Acceptance Credit

Business, Legal & Accounting Glossary

Definition: Acceptance Credit



What is the dictionary definition of Acceptance Credit?

Dictionary Definition


A means of financing the sale of goods, particularly in international trade. It typically involves a commercial bank or merchant bank extending credit to a foreign importer whom is deemed credit worthy. An acceptance credit is opened against which the expert can draw a bill of exchange.

Once accepted by the bank, the bill can be discounted on the money market or allowed to run to maturity.

In return for this service the exporter pays the bank a fee known as acceptance commission.


Full Definition of Acceptance Credit


A means by which international trade is financed. Under this arrangement, a bank (or an acceptance House) in the exporter’s country set up an acceptance credit facility (similar to a checking account) on behalf of a credit-worthy importer. The exporter may then draw on this account up to its limit. Also known as acceptance financing.


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https://payrollheaven.com/define/acceptance-credit/
Modern Language Association (MLA):
Acceptance Credit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. December 02, 2020 https://payrollheaven.com/define/acceptance-credit/.
Chicago Manual of Style (CMS):
Acceptance Credit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/acceptance-credit/ (accessed: December 02, 2020).
American Psychological Association (APA):
Acceptance Credit. PayrollHeaven.com. Retrieved December 02, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/acceptance-credit/

Definition Sources


Definitions for Acceptance Credit are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th December, 2019 | 13 Views.