Bankers' Acceptances for Imports

Finance the purchase of goods on a short-term basis with bankers' acceptances.

Want to gain greater flexibility for financing goods in international trade? Consider bankers' acceptances—debt instruments that can help you obtain increased flexibility in borrowing on a short-term basis.

Bankers' acceptances can serve as a low-cost alternative to loans.

A banker's acceptance is a time draft, in which customers promise to reimburse the bank at a future maturity date. Importers use acceptances mainly as a low-cost alternative to loans. Importers typically sell acceptances, at a discount, to an investor in order to generate funds to pay for goods purchased. At maturity the accepting bank pays the investor, and the importer repays the amount of the acceptance to the bank. The investor earns the amount of the discount.

If you are an importer needing to finance a purchase of goods, Fifth Third Bank can assist you with short-term financing.

Bankers' acceptances can be used to finance transactions involving:

• Letters of credit
• Documentary draft collections
• Open account purchases

Fifth Third Bank's banker's acceptance service is scalable, and requires minimal setup and no interfaces.