Trade acceptance


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Trade acceptance

Written demand that has been accepted by an industrial company to pay a given sum at a future date. Related: Banker's acceptance.

Trade Acceptance

A bill of exchange that has not been countersigned by the drawee's bank. A trade acceptance is presented as payment for a good or service. It is only as valuable as the drawee's creditworthiness. It is also called an accepted bill of exchange, an accepted draft, or a trade bill.
References in periodicals archive ?
At the inception of the Federal Reserve in 1913, it was presumed that Federal Reserve assets would primarily consist of short-term privately issued paper, such as bankers' acceptances, trade acceptances, and bills of exchange.
The underlying receivable has been converted into a Trade Acceptance Draft.
In particular, the US lacked a liquid market in trade acceptances, the instrument used to finance imports and exports.
One of the heavy hindrances in former years lay in the lack of a market for foreign trade acceptances in the United States such as exists in all the Western and Central European countries.