What is ACCEPTANCE CREDIT? What does ACCEPTANCE CREDIT mean? ACCEPTANCE CREDIT meaning & explanation

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What is ACCEPTANCE CREDIT? What does ACCEPTANCE CREDIT mean? ACCEPTANCE CREDIT meaning &- ACCEPTANCE CREDIT definition - ACCEPTANCE CREDIT explanation.

Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license.

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An acceptance credit is a type of letter of credit that is paid by a time draft authorizing payment on or after a specific date, if the terms of the letter of credit have been complied with. There are two types of acceptance credit, confirmed and unconfirmed. Unconfirmed acceptance credit means that the seller takes the risk that payment will not be made, due to any number of contingencies such as shipment non-delivery, confiscation by customs authorities, or any other problems. Confirmed acceptance credit means that the bank upon which the credit has been issued, essentially guarantees payment as long as the terms of the letter o...

Topics:  Society