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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Synonyms For Accommodation Bill


kite, windmill, finance bill, windbills


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Accommodation Bill. PayrollHeaven.com. Retrieved February 27, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/accommodation-bill/

Definition Sources


Definitions for Accommodation Bill are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

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