A bill of exchange is a commercial agreement that ensures that one person will pay another a set amount of money on a specific date. A bill of exchange is a written order issued by one person, known as the drawer, to another person, known as the drawee or debtor, to pay a sum of money on a specific due date. The bill of exchange can be paid to the drawer directly or to a third party, known as the beneficiary or payee, to whom the drawer has transferred (or endorsed) the bill of exchange.