In simple terms Avalisation is another word for endorsing a Bill of Exchange. This is where a PERSON or a corporate effectively acts as a GUARANTOR for the obligations of the Bill. In most cases this would be a Bank. An endorser of good credit will increase the value of the Bill should drawer of the Bill wish to discount it with a financial institution.

In other words, it is a guarantee on a negotiable instrument which states that the party providing it’s AVAL will pay the instrument upon its maturity if the drawee or obligor fails to fulfill their OBLIGATION. When overseas companies are the obligors on negotiable instruments, the PROVISION of an AVAL by a bank is often necessary to make the instrument acceptable for DISCOUNTING.

In simple terms Avalisation is another word for endorsing a Bill of Exchange. This is where a person or a corporate effectively acts as a guarantor for the obligations of the Bill. In most cases this would be a Bank. An endorser of good credit will increase the value of the Bill should drawer of the Bill wish to discount it with a financial institution.

In other words, it is a guarantee on a negotiable instrument which states that the party providing it’s AVAL will pay the instrument upon its maturity if the drawee or obligor fails to fulfill their obligation. When overseas companies are the obligors on negotiable instruments, the provision of an AVAL by a bank is often necessary to make the instrument acceptable for discounting.