Difference between After Date Bill and After Sight Bill

After date bill and after sight bill are two different types of bills of exchange that are used in international trade transactions. While both types of bills serve the purpose of facilitating payments between parties, there are some key differences between them.



An after date bill, also known as a time bill, is a type of bill of exchange that specifies a fixed period of time from the date of its creation until the payment is due. The due date is determined by adding a certain number of days, months, or years to the date of the bill's creation.

Key points about after date bill:
- It specifies a fixed period of time from the date of creation until the payment is due.
- The due date is determined by adding a certain number of days, months, or years to the bill's creation date.
- The due date is usually mentioned on the face of the bill.
- The payment becomes due irrespective of whether the bill has been accepted or not.
- It provides a specific timeframe for the payment to be made.



An after sight bill is a type of bill of exchange that specifies that the payment is due after the bill has been presented for acceptance or sight. The due date is determined by the date of acceptance or sight, which is the date when the drawee acknowledges and accepts the bill.

Key points about after sight bill:
- The payment is due after the bill has been presented for acceptance or sight.
- The due date is determined by the date of acceptance or sight.
- The due date is usually not mentioned on the face of the bill and is determined later.
- The payment becomes due only after the bill has been accepted by the drawee.
- It provides flexibility in terms of payment as the due date is not fixed initially.



In summary, the main difference between after date bill and after sight bill lies in the determination of the due date. While an after date bill specifies a fixed period of time from the date of its creation until the payment is due, an after sight bill specifies that the payment is due after the bill has been presented for acceptance or sight. The due date for an after sight bill is determined by the date of acceptance, whereas for an after date bill, it is determined by adding a fixed period of time to the date of creation.