An accommodation party is a person who signs a bill of exchange or promissory note to help another person get finance, without receiving any direct benefit.

The accommodation party:

Lends their name and credit

Becomes legally responsible to pay if the main party fails

Helps the other person raise money by discounting the bill

For example, in an accommodation bill, one person accepts the bill only to support the drawer in getting funds.

In simple terms, an accommodation party is someone who signs a bill just to help another person obtain credit.