Define: Accommodation Bill

UK Accounting Glossary

Definition: Accommodation Bill


Quick Summary of Accommodation Bill


A bill of exchange endorsed by a reputable third party acting as a guarantor, as a favour and without compensation.



What is the dictionary definition of Accommodation Bill?

Dictionary Definition


An accommodation bill is a bill of exchange signed for by a person (the accommodation party) acting as a guarantor. The accommodation party is liable for the bill should the acceptor fail to pay at maturity. Accommodation bills are sometimes also referred to as windbills or windmills.


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Full Definition of Accommodation Bill


A type of bill of exchange where the party signing as drawer, acceptor or endorser does not receive value (or consideration) for doing so and accepting primary liability under the bill. Typically, accepting or endorsing a bill without value is done to “accommodate” another party who may use the bill to raise finance, for example, a bankers’ acceptance.

Accommodation bills are sometimes also called windbills or windmills.


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Accommodation Bill FAQ's


What is difference between an accommodation bill and a trade bill?

trade bill arises from an indebtedness arising from purchase of goods or taking of a loan whereas an accommodation bill is drawn and accepted only for providing fund to one of the parties or both the parties of the bill.


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Accommodation Bill. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/accommodation-bill/ (accessed: September 17, 2019).
American Psychological Association (APA):
Accommodation Bill. PayrollHeaven.com. Retrieved September 17, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/accommodation-bill/

Definition Sources


Definitions for Accommodation Bill are sourced/syndicated from:


This glossary post was last updated: 27th January 2019.