📄 Bank Draft
US Capital Private Bank Knowledge Base
📖 What is a Bank Draft?
A Bank Draft is a check drawn by one bank on another bank, payable to the seller at the request of the buyer. It is a secure form of payment often used in domestic and international transactions.
⚙️ How Does it Work?
-
The buyer requests their bank to issue a draft.
-
The issuing bank draws the check on a correspondent bank or another financial institution.
-
The draft is payable to the seller or beneficiary.
-
It can be denominated in U.S. Dollars or most foreign currencies, depending on the transaction needs.
-
The bank guarantees payment, making it a trusted and safe instrument in trade.
💡 Why Use a Bank Draft?
-
Ensures guaranteed funds to the seller.
-
Used for large payments where personal checks may not be accepted.
-
Facilitates cross-border payments with currency options.
-
Offers more security than a personal check since it is backed by a bank.
📚 Related Terms
-
Cheque: A written order directing a bank to pay money.
-
Corresponsent Bank: A bank that provides services for another bank in a different location.
📞 Contact US Capital Private Bank
📧 Email: [email protected]
🌐 Website: https://uscapitalprivatebank.com