Acceptance Credit

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Acceptance Credit

A letter of credit in which the buyer authorizes the transfer of funds to the seller on or after a certain date assuming the conditions of the letter are met. Acceptance credit may be confirmed, meaning that a bank has promised to pay in the event of default, or unconfirmed, meaning the seller assumes the risk of the borrower's default. See also: Banker's Acceptance.
References in periodicals archive ?
This ruling shocked many banks, and I know some bankers in the Middle East who resorted to increased issuance of deferred payment LCs, but when it came to adding confirmations insisted on acceptance credits, presumably believing, in the light of above ruling, that they were protected in cases of fraud.
Shipments of goods to and from these areas were not necessarily completed within the ninety-day or, with one renewal, six-month limit to which the Federal Reserve Act appeared to restrict the duration of acceptance credits.
Equally useful would be acceptance credits that from their inception had no goods collateral.
was the leading private bank in Hamburg, playing a top role in acceptance credits, foreign exchange, and securities operations.