​KembaraXtra- Financial Terms- accommodation bill refers to a bill of exchange signed by a person known as the accommodation party, who acts as a guarantor for another party.


The accommodation party signs the bill not because they directly benefit from the transaction, but to support the creditworthiness of the main borrower or acceptor.


If the acceptor fails to pay the bill at maturity, the accommodation party becomes legally responsible for making the payment. This creates additional security for the holder of the bill.


Accommodation bills are sometimes called windbills or windmills. These terms were historically used in financial markets and commercial trade practices.


Such arrangements can help businesses obtain financing or credit more easily, although they also expose the guarantor to financial risk if default occurs.