Legal Definitions - time bill

A time bill is a type of draft that specifies a payment date. A draft is an unconditional written order signed by one person (the drawer) directing another person (the drawee or payor) to pay a certain sum of money on demand or at a definite time to a third person (the payee) or to bearer.

For example, if a company wants to buy goods from another company but doesn't have the money to pay for them right away, they can use a time bill. The company would write a draft that specifies a payment date in the future, and the other company would agree to accept the draft as payment. This allows the first company to receive the goods they need without having to pay for them immediately.

Another example of a draft is a check. When you write a check, you are essentially creating a draft that instructs your bank to pay a certain amount of money to the person or company you are paying.

Overall, a time bill is a useful tool for businesses that need to make purchases but don't have the funds available at the time of purchase. By using a time bill, they can delay payment until a specified date in the future.