World practice shows that accounting billsis a transfer of the holders of these same bills to banks until the due date. After that, there is a payment of the stipulated bill of exchange amount, except, of course, a certain percentage, which was prescribed in the contract. This percentage is called the accounting percentage accordingly.
Economic feasibility and ways of occurrence of bills
Before analyzing possible relationships,which can be formed between the client, the bearer of the securities, and the bank should understand the essence of the economic effect that bears the accounting of bills in the bank. First of all, in this situation, it is worthwhile to assess the initial stage of the formation of the bill itself. It is customary to single out two options in which the occurrence of the so-called commercial circulation of bills is possible. The first option is classic. In this situation, the buyer of a certain product or service gives the seller a bill that guarantees the performance of a contractual payment in the future, or, conversely, the seller puts a bill of exchange on the buyer of services or goods, but already transferable. The second option is when directly by a promissory note occurs payment for the goods provided by the seller. Sometimes this system is called settlement or "Patriotic". Basically, the essence of both one and, in principle, the second option is that the buyer has the opportunity to receive the goods without the necessary funds at the moment, and the seller is ready to receive these funds in the future.
Commercial lending through bills
As you can see, the scheme involves onlytwo subjects - the seller and, accordingly, the buyer, so why still need to account for bills in the bank? Fundamentally, accounting for bills of exchange may not be necessary if these bills of exchange are subsequently used as a means of settlement or are used in certain chains of mutual settlements when they are not exchanged back for a cash equivalent. On the other hand, a bill of exchange is solely proof to some extent of the buyer's reliability in the field of payment, which, as we know, may not always be true for objective or subjective reasons. At the same time, the development of the promissory note system as a form of credit alleviates the burden on the banking sector, since it eliminates the need to apply to the bank for a loan, in fact, the seller becomes the lender. By accounting or rediscounting of bills, the bank receives a certain percentage as a bonus. One of the few, but rather significant, drawbacks of such a system for banks is the presence of a fixed percentage when concluding a transaction for accounting or rediscounting of bills of exchange, which is not very comfortable considering the possible change in market conditions.
Possible risks
Naturally, as in other areascredit relations, accounting bills carries a certain amount of risk. First of all, we are talking about the possibility of non-payment of credit obligations, which to a certain extent can be offset by the regressive requirements for endorsers (the more the latter, the risk, of course, becomes less). The risk of concentration is not excluded. The next is the so-called collateral risk. The fact is that the accounting of bills of exchange is not accompanied, as a rule, by any means of ensuring the current fulfillment of obligations, which, naturally, greatly increases the risks in comparison with other methods of lending. And finally, a definite, one might say, specific risk for commercial bill crediting is the possibility of accounting for securities that do not have a bill of exchange or other force, or, in general, are counterfeit.
