The extension of the commercial bill means that after the expiration of the commercial bill, the acceptor cannot pay the bill on time, but extends the redemption period of the bill for a period of time.
What is the extension of commercial tickets, what are the risks, and can the ticket holder accept it casually
For example, let's take an example, we have a commercial bill of 100,000 yuan, and after expiration, we will find out the bearer's acceptance, but due to the drawer's tight funds, we cannot redeem it on time. So the drawer negotiated with the bearer to re-issue a new commercial bill to the holder, which may be 110,000 yuan with interest, and agreed to pay the ticket in the next 3 or 6 months, which is the extension of the commercial ticket.
What is the extension of commercial tickets, what are the risks, and can the ticket holder accept it casually
As the last bearer, can the commercial bill be accepted when it comes to the extension, and what are the risks? The commercial bill extension shows that the drawer's financial situation has been a big problem, if the bearer rashly accepts, not only the commercial bill after the extension may not receive the ticket payment when it expires, but also will lose the right of recourse to all the previous hands of the bill. In this case, the holder's right to the instrument will not only decrease, but also increase the risk of redemption as the term is extended.
What is the extension of commercial tickets, what are the risks, and can the ticket holder accept it casually
If it were you, would you accept the payment for the commercial ticket extension? Your attention, comments + likes are the biggest motivation for my creation.
(Tianxiatong Commerce - your personal bill expert, the pioneer of bill Q&A, no longer confused in the face of commercial bill financing)