Abiblo Finance - Acceptance Credit

​Acceptance Credit 
Acceptance credit is a form of financing the sale of goods mostly in international trade. It involves the merchant bank or commercial bank extending credit to a foreign importer who is credit worthy. 
 
Acceptance credit is opened against which the exporter can draw a bill of exchange. Once acceptance by the bank, the bill is discounted on the money market or allowed to mature. 
 
However, the exporter need to pay the bank a fee known as acceptance commission.