Acceptance Credit. An acceptance credit calls for a usance bill of ex-change of a specified period to be drawn under the credit. For instance, the letter of credit may require the exporter to draw ’90 days’ bill. The advantage under an acceptance credit is that the buyer need not pay immediately; he pays only on the due date of the bill. The seller gets the bill accepted by the bank and, in case he is in need of funds, discounts it with his bank.
Thus the seller can also get payment immediately. The duty of the issuing bank under this credit is not only to see that the bill is accepted but also to ensure payment on maturity.
