When a bank sets up a credit center for a creditworthy importer. The exporter may use the account. This might be also referred to as acceptance funding.
one of several means in which worldwide trade is financed. Under this arrangement, a bank (or an acceptance home) inside exporter's country creates an acceptance credit facility (just like a checking account) on behalf of a creditworthy importer. The exporter after that can draw with this account around its limitation. Also referred to as acceptance funding.