A Banker’s Acceptance is a time draft, drawn on and accepted by a bank. As the accepting bank, it is National Penn Bank’s responsibility to pay the holder of the draft at maturity. The use of Bankers’ Acceptance financing provides greater access to foreign markets when purchasing supplies and other merchandise.
The advantages to you as an importer are:
- assurance that the goods have been shipped since the documents are presented along with the draft, which you (we) will accept to pay at maturity.
- your funds are not tied up because the payment is deferred until the maturity date of the Banker’s Acceptance.
Without a Banker’s Acceptance, the seller may be unwilling to accept your credit risk and you could be forced to pay either in advance or upon approval of the goods.