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