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1.It is a very short-term source of finance and as such it may not be profitable as its duration cannot warrant any profitable ventures i.e finance from the bill cannot be invested in profit table ventures.
2.There are possibilities that the bills may be dishonored by the drawee and drawer may have to settle any liabilities incurred thereon.
3.It is a foreign bill of exchange this may delay the finance in that it may require the approval of the central bank before discounting it.
sharon kalunda answered the question on April 16, 2019 at 14:10
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