit, who signs it, and the draft is usually made payable to the drawer's own order or to its bank.
Tenor and amount
A sight draft is payable on presentation. For a usance draft, the maturity date must be clear from the draft itself, for example "60 days after bill of lading date 14 May 2026" or a fixed date. Draw it for the amount claimed in the presentation, in figures and in words; if the two differ, the amount in words is the one that is examined (ISBP) and payable (UK Bills of Exchange Act 1882, section 9).
Corrections, signature and acceptance
Authenticate any correction with the drawer's signature or initials. The drawer signs the draft. When a usance draft is accepted, the acceptance is written on the bill and signed by the drawee, and the drawee's signature alone is enough (Bills of Exchange Act 1882, section 17). Keep the credit number, amounts and dates consistent with the credit and the other documents.
Common questions
What is a bill of exchange in export?
An unconditional order in writing, signed by the drawer, requiring the drawee to pay a sum certain in money on demand or at a fixed or determinable future time (UK Bills of Exchange Act 1882, section 3). In trade it is called a draft and is used in letters of credit available by acceptance or negotiation and in D/P and D/A collections.
What is the difference between a sight draft and a usance draft?
A sight draft is paid when it is presented. A usance (time) draft is paid at a set period after sight or after a date, such as 60 days after the bill of lading date; it is accepted first, by the buyer in a D/A collection or by the bank under an acceptance credit, and paid at maturity.
Can the draft be drawn on the buyer under a letter of credit?
Not as the way the credit is paid: UCP 600 article 6(c) says a credit must not be issued available by a draft drawn on the applicant. If a credit lists a draft on the applicant among the required documents, banks examine it like any other document.
How do I write the amount in words?
Write the currency and the whole amount in words, for example "US dollars twelve thousand three hundred forty-five and cents sixty only" for USD 12,345.60, and check that it matches the figures. Triplicate's free amount in words converter writes it for many currencies.
Do I need a draft for every letter of credit?
No. Present a draft only when the credit calls for one; credits available by acceptance or negotiation usually do, and many sight payment credits do not.
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