what s the difference between a bill of exchange and a promissory note 
the difference between a promissory note and a bill of exchange is that the latter is transferable and can bind one party to pay a third party that was not involved in its creation banknotes are common forms of promissory notes a bill of exchange is issued by the creditor and orders a debtor to pay a particular amount within a given period of time the promissory note on the other hand is issued by the debtor and is a promise to pay a particular amount of money in a given period the bottom linebills of exchange help facilitate the process of international trade by stipulating payment from one party to another at a specified date they function similarly to a check and though not a contract can be used to fulfill the terms of a contract 