Define: Acceptance Credit

UK Accounting Glossary

Definition: Acceptance Credit

Quick Summary of 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


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Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Acceptance Credit. Payroll & Accounting Heaven Ltd. November 12, 2019
Chicago Manual of Style (CMS):
Acceptance Credit. Payroll & Accounting Heaven Ltd. (accessed: November 12, 2019).
American Psychological Association (APA):
Acceptance Credit. Retrieved November 12, 2019, from website:

Definition Sources

Definitions for Acceptance Credit are sourced/syndicated from:

This glossary post was last updated: 27th January 2019.