acceptance credit

There are two types of acceptance credit, confirmed and unconfirmed.

Trade-related financial services shifted from direct financing to acceptance credit.

By the mid 18th century, investment banking and acceptance credits comprised a significant part of the firm's activities.

The method of creating a bill is for the customer to arrange an acceptance credit facility with his bankers.

In any case, the periwigged investors had in certain respects no choice when they shifted to acceptance credit and commission trade, for instance.

As a result, acceptance credit evaporated temporarily, causing another credit crunch which brought down a number of venerable banking houses.

Acceptance Credit:

Mark Turner remained keen for Bensons to expand away from new issues and investments into the traditional merchant banking activity of acceptance credits.

Confirmed acceptance credit is more expensive to establish than unconfirmed acceptance credit because the issuing bank is effectively guaranteeing payment.

Its valum in the international markets is relatively concentrated on services, including insurance and confirmation of letters of credit, creation of acceptance credits, and supply of foreign exchange.

The bank's aim was to finance imports to the US from Italy, to fund acceptance credits and to gather the deposits of Italian migrants to the US.

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 of credit have been complied with.

ACCEPTANCE CREDITS are a way for larger businesses to raise sums over £500,000, more cheaply than by overdraft.

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 nondelivery, confiscation by customs authorities, or any other problems.

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.

Known as "accepting and issuing houses" in the U.K. and "investment banks" in the U.S., modern merchant banks offer a wide range of activities, including issue management, portfolio management, credit syndication, acceptance credit, counsel on mergers and acquisitions, insurance, etc.

In Holland these grew out of merchant houses that shifted their capital first from financing their own trade and inventories to acceptance credit, and later branched out specifically into underwriting and public offerings of foreign government bonds (denominated in Dutch guilders) in the Dutch capital markets.

It also transfers the risk of non-delivery to the recipient, because once the seller places the product in the hands of the shipping company, the seller has complied and will be paid; if the shipment does not arrive, is delayed, or other problems occur, the buyer cannot stop payment or otherwise prevent redemption of the acceptance credit.