Sight drafts may be used to collect past-due accounts receivable or to obtain cash on delivery when shipments are made to new customers or customers with poor credit.

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Sight drafts are often used as a form of payment and may be used to collect past-due accounts receivable or to ensure payment for new customers or those with poor credit by requiring cash on delivery.

Sight Drafts May Be Used to Collect Past-Due Accounts Receivable