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A draft, also known as a “bill of exchange”, is a traditional, long-standing trade instrument which has been used across the globe for hundreds of years; it is recognized by trading partners and financial institutions as a means of payment.

In the legal context, a draft can refer to various types of documents, including contracts, agreements, pleadings, opinions, or other legal instruments. The purpose of creating a draft is to allow for careful review, revision, and collaboration before producing the final version.

A document representing payment between a buyer and a seller. A draft is a promise to pay at an agreed upon date from buyers that sellers take to their bank and deposit.

A draft is used when the payee wants a highly secure form of payment. The bank can safely issue this guarantee because it immediately debits the payer's account for the amount of the check, and therefore has no risk. In effect, the required funds have been set aside by the bank.

A bank draft is a payment that is like a check, but its amount is guaranteed by the issuing bank. The funds are drawn from the requesting payer's account and are then placed in the bank's reserve account until the draft is cashed by the payee.