Question

Differentiate between the following:

1. Sight and issuance drafts,

2. Bill of lading and airway bill,

3. Pre-shipment and post- shipment finance.

Answer 1

1. Sight and Issuance Draft

Basis of difference	sight draft	issuance draft
when documents are handed over	Documents are handed over to the importer once he or she agrees to sing the draft.	Documents are handed over to the importer after the acceptace of the bill of exchange.
payment	payment is made at the time of issuing the draft.	payment is made on the expiry of a specified period.

2. Bill of Lading and Airway Bill

Basis of difference	Bill of lading	Airway Bill
who issues	issued by shipping companices	issued buy airline companies
Transportation	Good are sent by ship	Goods are sent by air

3. Pre-shipment Finance and Post-Shipment Finance

Basis of difference	Pre-shipment Finance	post -shipment finance
Time of credit	credit is obtained before the shipment of good.	credit is obtained after the shipmet of goods.
use	used for purchasing raw materials to under take production activities, packaging of goods and transporting goods to the ports of shipment	used for financing actvities from the date of receiving credit till payment is received from the importer