Document background
The Acceptance LC is a crucial trade finance instrument used when parties require both payment security and credit extension. Under Singapore jurisdiction, this document type combines the role of a traditional Letter of Credit with a time-based payment mechanism. The Acceptance LC is particularly valuable in international trade scenarios where the seller requires a bank's guarantee of payment at a future date. It includes specific terms for acceptance, maturity dates, and document requirements, all governed by Singapore banking regulations and international trade practices.
