Bankers Acceptance Financing


If you are importing, exporting or purchasing goods domestically, you may need financing for up to 180 days. A Bankers Acceptance is a low cost loan that covers the normal cash conversion cycle, for a specific shipment or lot of inventory.

Trade Bankers Acceptances

A Trade Bankers Acceptance (BA) originates as a draft under a Letter of Credit (LC), where the LC allows for payment on a future date. When the exporter presents complying documents, the bank “accepts” the draft as an unconditional obligation to pay in the future. The exporter can wait for the payment date, or sell the BA immediately for the principal amount less discount interest.

With Trade BAs, the exporter gets paid immediately without using their credit line. The importer still has up to 180 days to sell the goods and repay the loan.

Clean Bankers Acceptances

A Clean BA is just a short-term loan for the purchase of inventory. It does not require a Letter of Credit, and is usually used for domestic, not international, purchases.

You, as the buyer of inventory, simply present us with your promise to pay on a future date, and we “Accept” it. We then buy the Acceptance from you, giving you cash now (less discount interest) in exchange for your promise to repay us on the future date.

To qualify, the loan must be tied to new inventory that has moved at least 50 miles or across a state boundary. The term of the loan must be the lesser of 180 days, or the typical amount of time for you to turn the inventory back into cash.

How do Huntington Bankers Acceptances help your business?

  • Importers using Letters of Credit can easily obtain financing for up to 180 days.
  • Exporters using Letters of Credit can get funds immediately, while extending terms to their buyers.
  • Buyers not using Letters of Credit have a quick and easy source of financing while selling purchased inventory.

To learn more about Bankers Acceptance Financing, contact your Banker or International Specialist.  You can also call International Direct at 1-877-480-INTL (4685) Monday to Friday, 7:30 a.m. to 6:00 p.m. ET. Or email us at