What is a bill of exchange (tratta)?

A bill of exchange (tratta) is a payment demand subject to threat of public disclosure, which is used in business collection. Use of a bill of exchange is permitted only in clear and uncontested receivables. When a collection company sends a bill of exchange, it also has the option of reporting the case to the controller of a credit information register and in such cases the bill of exchange results in a payment delay entry in the debtor customer’s credit information. A payment delay entry is an indication that the company has not paid its debt on time. 

A bill of exchange can be protested at the earliest 10 days after it is sent. A protest results in a payment default entry in the company’s credit information. A bill of exchange can be protested either silently or publicly. A silent protest only results in an entry in a company’s credit information, but public protests can be published in a so-called protest list in the financial sector press.