Sight draft definition
/What is a Sight Draft?
A sight draft is a bill of exchange that is due and payable on demand. There is no delay in payment. This instrument is used when an exporter wants to retain title to shipped goods until paid, usually because the importer is considered to be a credit risk. To be paid, a sight draft must be presented along with a letter of credit and a bill of lading. Sights drafts are commonly used in international trade transactions.
Terms Similar to Sight Draft
A variation on the concept is the time draft, where payment is due at a later date.