What is difference between term bills and trust receipt?
submitted by Lily

scott

A term bill is basically an invoice that's paid over time, usually on some fixed schedule.

A trust receipt is what a lender gives when they let the borrower take some asset that's held in trust, with the agreement to pay it off later. It's a little different because the lender still owns the asset until it's paid off.

I think ownership is the big difference.

nate

A term bill is like your regular invoice you get when you buy something on credit. You're just agreeing to pay it back over time.

A trust receipt is more complicated. It lets you take some goods, but they don't actually belong to you when you take them. If you financed the purchase of the goods through the bank, the bank owns them until you pay them off. They use this a lot with import/export purchases.