Definition of sight draft

order signed by the drawer asking the drawee to pay the amount due the payee upon demand. In many cases the drawer and payee are the same.

bill of exchange or draft that is payable when presented. Used when the seller of goods wants to retain control of the goods being shipped to an importer or exporter, either for credit reasons or to retain title. Money is payable at sight, or when the completed documents are presented, or within a specified period called days of grace.

draft payable on demand; bill of exchange for immediate collection.