Glossary
Terms & Glossaries of Shipping and Trading
BA (Banker's Acceptance)
Banker's Acceptance (BA) is a negotiable piece of paper that functions like a post-dated check and a form of financing used in import/export transactions.
Banker's Acceptance (BA) is a negotiable piece of paper that functions like a post-dated check and a form of financing used in import/export transactions. A bank, rather than an account holder, guarantees the payment. Banker's acceptances (also known as bills of exchange) are used by companies as a relatively safe form of payment for large transactions. BAs can also be short-term debt instruments, similar to U.S. Treasury bills, that trade at a discount to face value in the money markets.
