A _____ allows for a delay in payment.
A)bill of lading
B)time draft
C)banker's acceptance
D)sight draft

Question

Quizplus · Accepted Answer

A time draft is a type of draft that allows for a delay in payment. The payment is set for a future date, hence the term "time" in the name of the draft. The seller can use the time draft to obtain financing from a bank, which will pay the seller the amount due on the draft minus a discount or fee. The bank will then hold onto the draft until the payment date, when it will collect from the buyer.

A _____ Allows for a Delay in Payment