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.


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Full Definition of Acceptance Credit



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https://payrollheaven.com/define/acceptance-credit/
Modern Language Association (MLA):
Acceptance Credit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 16, 2019 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: September 16, 2019).
American Psychological Association (APA):
Acceptance Credit. PayrollHeaven.com. Retrieved September 16, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/acceptance-credit/

Definition Sources


Definitions for Acceptance Credit are sourced/syndicated from:


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