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A banker's acceptance is an instrument representing a promised future payment by a bank.
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Explain the advantages and disadvantages of using bankers❝ acceptance for financing an export.
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Banker's acceptance is one of those complicated word combination which make people rack their brain trying to understand what it is and how it works. The bankers acceptance is issued at a discount, and paid in full when it becomes due — the difference between the value at maturity and the value when issued is acceptance financing is the financing of commercial transactions, usually involving import/export businesses, by using bankers acceptances. What is banker acceptance example. In this post, we will try to find out what it is in the simplest possible terms and discover why it can be both bad and good to you. Since commercial banks are larger than private banks, the perceptibly will have more locations for customers to access their money.
Harry, the owner of harry's imports, asked his bank for a banker's acceptance. The banker of the importer provides assurance through the banker's acceptance to the exporter. Advantages and disadvantages of banks efinancemanagement com. The exporter is reasonably assured of the payment. If you have an established relationship with your bank, they will have developed a good understanding of your business. A banker's acceptance is an instrument representing a promised future payment by a bank. The advantage of investment banker is they can earn a high salary, top earners in the country. This is very helpful when customers travel and need to access their accounts.
Since commercial banks are larger than private banks, the perceptibly will have more locations for customers to access their money.
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