THE UNCONDITIONAL PROMISE.
Banker’s Acceptances are time drafts drawn on and accepted by a bank, with payment at a fixed or future date. The accepting bank conveys its unconditional promise to pay the face amount of the draft to the ‘holder in due course.’ Benefits and features include:
- Self-liquidating, fixed rate method of financing
- Can be sold to investors in the open market for short-term financing
- May be discounted by the accepting bank resulting in immediate payment to exporter
- Marketable and cost-effective