Bills of exchange serve for a short-term financing within goods trading. If a customer pays his invoice by a bill of exchange payment, the vendor provides him with a financing (payment after three months). The bill of exchange claim, the vendor has against the customer is proved by the ownership of the certificate (the bill of exchange). This is a security for the vendor.

Bills of exchange can be used for a refinancing. The vendor, can use the bill of exchange e. g. as means of payment to clear his own payables at a vendor's or he can discount it at his bank, i. e. the bank buys the bill of exchange not yet due and deducts interests up to the due date.

In this process, we will sell a product to a customer on a loan basis. Customer 2145 pays the invoice with the help of a bill of exchange. We pass this bill of exchange to our bank for a refinancing. At the bank, it is used for a discounting. The bill charges (e. g. discount and collection charges) are debited to the customer as claims. After the expiration day and the country specific period for the bill of exchange has passed by, charge off the bill of exchange liability (recourse).

Bill of exchange is mostly used in European countries. Therefore in this scenario European data is used.