L/C Acceptance refers to the act under a usance letter of credit where the issuing bank or a nominated bank, after receiving documents that comply with the L/C terms, writes the word 'accepted' on the draft and signs it, undertaking to pay the draft amount on the maturity date. This term is common in usance L/C transactions (e.g., 60 days, 90 days). It is used when the exporter needs financing or the importer wishes to delay payment. Note: After acceptance, the bank bears the payment obligation at maturity, but the exporter should consider the creditworthiness of the accepting bank; if the accepting bank is not the issuing bank, confirm whether it is authorized. Unlike 'negotiation', which is the bank buying the draft in advance, acceptance is merely a promise to pay at maturity; compared with 'sight payment', acceptance defers the payment time. The exporter can use the accepted draft for discounting or forfaiting financing.
📝 Examples
1. We have received a 90-day usance draft accepted by the issuing bank and plan to apply for discounting with the bank after acceptance to recover funds early. (Note: The exporter uses the accepted draft for financing.)
2. Please confirm that the draft under the L/C has been accepted by the nominated bank so that we can arrange shipment and track payment at maturity. (Note: The importer or exporter confirms the acceptance to ensure payment security.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner