Finance Bank Zambia Ltd

Welcome to Finance Bank Zambia Limited

PRODUCTS AND SERVICES

BANKERS ACCEPTANCE

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A Banker's acceptance is a time Bill of Exchange drawn on and accepted by a bank. The person giving the Bill is known as the Drawer; the person receiving it is the Drawee.

Acceptance of a Bill is signified in writing, usually across the face of the Bill, whereby the Drawee accepts responsibility for payment of the Bill. When the Drawee accepts the bill, he is called the acceptor. Thus if a customer of Finance Bank, under an

agreement with us, draws a Bill of Exchange on the Bank and we as a Bank accept it, then the Bill becomes a Banker's Acceptance.

The Drawer i.e. the customer, then has a "two name Bill" i.e. his own name and the bank's, which makes it a highly credit-worthy document.

The customer (the drawer) will then have this Bill discounted, either by the accepting Bank or the Bill may be discounted by another Bank or a Discount House.

Bills may be drawn at 30 days, 60 days, 90 days or 180 days.

At maturity the holder for value will present the Bill of Exchange for payment to the accepting Bank which will then debit the Customers account under the terms of the agreement.

Acceptance Commission and discount rate is applied