Bank Draft

What is a Bank Draft?

A Bank Draft is a payment instrument issued by a bank on behalf of a customer, guaranteeing payment to a recipient. It is similar to a cashier’s check but is pre-funded, meaning the bank deducts the amount from the customer's account before issuing the draft.

Example:
A Singapore-based exporter receives a $5 million bank draft from a U.S. buyer as payment for bulk shipments.

Uses of Bank Drafts

• Safe international transactions

• Large real estate purchases

• Loan settlements

Pros and Cons of Bank Drafts

✔️ Guaranteed payment
✔️ Widely accepted internationally
✔️ No risk of bounced checks
❌ Difficult to cancel or recover if lost
❌ Requires full prepayment before issuance

INN CREDIT LIMITED provides secure, fast, and globally accepted bank drafts for businesses.