Businessman System of Payment
1. Bill of Exchange: This is an order made by the seller to the buyer requesting him to make payment to him at a particular time in the future. Normally, the supplier prepares a bill of exchange for endorsement and acceptance by the customer. It can be discounted with a bank.
2. Promissory Note: It is a promise made by the buyer to the seller to pay a certain sum of money at a future date.
3. I Owe You (IOU): It is an acknowledgment of debt made on writing. It shows an outstanding that one person owes another. Though it is not a negotiable instrument but evidence of indebtedness.