The financial encyclopedia uses cookies to improve your user experience. Find out more here!




Irrevocable documentary acceptance credit


A credit scheme to facilitate foreign trade. An overseas customer opens a credit in the London office of an overseas bank or with a London bank. The bank then gives the exporter an irrevocable letter of credit. The bank will then accept bills of exchange drawn on it by the exporter, when he presents his shipping documents.

Reference: The Penguin Business Dictionary, 3rd edt.