banker's acceptance

Definition of "banker's acceptance"
  1. A guarantee issued by a bank promising payment for an exporter's bill on behalf of the importer, typically on a short-term basis
How to use "banker's acceptance" in a sentence
  1. The company uses a banker's acceptance to ensure the supplier is paid on time.
  2. Due to the high trust level in the transaction, a banker's acceptance is commonly used in international trade.
  3. A banker's acceptance allows an importer to transact without upfront payment, which helps in improving the cash flow.

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