give any 5 disadvantages of bill of exchange

Hi Rashi,

Despite various advantages, bills of exchange suffer from a number of disadvantages as well. The following points enumerate some of them:

1. Even if the bill is discountable, banks discount the bill only after they are fully satisfied with the credibility of the holder and the drawee.
2. In case of dishonour of bill, noting charges are to be paid so as to procure formal evidence of the dishonour in order to recover proceeds from the drawee.
3. Promissory notes are only used in home trading business.
4. Promissory notes cannot be payable to the bearer.
5. As date of payment is fixed, so the drawee is liable to make the payment on the pre-fixed date.

Hope this clarifies your doubt.
Keep posting!!

 

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