Acceptance Credit
Acceptance Credit is a method where buyers authorize the transfer of funds to sellers on a specific date once certain terms and conditions are met. This process is facilitated through a letter of credit (LC), which is a promise from a creditworthy bank to ensure payment will be made.There are two types of Acceptance Credit:1. Confirmed Acceptance Credit: The bank guarantees payment to the seller in case the buyer defaults, providing additional security.2. Unconfirmed Acceptance Credit: The bank does not provide a guarantee of payment if the buyer defaults, leaving the seller with more risk.
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