Question

How is a bankers acceptance different from a trade acceptance?

Answer 1

Bankers acceptance differ from trade acceptance in following way.

1.An acceptance or promise given by bank is called bankers acceptance,while acceptance given by business organisation is called trade acceptance.

2.Bakers acceptance and trader acceptance both are negotiable instruments ,but cheque is issued as banker acceptance while promissory note instrument is an instrument of trade acceptance.

3.Cheque which is instrument of bankers acceptance specified the all information so know stamp is required for their validity while for vadility of promissory note stamp is essential.

4.Normally bankers acceptance is given to trade of gods while trader acceptance is given for credit.

5.Bankers acceptance is used for international trade covered under documentary credit while most of trade acceptance is covered under uniform commercial code.