Negotiable Instruments are documents that represent a right to payment and can be easily transferred from one party to another, typically by endorsement or delivery.
These financial tools allow businesses to convert future payments into immediate cash through trusted third parties. They let value travel smoothly between companies without getting bogged down in complicated contracts or legal reviews.
Common examples of negotiable instruments include checks, promissory notes, and bills of exchange.
Download the International Trade and Forfaiting Association (ITFA) Digital Negotiable Instruments Initiative Manual here.